Will Australian free-to-air TV really be in 'diabolical trouble' without gambling ad revenue?

If you watch free-to-air television in the evening, it is almost impossible to avoid the endless stream of gambling advertisements, the majority of which concern online gambling platforms. According to the broadcasting authorities, gambling advertisements on free-to-air channels peak between 7pm and 10pm, when 22% of promotions are broadcast.

Between May 2022 and April 2023, more than half a million (504,100) gambling advertisements were broadcast on metropolitan television. Of these, 51% advertised online gambling companies, 20% advertised lotteries and 17% advertised lotteries.

The damage caused by gambling addiction is well known. The devastating social harm often extends beyond the problem gambler, affecting their family and the wider community.

Last year, a full ban was proposed by a bipartisan inquiry chaired by the late Labour MP Peta Murphy, but the Labour government appears set to water down that proposal and respond with a partial ban.

What do the TV channels say?

Australian television networks have told the government they are so reliant on advertising revenue from gambling advertisers that they need it to stay ahead.

Without it, Ten, Nine and Seven say they may have to rethink their strategy for funding local news bulletins. It is just one of the outrageous claims made this week by media companies and the Albanese government. Banning all gambling advertising, as recommended by the Murphy inquiry, would make the free-to-air television industry unsustainable, they say.

Bill Shorten even went so far as to say broadcasters were in a "diabolical situation" and needed gambling advertising revenue "just to stay afloat".

How much money do broadcasters make overall from advertising?

Figures released this week show that the total TV advertising market, which includes all metropolitan free-to-air, regional free-to-air and catch-up channels, is estimated to be worth $3.3 billion in fiscal year 2024.

Down more than $250 million from the previous financial year, the $3.3 billion is shared between Seven, Nine and Ten and their subsidiaries.

There are no figures available to assess the revenues of each network individually.

Free-to-air television faces competition from streaming services like Netflix and a depressed advertising market. Shorten is right when he says the channels are in “diabolical trouble”: on Wednesday, Seven West Media reported a 69 per cent fall in profits.

But it's not all doom and gloom. Nine Entertainment has announced that it generated healthy advertising revenue for the Paris Olympics, raking in a whopping $160 million over the two weeks.

However, the advertising market is down 8.1% compared to the same period last year.

How Much of the $3.3 Billion Pie Comes from Gambling Ads?

The Australian Communications and Media Authority puts the figure at $162 million, which is unlikely to be a significant portion of the $3.3 billion.

ignore newsletter promotion

after newsletter promotion

But commercial television lobby Free TV does not accept Acma's figure, saying the real figure is closer to $200 million.

"At a time when there is increasing pressure on commercial TV broadcasters to fund their entire operations through advertising revenue, that's what we're required to do under our legislation, every dollar counts," Free TV chief executive Bridget Fair told ABC Radio.

"The question we want to address is: how do we ensure the sustainability of the sector, so that every Australian can continue to watch the Olympics, as we have for the last two and a half weeks?"

What do opponents of gambling say?

Charles Livingstone, an associate professor at Monash University, believes a partial ban on gambling advertising is not adequate.

“Media and sports organisations say that an advertising ban would deprive them of the revenue they need,” Livingstone said. “But the price of this concession to vested interests is continued harm to families and communities.”

Greens Senator Sarah Hanson-Young says Australia can support sport and public interest journalism without gambling advertising.

In June 2023, the Guardian announced that it would no longer accept gambling advertising on all of its global platforms.

Hanson-Young said: "Experts have told us we need to ban gambling advertising, just like tobacco advertising.

"Labor will be tested on this issue in the Senate when Green amendments for a total ban on gambling advertising, in line with Peta Murphy's recommendations, are voted on."