The political case for a national gambling regulator

The national Labor conference in Adelaide is set to influence possible changes in the ruling party’s approach to gambling reform, including a push for a national regulator and a move to ban betting inducements.

While legislation has already been put before parliament confirming the details of the intended changes to gambling advertising legislation announced by Prime Minister Anthony Albanese in April, its passage through both houses has been delayed by a Senate review which is set to report back by August 17.

In the meantime, gambling reform is expected to be on the agenda when 400 conference delegates meet to discuss and vote on Labor’s 126-page draft platform this week.

The conference includes 150 rank-and-file delegates elected by local branches, which are expected to demand Labor goes further in its gambling reform agenda.

While there is a sense that senior party leadership is willing to consider extending restrictions on the timing and frequency of broadcast ads, there is also support for new policies to be drawn up around the establishment of a national regulator and the banning of inducements.

Both initiatives were part of the 31 recommendations of the You Win Some, You Lose More report, which was released in 2023 and chaired by the late Labor MP Peta Murphy.

That bipartisan parliamentary inquiry into online gambling put the establishment of a national gambling regulator at the centre of its report. It was the third recommendation and featured in 13 others, making it a crucial plank of the report.

It proposed not only that the government “establish national regulation and a national online gambling regulator with the sole purpose of reducing harm and with responsibility for all licensing and regulation”, but also that a levy be imposed on online wagering service providers to fund it.

Gambling in Australia is largely regulated by the state or territory in which the company is licensed, with federal oversight over aspects such as consumer protection and advertising. The majority of government revenue derived from gambling, including Point of Consumption Tax (POCT), is paid directly to the states.

Recent analysis by The Straight revealed Australia’s state and territory governments are banking $10.5 billion a year in gambling taxes, with $1.27 billion of that coming via (POCT) levied on racing and sports betting.

There has been criticism of the current system of licensing and regulation, especially in the wagering sector, where the majority of corporate bookmakers have agreements with the Northern Territory.

While gambling reform advocates have called for a national regulator, the move has also had support from key punters and consumer advocate groups, who believe the inconsistency around gambling rules and regulations has disadvantaged them.

The NT regulator, the Northern Territory Wagering Commission, has been criticised as too slow to respond to complaints and was characterised in a Four Corners report last year as too close to the industry it regulates.

Racing bodies across Australia have previously expressed misgivings about a national gambling regulator, concerned that an additional level of regulation would create extra costs and suppress the revenue that funds much of the industry.

The current reforms put forward by Communications Minister Anika Wells beef up the powers of the Australian Communications and Media Authority, rather than set up a separate body, although the government has also proposed measures to get the gambling industry to pay for the additional compliance measures.

Gambling reform is expected to be on the Labor conference agenda on Friday, with a strong push from grassroots members for the ruling party to go further.

A ban on inducements, such as deposit matches and bonus bets, could also be considered for the reform agenda.  

That initiative was an emphatic recommendation of the You Win Some, You Lose More report.

“The Committee recommends that the Australian government prohibit all online gambling inducements and inducement advertising, and that it do so without delay,” it said.

Those changes were not included as part of the Albanese government’s current suite of changes, but according to the ABC reporting ahead of the conference, will be raised for discussion.  

During previous debates around gambling reform, both the wagering and racing industries have rallied hard against an inducements ban and said it could result in a 30 per cent downturn in turnover.  

In 2024, Racing NSW said “offering of generosities such as bonus bets should be protected as they are a reward for punters and not an inducement”.

Ahead of the conference, Prime Minister Albanese said the Labor Party continued to “evolve and develop”.

“We change with the times, and the party conference will reflect that over the coming few days in developing our platform that we’ll continue to take forward,” he said.

“It’s an opportunity for our party members to have a direct say in the direction of the country and for us to engage.”