Australia’s aim to decrease gambling ads while TikTok expand its pilot program

As efforts to tighten control on gambling advertisements persist in the country, TikTok continues to enjoy an exemption from these regulations.

Australia’s decision-makers find themselves caught in a clash of ideals, struggling to reach a consensus. While there is a federal movement to implement a complete ban on gambling advertisements on TV, including extending the current nightly watershed for sportsbooks, TikTok is going against the tide.

Despite facing a ban by state lawmakers in Montana, TikTok is expanding its campaign to allow gambling ads. Having already partnered with Sportsbet, TikTok is now including two more sports betting operators in its list of collaborations.

Concealed and disregarded

Zoe Daniel, an independent member of parliament, is advocating for the complete elimination of gambling advertisements on television. Currently, sports betting ads are prohibited from airing between 5 AM and 8:30 PM each day, as well as during live games.

However, Daniel believes that these restrictions are insufficient in reducing young people’s exposure to gambling ads. She argues for a permanent ban on these ads, similar to the legislation that prohibited tobacco advertisements nearly 50 years ago. The tobacco ad ban eventually led to a significant decline in smoking rates, although it took several decades to witness the full impact.

Daniel recently introduced a bill that aligns closely with the tobacco ad ban, but the reactions to it are still limited. The government is currently conducting a study on gambling advertisements, which will likely influence the bill’s progress once the research is concluded.

Meanwhile, another separate effort to reduce gambling ads is gaining momentum and has a specific deadline attached to it.

New South Wales plunges into darkness

Starting from September 1, non-casino establishments such as pubs and hospitality venues in New South Wales will be required to remove certain types of advertising related to slot machines. Any signage that advertises or indicates the presence of gambling will be prohibited.

The ban encompasses various phrases, including “VIP Room,” “VIP Lounge,” “Golden Room,” and others. It also forbids references to slot machines, as well as the use of imagery depicting coins, specific gambling-related symbols, and even dragons.

This action is part of the commitments made by the newly elected government, and property owners will receive official notifications regarding the changes this week, initiating the countdown to comply.

In exceptional cases where a property is unable to meet the deadline and can provide valid reasons, the government may grant a one-time 90-day extension. However, no further extensions will be allowed, and violations of the new regulations may result in fines of up to AUD11,000 (US$7,300) per offense.

TikTok remains unbeatable

Despite ongoing efforts by the US federal government to ban TikTok due to data privacy concerns, the social media platform continues to thrive without any hindrances in other parts of the world.

In Australia, where Statista reports a user base of over 8.3 million, TikTok has been collaborating with Sportsbet in a pilot program to permit gambling advertisements. Surprisingly, this program is now expanding, despite the increasing opposition to gambling advertisements across the country.

According to several Australian media outlets, TikTok is broadening its program by partnering with Neds, owned by Entain, and Dabble, a budding sports and social betting platform.

Both TikTok and the operators involved assert that the pilot programs are under strict control. TikTok’s representative claims that the ads are targeted exclusively at individuals aged 21 and above.

However, it remains unclear how TikTok effectively achieves age targeting since the platform does not require age verification during the registration process, presenting an inherent challenge in ensuring compliance with age restrictions.