An analysis of legislation and regulation surrounding live odds advertising and implications for broadcasters and social media outlets.

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1 An analysis of legislation and regulation surrounding live odds advertising and implications for broadcasters and social media outlets. Betting on sports and specifically the advertisement of live odds during sporting matches and has been the subject of public concern and media attention for sometime now. (IGA Inquiry 2013)(King.et.al 2009). Live betting is a fairly new and popular form of gambling and allows adults over 18 years of age to wager on sporting events while the event is taking place (Huang 2011)(TAB 2013). Currently gambling advertisements in sports television broadcasts are regulated by a self-governed code of practice, administered by the broadcasting regulator, the Australian Communications and Media Authority (ACMA). As sports is an intrinsic part of Australian society (Crawford Report. 2010) there have been moves to further regulate live odds advertising, especially as there is community concern over the effect children and youths have to sustained gambling advertising exposure. Recently the Federal Government has announced a directive to broadcasters to enact change in codes of practice to meet community concern over live odds broadcasting (Office of the PM 2013). In relation to live odds being broadcast over social media, current laws do not impose any restriction on odds being published. Live odds are the prices set by a wagering company on certain plays depending on the sport being watched. For instance in a soccer match, live odds may be available for the next player or team to score. In tennis it may be who will win the next set. The advent of live sports betting has come about due to major advances in information technology, specifically Internet infrastructure (Gainsbury, Wood et.al 2012). The online wagering market allows updated live odds to the second. Furthermore, users are able to utilise mobile devices to a greater degree through websites designed for tablets and apps available for smartphones, proliferating access to sports gambling. These advances are also helped by banking technology which allows users to deposit money into their accounts instantly, twenty four hours a day. Currently, advertising of live odds are being utilised as integrated segments during sports broadcasts and also during ad breaks whilst sporting events are taking place (Table 1). Furthermore, live odds are also published through betting agencies social media platforms such as Facebook and Twitter. Apart from live odds, advertising may also feature betting on other matches. For example, during channel 7 s AFL coverage, post match discussion will always feature upcoming match odds, line odds (a teams predicted winning margin) and other bet types such as odds on the league s leading goal kicker. While traditional betting advertising, such as sponsor logo s on clothing and signage does not coerce a viewer into realising the odds of a match in monetary value, it is still a highly visible form of advertising that may have the same effects that integrated broadcasting may achieve (Gainsbury et.al 2012). During the 2012 Indian tour of Australia, Bet365 was the official sponsor, with advertising placed on boundary ropes. Every time a four was hit the camera would show the Bet365 logo as the ball touched the boundary (Brettig, 2013). The integrated advertising combined with the traditional sponsorship signage on boundaries and players uniforms has seen gambling advertisement saturate the sports arena. A major catalyst for a recent government announcement to review advertising standards was the increased broadcast presence of Tom Waterhouse, representing his

