Tabcorp ‘clearly emboldened' by government inaction on gambling ads, David Pocock says
Tabcorp's increased use of promotions and special offers is just one part of its broader plan to reinvigorate its betting presence in pubs and hotels, which became dated as the company overwhelmingly focused on the booming online industry.
In addition to an ongoing trial of in-play betting at venues in New South Wales, Tabcorp plans to invest in significant renovations to its gaming rooms inside pub and clubs. To offset those costs, it plans to no longer offer a commission to venues that generate less than $10,000 in bets a week.
The proposal has triggered a fight with the powerful lobby group for pubs, the Australian Hotels Association, which believes it would unfairly punish about 650 smaller venues already struggling to stay afloat.
Tabcorp argues it is a modest hit of about $160 a week and that inducements and renovations will help venues reach the $10,000 threshold.
The strategic use of promotions that can only be claimed in pubs and clubs has concerned some long-term critics of the gambling industry, who believe these offers lead to increased harm. Regulators in NSW and Victoria have also said they were watching closely.
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A federal parliamentary inquiry, led by the late Labor MP Peta Murphy, called for inducements to be banned. The inquiry's June 2023 report focused on online gambling but warned the promotions encouraged riskier bets, higher losses, and undermined harm minimisation messages.
Tabcorp's promotions, which reportedly include happy hours and special offers to get people inside pubs, have been described by the company as a rebalancing of its overall inducement offering, with focus shifting away from online betting.
The independent ACT senator David Pocock said the Albanese government's failure to formally respond to the Murphy review and ban inducements had 'clearly emboldened the sector'.
'Research shows inducements have contributed enormously to children and young people believing that gambling is a risk-free and normal part of enjoying sport, which is the exact association we should be working to break,' Pocock said.
Pocock said Tabcorp's plan to use inducements to help boost profits was 'unsurprising when you consider the government has so little urgency in implementing the 31 recommendations of the Murphy Review'.
Martin Thomas, the chief executive of the Alliance for Gambling Reform, also believed the federal government's hesitancy to restrict gambling ads and inducements had emboldened the sector.
'Australia's infamous title as the biggest gambling losers in the world will only get worse without action, as reflected in these latest moves by Tabcorp,' Thomas said.
'The federal government has a golden opportunity to implement all 31 recommendations of the Murphy Review but the report so far has gathered dust for more than two years.'
Samantha Thomas, a professor of public health at Deakin University who has conducted research on the impact of inducements, said they are an 'influential form of marketing because they create a perception that the gambling company is giving you something and that gambling has less risk or no risk attached to it'.
'The lack of significant regulator action on inducements only benefits the gambling industry and their ability to extract more and more money from the community.'
A spokesperson for the communications minister, Annika Wells, said 'the Albanese government has undertaken some of the most significant gambling harm reduction measures in Australian history'.
'We know there is more to do, and we will continue with this work,' the spokesperson said.
In response to criticism of its inducement proposal, a Tabcorp spokesperson said it was 'the most regulated wagering company in Australia'.
'As the state wagering licensee, we work more closely than any other operator with regulators and governments on compliance and harm minimisation,' the spokesperson said.
'Our retail staff undergo compulsory compliance training to identify potential problem gambling behaviour and how to safely intervene.'
The Victorian Gambling and Casino Control Commission, which regulates Tabcorp, said it would be briefed on the proposal in coming weeks.
'The VGCCC will and does intervene where gambling operators fail to comply with their obligations, including in relation to gambling harm,' a spokesperson said.
A Liquor & Gaming NSW spokesperson said 'the promotion of gambling, including inducements to gamble, is subject to strict regulatory controls aimed at minimising gambling harm'.
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