The Greens in Australia argue that concerns over the future of free-to-air TV following the contentious full ban on gambling advertisements are unfounded.

Speaking to the Guardian Australia on Wednesday, Sarah Hanson-Young, the Greens' communications spokesperson, stated that free-to-air television does not need gambling revenue to prosper.

Hanson-Young dismissed the idea as propaganda spread by ill-intentioned politicians. She further criticised the gambling industry, stating that it profits from the "misery and addiction of gambling," which is not a sustainable business model.

Offsetting Financial Impact with a New Tax

Instead, Hanson-Young suggests that there are alternative ways to support free-to-air TV, such as a newly proposed “tech tax” on global companies like Meta, TikTok, and Alphabet. The argument, she explained, is that these companies should contribute financially for the journalism they utilise to generate revenue.

While the proposal may seem attractive, it carries significant risks. Both Australia and Canada have pressured Meta to pay media outlets for content displayed on its social media platform, Facebook. However, following Canada’s more aggressive stance, Meta chose to stop displaying news on its platform, thereby avoiding the tax altogether.

Australia’s attempt to coerce global tech giants into complying with such a tax could have unpredictable consequences. One possible outcome is that tech companies may withdraw services subject to the tax, which would leave free-to-air TV in a difficult position, especially if this tax were the only measure intended to support the sector.

Despite these risks, the concept of a new tax appears to resonate with some politicians. The government of Anthony Albanese has similarly indicated that it may seek to prevent companies from “riding free” on the back of traditional media.

As the debate over the tax continues, the future of gambling ad regulation remains uncertain. In the meantime, there is growing support from well-known personalities and politicians in Australia for a comprehensive ban on gambling advertisements.

Free-to-air TV Calls for Tax Relief

Free-to-air TV is not remaining passive either. Representatives of free-to-air TV and radio are now urging the government to abolish the $50 million commercial broadcasting tax on transmitter licences, which would provide more flexibility and help mitigate the potential loss of gambling partnerships.

According to Free TV Australia CEO Bridget Fair, a ban on gambling advertising would have a significant impact on the industry, making it essential to explore alternatives, such as reducing the current tax burdens faced by the sector.

Tim Costello of the Alliance for Gambling Reform has criticised media companies, accusing them of being out of touch with the realities of gambling ads and the harm they cause. He highlighted that Australians lose $25 billion annually to gambling.

The outcome of these debates remains unclear, but relying on a yet-to-be-passed tax, which may struggle to gain legislative support or ultimately fail to achieve its intended purpose, may not be the ideal solution for supporting free-to-air TV.