2 online bookmaking company (Bibby & Swan 2013). The company s sponsorship of the 2013 NRL season saw Waterhouse on the commentary panel, discussing the game in relation to odds offered by his business. With sports wagering increasing in market share of gambling revenue (Pascoe 2013) and online models of business becoming the norm, integrated advertising is a form of advertising that is taken advantage of by the major players in the market. As society moves towards an increasingly digital economy (Productivity Commission 2010) so too does a new generation of users, increasing usage of online platforms and markets as the technology takes a larger role in day-to-day life. During 2009 Australians were the heaviest users of social media in the world (Nielsen, 2009), with the April 2013 figures showing 15.7 million Australians as being online (Nielsen, 2013). Of these Internet users, the most at risk of falling into problem gambling are adolescent youths, particularly young males (Derevensky & Gupta 2007). The combination of a popular national past time being heavily saturated with live odds and the increase of online wagering options gives a clear link to the dangers of live odds and wagering advertisements during sports broadcasts. Furthermore, due to the widespread appeal of sporting events, it is inevitable that youths will take in these advertising messages (Lamont et al. 2011). Young people are more likely to partake in online gambling for a variety of reasons. These include being early adopters of new technology and familiarity with using the Internet, and many youths having flexible time restraints leading to more recreational time (Derevensky & Gupta 2007). Young males are the highest risk group for online gambling addiction (Gainsford, 2012) and are also a large market for watching live sports broadcasts. A user of a wagering website can now be enticed to bet whilst watching live sports, by using an online service. Further to this, the use of social media by bookmakers also means that there is an extra online presence to contend with. The line between social media and wagering services are now becoming blurred with the introduction of social betting services such as smarkets ( and betable ( These services act as a betting website and online community, with users betting against other users, rather than the house. The services are centred around communities of online users, and encourage interaction in a familiar style social platform. While under Australian legislation it is illegal for these websites to serve Australian customers, there are no restrictions or legislation making using these websites illegal (Interactive Gambling Act 2001)(Gambling Act). The Gambling Act encompasses regulations on all forms of gambling; including sports wagering at a national level, however its main focus in relation to online markets and services is the provision of casino games and pokie machine simulators. This is evidenced by its exclusion of sports wagering in S8 (1)(a) of the Act, which allows for the wagering on sporting matches Australia wide. The Gambling Act regulations stipulate the prohibition of advertising on online forms of gambling, except for wagering and lotteries. Much of the leeway in regards to allowing online sports wagering is the cultural past time of gambling, supported by the place of events such as the AFL grand final and the running of the Melbourne Cup as intrinsic to the national psyche (Productivity Commission 2010). Further to this the ratio decidendi of the Federal Courts in Betfair pty ltd v Western Australia (Betfair) paved a precedent for the propagation of wagering services being given national

3 access as a constitutional matter under fair trade. The decision meant that states could not prohibit wagering services form operating in their jurisdiction. However the decision in Betfair did not take power away from state regulation of wagering. Each state also issues licenses to bookmakers to allow their own regulation and to also, importantly, impose a method of tax collection. With many different legislative authorities controlling betting operations, the standards to be followed for advertising guidelines in regards to wagering can be found in over 6 Acts in varying states and territories. In South Australia, Licenses to operate wagering companies are governed by the Authorised Betting Operations Act 2000 (SA) (Betting Operations Act), however regulation of the industry is controlled by the Independent Gambling Authority, which uses legislative instruments provided by the Independent Gambling Authority Act 1995 (SA). Included is the Advertising (bookmakers) Code of Practice (IGA- Code of practice). While the code sets out the reasonable standard and various tests to determine the extent and availability of wagering advertisements in good taste, ultimately the legislation is inferior to Commonwealth legislation. Therefore when conforming to community standards with live odds broadcasting, advertising need only follow nation wide mandated advertising standards. Currently this code of practice is administered by ACMA for free to air broadcasts through the Commercial Television Industry Code of Practice (CTICP) (ACMA). The precedent brought through Betfair, and with Commonwealth jurisdiction taking authority over inferior legislation, it is difficult for states to legislate in favour of the public view, unless supported through a national framework, such as the case recently when South Australia moved to ban live odds (The Australian, 21/5/2013). Therefore ACMA play an important role in the regulation of live odds advertising. The statutory function of ACMA gives them authority to govern codes of practice in relation to broadcasting and to enforce codes. Authority is given under the Australian Communications And Media Authority Act 2005 (Cth)(ACMA Act) under S10 (1). This includes the authority to regulate broadcasts on television, radio and the Internet as well. The Broadcasting Services Act 1992 (Cth) also provides under section 125, that a representative broadcasting group may draft a code of practice, undertaken by FreeTv (freetv.com.au) who were responsible for the CTICP. One of the codes main functions is to regulate the content of commercial television in accordance with current community standards (S 1.1.1). While this covers television broadcasting, there is no counterpart to Internet advertising. Regulation of advertising on the internet, including on social media is largely under the prerogative of the Australian Competition and Consumer Commission, under the Competition and Consumer Act 2010 (Cth) however the Commission only addresses cases of false, misleading or deceptive advertising. (ACCC). Therefore the only rules that can govern social media advertising are the platforms on which they are advertised. The peak industry body for wagering companies, the Australian Wagering Council (AWC) argues that people accessing information on social media are giving implied consent to the advertising by liking pages on Facebook or following company accounts on Twitter. However, there is no law governing the advertisement of these companies on social media platforms. Facebook do set guidelines that gambling advertisements must be gated to 18 year olds and above, and that advertisements cannot breach a countries law, indemnifying Facebook from any losses (Facebook 2013), however as no specific legislation has been passed, and no

