Live Betting and Television: The Future Is Less Profitable

This week, Opposition leader Tony Abbott came out against advertising betting odds during live sporting matches, citing the political crutch for all popular campaigns – “for the children”. Mr Abbott has said that unless the industry self-regulates this issue, should he come to power in September he will move to ban live betting.

Whether you are for or against this, it will affect a huge part of the Australian television sporting landscape. For years now we have experienced live odds during play for cricket, being advised of the “favourite” for tennis matches, and televised horse racing is nothing but betting odds.

What has come about as the defining issue around this is bookmaker Tom Waterhouse’s inclusion with the commentary team of Channel Nine’s NRL coverage. After what is being purported as a $50 million deal (probably closer to $12.5m), Mr Waterhouse was ensconced with league luminaries such as Ray Warren, Peter Stirling, and Gus Gould, armed with a Channel Nine microphone, and giving opinion on play and offering live odds as the game progressed. 

After initial outrage, the deal was changed slightly and Mr Waterhouse became a guest commentator and his microphone was replaced with a generic one. The issue is still moving, with Free TV Australia (representing Seven, Nine, and Ten) proposing restrictions on live odds during play, while still making allowances for interstate matches and official advertising breaks. While Independent Senator Nick Xenophon is touting the phrase "If you can't have gambling advertising during other G-rated programs, why should sporting programs be exempt?", the Free TV Australia code for gambling does not explicitly say that – only that there are certain times that gambling ads cannot be displayed, with the exception of News, Current Affairs, or Sporting Events (to see the current Free TV placement codes, click here).

All issues aside, what this comes down to is the monetary value inherent in gambling advertising. Many sporting codes rely on gambling advertising money to stay afloat, as well as networks who promote the sporting codes. It is reminiscent of Winfield’s cigarette sponsorship of rugby league from the early 1980’s to the mid-1990’s, when the federal government passed the Tobacco Advertising Prohibition act:  there will be a black-hole of advertising money that would need to be filled, and no shortage of advertisers to fill it.