Monday Marketing Watch – ACMA sweeping changes for fresh Australian advertising landscape

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The use of celebrities, influencers and notable persons will be banned as part of Australia‘s sweeping changes to advertising guidelines.

Amendments to Australia’s Interactive Gambling Act 2001 were enacted earlier this year, as Prime Minister Anthony Albanese and his Labor government faced increasing pressure to make changes to advertising laws.

Among those is Section 62W, which states that ‘notable persons’ will not be allowed to appear in advertising content for licensed operators.

The Australian Communications and Media Authority (ACMA) has now confirmed that this relates to current and former sports players and athletes, celebrities, social media influencers and ‘prominent individuals’ or those ‘ included in a class of persons that the Minister determines’.

Restrictions on the use of celebrities and influencers are common in many markets around the world. However, the depth of these guidelines is particularly notable.

The guidelines state: “The definition of a notable person is purposefully broad to capture a wide range of notable people that may be used by [operators] to encourage a person to gamble through association. 

“It is not restricted to notable persons that appeal to children, as notable people are also likely to appeal to individuals at risk of gambling harm, as well as growing segments of the online wagering market, such as younger men. 

“Wagering advertising, whether broadcast or provided online, must not feature a notable person, and [operators] must not enter into contracts or arrangements or arrive at an understanding that relates to the sponsorship, participation in or involvement of a notable person in connection with the promotion of wagering advertising content in Australia.” 

The new rules will apply to marketing across all platforms, including broadcast television, radio, news websites, online games and social media.

When assessing the status of an individual, the ACMA will consider the context of an individual’s appearance in the advertisement, their public recognition and profile, media exposure, professional achievements and ability to influence.

While the definitions of sportspeople and celebrities are widely recognised to a certain extent, the ACMA has specified that the ‘prominent individuals’ provision can relate to those who influence a specific community or demographic, allowing the rules to encompass figures such as former local politicians or community leaders.

The definition of influencer is just as broad, as content creators, vloggers, podcasters and brand ambassadors all fall under this scope.

There is also no prescribed number of followers that a person must have to be considered an influencer, as the ACMA will consider an individual’s ability to influence the actions or decision-making of others because of attributes such as profile or reputation. 

Racing has been afforded a carve-out within the rules, however, as celebrities and sports people will be able to appear in advertisements that relate solely to racing and will be broadcast or datacast on a dedicated racing channel or provided on a dedicated racing online content service.

The sports media landscape will be particularly hard hit by the changes.

A large number of podcasts covering the country’s major sporting codes, as well as current and former players, have relationships with gambling operators. Meanwhile, sports teams will no longer be able to carry gambling sponsors on their kit, shutting down another avenue for gaining visibility for operators.

Broadcasters alone are expected to lose AU$90m in revenue, as the new rules also prescribe a maximum of three broadcast gambling ads per hour and restrictions during sporting events.

Although the reforms have fallen short of the complete advertising ban called for by some sections of Australia’s political landscape following the publication of the Murphy Report in June 2023, industry experts have warned that tightening restrictions risk emboldening Australia’s black market.

Speaking at SBC Summit, Jamie Nettleton, Partner at Addisons, likened current momentum in the gambling industry to changes levied on Australia’s tobacco industry related to increased taxes and advertising restrictions.

He said: “What has happened in two to three years is that 80% of the Australian market in tobacco is now illegal, and essentially it is run by crime. I’m not saying it’s apples and apples in respect of tobacco and gambling, but it indicates some of the dangers which can occur in respect of any market, let alone a regulated market like Australia.”