4 common law covers this ground, advertising via social media is a grey area that the law is yet to consider. Furthermore with the advent of social media sites as being an integral part of many Australian s internet experience and the convergence of broadcasting and digital media, broadcast providers over the internet may still be exempt form traditional broadcast restrictions, especially if the broadcast is from overseas. Already Fox Sports provide apps for watching the English Premier League and the Australian A-League on smartphones and tablets. Again, like social media, internet based broadcasts are not legislated for, and potentially live odds may be used as a part of the service or advertised to the service providers liking. Following the Federal Government s moves to seek change in advertising practices in relation to live odds betting, FreeTv completed mandatory Government and public consultation. The current proposed amendments to go through include: the prohibition of live odds during live play; the ban of commentators and guests from advertising live odds 30 minutes before and after an event as well as during breaks in play. Exceptions are in place to allow advertisers to still promote live odds before, after, in scheduled breaks and during stops in play as long as the advertisement is clearly identified and the promotion is not involved with someone commentating or involved in the broadcast during the sporting event (FreeTv amendment, 2013). The amendments look to inhibit the promotion of live odds as an integrated form of advertising during sports broadcasts. However, live odds advertisements are still allowed, albeit during breaks in play. Concerning social media or online formats of delivery, no recommendations are made. It could be argued that the sponsorship of sports, and their broadcasts by wagering companies bring much needed money to physical activity and the flow on effects that can have to a grass roots level. Furthermore, prohibition on a certain activity such as wagering can inhibit a person s liberty, and freedom to enjoy a legal activity. However, it must be noted that the ultimate aim for advertising is to increase awareness of their product and to increase revenue (Lamont et.al. 2011). For a wagering company to look for increased revenue during an event broadcast to a wide audience, television and online mediums certainly need to be monitored due to the varied demographic it can reach, and to also mitigate the impacts of problem gambling. Though the Federal Government, ACMA and FreeTv s response to the public mood was swift concerning live odds broadcasts, further research into the impacts digital convergence will have on sports broadcasting and advertising as well as the implications for social media platforms being used by wagering companies is required. As the shift to a larger digital economy takes place, safeguards must be implemented to keep pace with the public interest. Furthermore, legislation must take into account the digital marketplace as a fast growing and lucrative area that can be exploited by companies, minors and problem gamblers. Legislation must be proactive in dealing with all forms of live odds advertising that can reach a wide audience.

5 Table 1. Frequency of wagering advertisements over 2 weekends of the AFL season. Match Pre Match Break in Play 17th - 19th May West Coast v Nth Melb 3 14 Hawthorn v GWS 2 11 Gold Coast v Wst bulldogs th - 26th May Sydney v Collingwood 4 19 Port Adelaide v Geelong 2 11 Fremantle v Melbourne 2 9 Three matches were viewed on Channel 7 free to air coverage of the AFL. One match was picked on Friday, Saturday and Sunday. Frequencies of odds betting advertisements were recorded before play started, and during breaks in play, including half time and stoppages. Most odds advertised were TAB adverts under the title Market Updates. Not recorded were wagering companies advertisements that did not display odds. During live play, live odds were posted as Twitter updates a maximum of two times by Sportsbet, and only once by Betfair and TAB. Due to the Federal Government announcement, live odds were not displayed at all during live play at all when this study started. Post match, channel 7 displayed odds for upcoming matches and as part of the integrated broadcast. The segment usually ran for around 4 minutes, and took place approximately 15 minutes after play had stopped.

