In a move to offset the significant financial impact of upcoming gambling advertising reforms, Australia‘s two largest television networks are set to demand that their spectrum fees be slashed.
According to a report by the Australian Financial Review, the reforms, proposed by Communications Minister Michelle Rowland, aim to curb the prevalence of gambling-related advertising across the country.
Key elements of the reforms include banning gambling ads on TV for an hour before and after live sports broadcasts; capping the number of gambling ads on free-to-air TV at 2 per hour until 10 pm; and implementing a blanket ban on gambling ads on social media and other digital platforms
These sweeping changes are expected to lead to a substantial drop in advertising spending from wagering firms, creating a AU$40 million ($20 million) revenue hole for TV networks.
To mitigate the financial impact, the television networks will push for concessions from the government, specifically seeking a reduction in their spectrum fees.
“The reforms will have a significant effect on our bottom line,” said a senior executive at one of the major TV networks, who spoke on the condition of anonymity. “We have no choice but to seek relief from the government to offset this anticipated drop in revenue.”
The proposed crackdown on gambling advertising comes as part of a broader effort by the government to address concerns over the societal impacts of excessive gambling. However, the move is set to have far-reaching consequences for the television industry, prompting the networks to advocate for measures to protect their financial interests.
As the government prepares to implement the new regulations, the battle lines have been drawn, with the TV networks preparing to make their case for spectrum fee relief in the face of the looming AU$40 million ($20 million) wagering advertising hole.
