Australian operator Tabcorp recently made two noteworthy announcements: the first is that the company is exploring its legal options with regard to a supposed deal that was made between fellow operator Entain and the New South Wales chapter of the Australian Hotels Association (AHA NSW), which undermines an existing agreement Tabcorp made with the NSW government.
The second came from Tabcorp CEO Adam Rytenskild, who indicated during a recent regulatory conference in Sydney that the company plans to pull its advertising from primetime television in the country during peak hours (6:30 a.m. to 8:30 p.m.).
Beginning with the legal controversy, the trouble first arose in October of last year, when Entain and AHA NSW announced that their intention to “bring digital wagering competition to New South Wales for the first time,” meaning that AHA NSW would provide “an opportunity for Entain Australia to promote its digital wagering brands—Ladbrokes and Neds—in the state’s pubs through a new advertising and sponsorship arrangement.”
The problem with such a deal, from Tabcorp’s perspective, is that it seemingly violates a previous agreement the company signed with the NSW government that gives it the sole right to offer gambling in NSW bars and clubs.
On March 15, the NSW Supreme Court seemed to agree with Tabcorp’s position, ruling that Entain and AHA NSW should produce documents detailing any legal advice they received surrounding the legality of such a deal. The court also said the documents should show the layout of the proposed Ladbrokes and Neds betting lounges and any other evidence that might support a previous claim from Entain Australia CEO Dean Shannon that the deal would not interfere with Tabcorp’s arrangement.
In a statement reported by Inside Asian Gaming, the company said it is “ concerned the arrangement between Entain and AHA NSW, depending on all the facts, raises a risk that Entain and/or AHA NSW may engage in illegal activity under the Unlawful Gambling Act 1998 (NSW).”
“The Court accepted that whether the proposed arrangements will result in a breach of the Unlawful Gambling Act may well depend on the detail of those arrangements” the statement continued. “Tabcorp will review the documents disclosed in order to assess whether or not to commence legal proceedings against Entain or AHA NSW, or both, in the Supreme Court.”
With regards to the advertising pledge, Rytenskild announced during a keynote speech at the recent Regulating the Game conference that the company plans to pull its ads from primetime television, citing a desire to no longer bombard viewers with such materials.
Over the course of Rytenskild’s speech, he posited that there is currently “too much gambling advertising” on the country’s airwaves, and argued that “people should be able to watch live sport without being inundated by gambling advertising,” as reported by Asia Gaming Brief.
He also went on to say that the company plans to stop running its advertising on “free on-air television between 6:30 a.m. and 8:30 p.m.,” per AGB.
From a regulatory perspective, the CEO also opined that the differences in guidelines across the various Australian states is making it difficult to “hold all wagering operators to account.”
For example, Rytenskild specifically pointed to the number of iGaming operators getting licensed in the Northern Territory, which has led to a “proliferation” of gambling-related media.
His proposed solution was either a consolidated, national regulator or a nationwide agreement that all state regulators would adhere to.
