Gambling red flag system under fire as 'Dracula in charge'

Gambling reforms put onus on bookies to flag vulnerable punters In short: Wagering companies will have to identify customers showing signs of problem gambling and stop sending them betting inducements. Critics say allowing the industry to flag its own vulnerable users is too weak, but the federal government says it will curb predatory tactics. What's next? Labor's gambling reforms are expected to pass the Senate with the support of the Coalition this week, with detailed criteria of the new red flag inducement system to be developed in the coming months. Australian wagering companies will identify their own problem gamblers and cut off betting inducements under a system one critic has likened to putting "Dracula in charge of a blood bank". The plan to let the industry red flag its own vulnerable customers has been labelled weak by advocates who wanted tougher restrictions on the "predatory" tactics, while supporters have described the measure as "significant" reform. The federal government's gambling ad crackdown passed the lower house on Tuesday and is expected to pass the Senate before the parliament sitting week ends after Labor struck a deal with the Coalition. Following harrowing evidence about gambling addicts being offered bonus bets and other incentives to gamble being heard at a parliamentary inquiry, the government agreed to curtail so-called inducements. This included an amendment to create a red flag system where companies are required to tag customers showing signs of problem gambling and stop sending promotions to those individuals. Liberal MP Andrew Wallace, who was one of two Coalition members to cross the floor and vote against the bill over concerns it was not strong enough, said he did not trust gambling companies to flag potentially lucrative customers. "I don't think it's acceptable that the bill basically gives [companies] the power to determine whether someone is a problem gambler or not," he said. "To me, that's like putting Dracula in charge of a blood bank." In the coming months, existing evidence and research about gambling, such as spend amount, frequency or other betting patterns, will be used to create metrics to guide companies on who they must flag. Further details like transparency requirements and whether the red flag would be time-limited would also be finalised. The government would impose the red flag scheme through regulation, with the Australian Media Communications Authority (ACMA) responsible for its enforcement and handling complaints. Currently, gambling companies are required to identify and respond appropriately to problem behaviour through state and territory regulation, but the national laws would specifically link this work to inducements. Further restrictions on inducements and TV ads Further agreed amendments stop companies from marketing inducements to new customers for 14 days from account sign-up, and for three months to people who have come off the self-exclusion register Betstop. The bill also now bans wagering staff from earning commissions based on customers' gambling activity. Tackling inducements became a major focus of amendment talks after a Senate inquiry this month heard allegations from NRL player Luke Bateman that gambling company employees unofficially offered to arrange illicit drugs while cultivating relationships with him as a high-volume punter. The issue was also included in Labor's 2026 national platform endorsed at the party's conference in July. This week, Labor also agreed to amendments put forward by the Coalition to establish a new opt-out register for gambling advertising, to be called Adstop. Further changes were also made to extend the ad blackout on television to at least 15 minutes before a live sport game, mirror the broadcast restrictions for streaming platforms and ban ads during children's programming. The ABC revealed on Monday the gambling agreement had been reached before it was finalised on Tuesday morning with the endorsement of the full Labor caucus and all but a handful of Coalition party room members. 'Incredibly disappointing', says MP who crossed floor Along with Mr Wallace, Nationals MP Pat Conaghan argued the laws did not go far enough and broke ranks to vote against the gambling bills in the House of Representatives. Coalition backbenchers are permitted to cross the floor when in opposition if they inform colleagues of their intent, with at least one senator also reserving their right to do the same. Mr Conaghan, who was on the committee for the online gambling harm inquiry chaired by late Labor MP Peta Murphy three years ago, said it was "incredibly disappointing" many of the recommendations from that report had been "discarded". "It would have been great to see a national regulator … and to get rid of those inducements online where we heard that evidence from family members of loved ones who had taken their own lives because of the shame and debt," he told Afternoon Briefing. "I do not live in a bubble; I know it wouldn't have been all 31 recommendations, but the major ones should have been put through. "Peta Murphy would be incredibly disappointed, and exactly why I crossed the floor for the first time in my career." Greens say reforms are 'riddled' with holes Prime Minister Anthony Albanese heralded the legislation as the "most significant gambling advertising reform by any Australian government ever". "It increases protections for people most at risk of gambling harm, while continuing to allow those who enjoy a bet to do so," he said. Communications Minister Anika Wells said Labor had listened to a "range of views" across the community and parliament and decided to tackle the "most toxic version" of gambling inducements. "This package of reforms minimises children's exposure to wagering advertising, takes action on predatory inducements and cracks down on illegal gambling operators," she said. Shadow Communications Minister Sarah Henderson said the Coalition had negotiated tougher protections where they were needed, while ensuring the laws were "practical, proportionate and respect personal responsibility". "The Coalition has secured stronger rules around live sport online, children's programs, predatory inducements and the illegal gambling ads flooding social media," she said. But Greens communications spokeswoman Sarah Hanson-Young said the gambling legislation was "riddled with holes" and criticised Opposition Leader Angus Taylor for making a deal with Mr Albanese. "The whole bill is a dog, and it's now become a dog's breakfast," she said. "Angus Taylor has been weak. He's rolled over, and he's yapping like Toto the dog. "Let's be clear: this is not reform. This is a protection racket for an industry that has lost its social license." Gambling industry says 'devil will be in the detail' Responsible Wagering Australia (RWA), a peak industry body for licensed gambling companies, was critical of the amendments made to the bill this week and argued the changes disregard the risk of pushing gamblers to unregulated offshore markets. RWA chief executive Kai Cantwell said there must be scrutiny of measures that added cost and complexity without a "clear link" to reducing harm. "The devil will be in the detail, expected to largely be left to regulation." Mr Cantwell said the complexities of the opt-out advertising register risked undermining the self-exclusion service Betstop and created "serious" implementation concerns. He said Betstop had taken more than four years to fully implement and questioned how a similar version for all online advertising could be achieved in only four months. The gambling bill is due to take effect from January 1 next year, but the government is anticipating the Adstop register would take longer to establish Mr Cantwell said overall the new measures would "significantly curtail" Australian companies' ability to "advertise a legal product safely to adults". "If you push people away from the licensed, regulated market — by banning or limiting the promotions that let local operators compete, or by making Australian odds less competitive with new taxes and levies — you don't stop them punting," he said. "You push them offshore, into products with no consumer protections, no support, no Betstop, and no contribution to Australian sport and racing." Loading...