6 Bibliography King, Daniel ; Delfabbro, Paul ; Griffiths, Mark. The Convergence of Gambling and Digital Media: Implications for Gambling in Young People. Journal of Gambling Studies, 2010, Vol.26 (2), pp [Peer Reviewed Journal] accessed through: /fulltext.html TAB Live betting glossary Accessed through: Lamont, M, Gainsbury, S, Hing, N Gambling on sport sponsorship: A conceptual framework for research and regulatory review. Sport Management Review, [Online]. Issue 14, Available at: cdn.com.proxy.library.adelaide.edu.au/s /1-s2.0- S main.pdf?_tid=9d6188c8-ae86-11e2-bb8d aab0f01&acdnat= _ e9398b563cb59921a5a63b [Access ed 15 April 2013] Gainsbury, S, Wood, R, Russell, A, Hing, N, Blaszczynski, A. A digital revolution: Comparison of demographic profiles, attitudes and gambling behaviour of Internet and non-internet gamblers, Computers in Human Behaviour, Volume 28, Issue 4, July 2012, Pages Accessed online through: ACMA, Broadcasting Codes and Schemes Index Accessed online through: Australian Government Independent Sports Panel The Future of sport in Australia. (The Crawford Report) [ONLINE] Available at: DD4CA E4C45/$File/Crawford_Report.pdf. Swan, Jonathan and Bibby, Paul. Gillard moves to ban live odds, restrict gambling ads during games. Sydney Morning Herald, 26/05/2013. Accessed online at: Australian Communications and Media Authority Act 2005 (Cth) Broadcasting Services Act 1992 (Cth)

7 Interactive Gambling Act 2001 (Cth) Independent Gambling Authority Act 1995 (SA) Authorised Betting Operations Act 2000 (SA) Betfair pty Ltd v Western Australia (2008) 234 CLR 418 Oreb, Naomi. Betfair case note. Case Note. Accessed online through: ACMA, Commercial Television Code of Practice. mmercial%20television%20industry%20code%20of%20practice% pdf Brettig, Daniel, Betting Ads in Australia s sight. ESPN cricinfo. 8/2/2013. Accessed online at: Nielsen, State of Media Nielsen Agencies. Accessed online at: Nielsen Agencies, Nielsen online landscape review April Accessed online at: Derevensky, JeffreyL. Gupta, Rina. Internet Gambling Amongst Adolescents: A Growing Concern International Journal of Mental Health and Addiction, Volume 5, Issue 2. Springer-Verlag. Accessed online at: Independent Gambling Authority Advertising Code of Conduct. FreeTv Code amendments. Accessed online at: _Explanatory_Note_-_Live_odds.pdf FreeTv Commercial Television Code of Practice. Accessed online at: dustry_code_of_practice.pdf ACCC. Guide to social media advertising. Accessed online at: Facebook, Gambling Advertising code

8 Australian Wagering Council Betable Smarkets Huang, Xinzhuo, William Knottenbelt, and Jeremy Bradley. "Inferring Tennis Match Progress from In-Play Betting Odds." (Final Year dissertation), Imperial College London, South Kensington Campus, London, SW7 2AZ (2011). Accessed online at: Qld Government, Australian Gambling Data and Statistics. 28 th Edition, Accessed online at: Coulter, Mark. South Australia s move to ban live sports betting in doubt: Conroy. The Australian 21/5/2013. Accessed online at: Gainsbury, S, Internet Gambling - current research findings and implications.. 1st ed. Southern Cross University: Springer US. Productivity Commission Gambling [ONLINE] Available at:

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