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Proposed ad ban in Australia – could benefit newcomers

July 2, 2023


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Proposed ad ban in Australia - could benefit newcomers

According to analysts at Jefferies, the proposed ad ban in Australia is likely to have a net positive effect on incumbent brands in the industry. The proposals in the Australian parliament would impose a blanket ban on advertising, promotions, and sports sponsorships.

While there may be an initial negative reaction to the news, Jefferies expects that any ban would ultimately benefit established brands. This includes market leader Sportsbet, owned by Flutter, as well as Tabcorp, which has reportedly been supporting the move.

Jefferies predicts that the market dynamics would result in slower market growth overall but greater market share for the incumbents. Challenger brands would face challenges in gaining visibility without the assistance of above-the-line advertising.

The analysts also noted that operators with a land-based presence, such as Tabcorp, would have the advantage of driving direct player recruitment.

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