Updated ,first published
Prime Minister Anthony Albanese will be forced to cede ground on gambling reform after alarming testimony about addicts lured with drugs, escorts and thousands of dollars in free bets convinced the Senate that Labor’s laws were not good enough.
The Coalition is likely to push the government into stricter regulations of gambling inducements – offers like bonus bets that encourage people to wager – as well as a tightening of advertising rules. The Greens and crossbench have already demanded amendments, meaning the laws won’t pass without some changes.
Communications Minister Anika Wells has spoken with both her Coalition and Greens counterparts this week. “These are significant and balanced reforms,” a spokesman for the minister said. “We have had constructive discussions with the Coalition and the Greens.”
It will be an embarrassment for Albanese if the government is forced to review the package, given he torpedoed a clampdown proposed by former communications minister Michelle Rowland and overrode calls from within the Labor caucus for stronger restrictions.
On top of the claims about legal and illegal inducements, this week’s inquiry into Labor’s gambling package heard the regulator had not been given new resources to enforce the crackdown on online advertising, and had not yet defined which influencers would be banned from promoting gambling under the new laws.
Communications department officials were also unable to explain why the government had settled on permitting three gambling ads an hour on broadcast television – and whether there was evidence behind it.
Coalition communications spokeswoman Sarah Henderson said the Albanese government had come up with a bill that was “riddled with deficiencies and must be significantly amended”.
“Gambling addiction is taking an enormous toll on so many Australian families. After three years of delay, deflection and deception over gambling reform, the Albanese government’s failings on this bill are inexcusable,” Henderson said in a statement on Wednesday.
“While the Coalition is working to finalise crucial amendments to this bill, Australians can be assured we won’t be supporting this deficient legislation in its current form. We also won’t cop Labor’s spin on gambling reform.”
Many Labor MPs have wanted the government to go further. The gold standard among gambling reform advocates is the bipartisan 2023 report led by the late Labor MP Peta Murphy, which recommended a national regulator, banning betting inducements, and a total advertising blackout.
But media companies and sports codes pushed back, arguing their industries would be damaged and that most problem gambling was because of poker machines and lotteries, not betting on racing and sport.
The Albanese government took more than 1000 days to respond to the Murphy report. When it did, during the budget day lockup on May 12, those key recommendations were omitted.
Instead, Labor wants to restrict television ads to three per hour. Online platforms would have to verify a user is over 18, and offer them an opt-out button, to show gambling ads – but if those conditions were met, they could show unlimited gambling ads at all times of day and in breaks in play during live sport, which is something they are currently banned from doing.
Henderson said that represented a weakening of the former Coalition government’s advertising blackout for online platforms during certain hours, while also raising privacy concerns.
An option being pushed by gambling reform advocates and Liberal MP Simon Kennedy is for an “opt-in” online model instead.
Henderson said the bill’s failure to deal with gambling inducements was also a problem.
The inquiry heard one example where a man was given $50,000 in free bets despite losing almost $500,000 in 33 days. Testimonies from reform advocate Tim Costello and former rugby league player Luke Bateman said betting companies had lured VIPs with thousands of dollars worth of free bets, drugs, escorts, hotels, grand final tickets and alcohol.
These allegations were rejected by the peak body, Responsible Wagering Australia, as well as betting giants Sportsbet and Tabcorp.
But Henderson said it showed a need for tougher action.
“The bill ignores gambling inducements which are causing immeasurable harm to some Australians. There is mounting evidence legislative action is required to combat predatory inducements which target high-risk or vulnerable gamblers,” Henderson said.
“It is clear the government has completely dropped the ball on delivering meaningful, workable reforms.”
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