Q&A: Betfred's Luke Brill on Australia's crackdown on gambling marketing

What’s the impact of this week’s report into gambling promotion on operators?

I think it’s unrealistic to think that a high percentage of potential customers see or hear the odds on live broadcasts and immediately sign up on the spot to take that particular price. I think it is also unrealistic to think that existing customers pick up the phone and try to place a live bet that minute as you can only bet live over the phone in Australia. However from a brand reinforcement perspective having your odds discussed by the on air talent during the game can only increase brand awareness as the viewers and listeners are totally engaged in the event. Other avenues like sponsorship and TV advertising in the break will become more important when the integration of live odds is removed.

Will any such ban stifle any specific operators who rely on this mainstream marketing such as during live games?

There are no operators that solely rely on the promotion of live odds during games. Those that have the media deals in place use these promotions as part of their marketing mix. I imagine the operators that are affected by this ban will reallocate there marketing spend to other areas of the media, however expertise will be essential in formulating these strategies as anyone can write a big cheque but these methods require more strategic thinking.

Is there a sense that operators have had it too good for too long in terms of being able to promote prices in any means they want?

Since deregulation of marketing in 2008, the gambling sector in Australia has become the most hotly contested segment within the media landscape, covering all forms of media and sponsorship. Incumbent land-based pari-mutuel retail wagering operators Tabcorp and Tatts Group have a stranglehold on a high percentage of industry assets, excluding competitors from advertising. Therefore the assets that are available are aggressively contested by the corporate bookmakers so the media companies charged huge sums for them.

By charging millions for a broadcast sponsorship of live sporting events the operator would be offered not only exclusive sector advertising rights around the event but full content integration including promotion of live odds before, during and post each event. This repetitive content integration became overwhelming for the viewers and listeners and the public and the press have lobbied both State and Federal government to step in.

To put the Australian sports gambling advertising market into a UK context, it would be like Gary Lineker discussing the odds with Alan Hansen and Alan Shearer ahead of each game preview on Match of the Day and then during the game John Motson discussing the next goal scorer market mid commentary. In my opinion it needed to change.

Does the review by the parliamentary committee signal the start of a wider crackdown on advertising across the industry?

All of the major operators are working closely with both state and federal government to shape these changes and I see regulation around advertising as just part of the Australian gaming industry maturing.

Could any crackdown on mainstream advertising be beneficial for smaller operators such as Betfred?

Without doubt, for a while it was who could write the biggest cheque acquired the most customers. Operators were lured into vastly overpaying for media assets as a blocking move rather than sound marketing. I have never been a fan of cheque book marketing and now we will see operators competing on product, price, technology, customer service and clever cost effective marketing. I can’t wait to get back in the game.