Key facts
- Labor's proposed legislation to ban online gambling inducements faces significant opposition from the gambling industry.
- The Coalition and Greens are pushing for stricter controls on these inducements.
- Allegations of gambling companies providing drugs and sex workers to problem gamblers were presented during a Senate inquiry.
- The gambling industry argues that inducements are for product differentiation and customer loyalty, not illegal activities.
- A previous parliamentary report recommended an immediate prohibition of all online gambling inducements.
The Australian Labor government is navigating a complex legislative battle over proposed controls on online gambling inducements, facing potential opposition from powerful gambling corporations. Communications Minister Anika Wells has indicated a willingness to negotiate amendments to a bill aimed at limiting online sports betting advertising, despite reports suggesting a firm stance.
The debate has been intensified by sensational evidence presented during a two-day inquiry, where former NRL player Luke Bateman and anti-gambling campaigner Tim Costello alleged that gambling companies provided problem gamblers with illicit substances and sex workers to encourage continued betting. Representatives from major betting companies who appeared later denied these claims, stating there was no evidence to support them.
Labor's proposed legislation is also influenced by a June 2023 report from a parliamentary committee, led by the late MP Peta Murphy, which recommended the immediate prohibition of all online gambling inducements and related advertising. Furthermore, Labor's national conference recently agreed to explore measures to prevent online gaming and social media platforms from offering "embedded inducements" that could normalize gambling among children.
Jerome Laxale, a Labor backbencher, has urged the opposition to propose constructive amendments to strengthen the ban on financial incentives offered to punters. The acting opposition leader, Jane Hume, confirmed that the shadow communications minister, Sarah Henderson, is engaged in negotiations for new controls, emphasizing the need to protect vulnerable individuals while acknowledging gambling as a legal pastime.
However, Kai Cantwell, CEO of the industry lobby group Responsible Wagering Australia, has stated that further bans on inducements are unacceptable to the gambling industry. He argued that the Senate committee is conflating appropriate promotions with illegal inducements, asserting that inducements are used for product differentiation and customer loyalty, and that account-based gambling allows for tailored consumer protections based on betting trends and risk factors.