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Australian TV Networks Offered Incentives to Reject Gambling Ads
- July 25, 2016 By Nemanja L. -
While the number of Aussie residents involved in some form of gambling continues to rise, the authorities are working around the clock in an attempt to arrest the growing trend.
The Alliance for Gambling Reform has now revealed a somewhat controversial proposal, designed to offer TV networks a discount on their license fee if they reject the opportunity to air betting advertisements.
The idea is that the network’s license fee is reduced by the same amount that they would have earned from betting advertisements, with theoretical maximum discount being AUD150 million.
Will Sports Betting Ads be Banned?
While the Alliance for Gambling Reform director for strategy Rohan Wenn hopes to “get rid of the ads that are killing the codes we love”, one could argue that it would be difficult to determine the number and value of potential rejected advertisements from sports betting operators.
Independent Senator for South Australia Nick Xenophon and Independent Member for Denison Andrew Wilkie were the first high-profile politicians to be informed of the plans, and that is definitely not a surprise.
Namely, the duo wants to introduce a new legal framework that would eventually ban all sports betting advertising, as well as install a $1 maximum bet on all poker machines.
Xenophon also believes that land-based broadcasters are in an unfavourable position as they are forced to pay license fees, when their competitors such as Netflix have no such obligations.
However, the leading TV networks are far from happy with the latest plans seeing as how they would be denied serious earnings if the plans were to go ahead.
Australian authorities have been working hard in an attempt to protect its residents from potentially harmful gambling operators, but it appears they have gone a step too far and are now attempting to affect every aspect of the online gaming industry.
It remains to be seen whether the Alliance for Gambling Reform will manage to realise their plans any time soon, but you can expect the local TV networks to fight tooth and nail to keep their ties with the sports betting industry alive and kicking.