More than three million Australians who identify themselves as problem or at-risk gamblers might find themselves vulnerable due to a surge in text messages from betting companies.
While stringent regulations govern gambling advertisements on television, radio, and online platforms, the rules surrounding text messages are notably more relaxed.
This begs the question: How frequently can gambling companies send SMS messages, and what regulations apply to this practice?
By law, gambling companies must ensure that their direct marketing materials, such as text messages, encompass two key elements: consistent messaging about the risks and potential harms associated with gambling, and a straightforward method for recipients to opt out.
Consequently, every text message must include specific warnings like “chances are you’re about to lose” and clear instructions or a link to unsubscribe.
However, since text messages are considered private communications, they manage to bypass many of the public restrictions placed on gambling advertisements.
Why are text messages treated differently to other media, such as TV ads?
But because texts count as private messages, they can skirt around most public gambling advertising restrictions.
“One of the big issues here is the rise of smartphones,” associate professor at CQUniversity’s Experimental Gambling Research Laboratory Alex Russell told 9news.com.au.
“Everyone’s got a smartphone in their pocket all the time, and you can bet on that all the time.”
And betting companies can reach customers all the time via texts.
The texts often included incentives to bet, such as bonus bets and reward points.
In most cases, bettors who received a text responded by placing a bet with the operator that sent it.
They were also influenced to place more bets, place unplanned bets, make impulsive betting decisions and bet more than planned.
“We do see that people are targeted more if they are more likely to lose,” Russell added.
“So if you’re getting offers, it’s probably because it’s good value for them [gambling companies] to send it to you, because you’re going to bet and lose.”
How much money are Aussies gamblers losing?
Australians are the biggest gambling losers in the world per capita, losing about $32 billion annually; more than governments spend on aged care in Australia.
The number of problem gamblers has also risen by 22 per cent since last year.
And the losses don’t just affect the individual who is gambling.
“A hell of a lot more people are harmed by gambling,” Russell said.
But he questions how Aussies are supposed to break free from gambling addiction when betting companies are able to reach them with targeted texts any hour of the day.
Calls grow for greater regulation around SMS messages
Gambling reform advocates have called for more transparency and regulation around direct digital marketing materials like texts encouraging bets.
Last year, more than 70 prominent Australians, including former prime ministers, signed an open letter calling on the federal government to ban gambling advertising in accordance with the Murphy Report parliamentary inquiry’s recommendations.
Independent Senator David Pocock was one of the signatories.
“The evidence shows that partial advertising bans do not work,” he told 9news.com.au.
“The Murphy Report was clear, the Government should immediately ban direct inducements, such as the bonus bets people are offered via personalised texts.”
He called it “predatory marketing” that targets Aussies on a losing streak and highlighted the government’s inaction in the two years since the Murphy Report was released.
“There is wide support in the Parliament to ban gambling ads and to ban inducements, but it won’t happen while the Prime Minister continues to bow to pressure from the gambling companies and the powerful vested interests who are making too much money off of the suffering of Australians,” Pocock said.
The Albanese government has not committed to a ban on gambling advertising.
Russell fears it will only do more harm to already struggling Australians.
“How are you meant to not experience a problem when gambling is so saturated and everywhere?” Russell said.
“How are you meant to get away from this?”
How to stop or unsubscribe from betting company texts in Australia
Gambling companies are legally required to include a way for consumers to unsubscribe from text marketing in any texts they send.
In some cases, consumers must text ‘STOP’ or a similar phrase to a specific number.
In others, they can click an unsubscribe link in the text and follow the prompts to opt out of text message marketing.
After joining the National Self-Exclusion Register, online and phone gambling providers will not be able to send you marketing messages.
How to report spam texts from gambling companies
Specific spam texts can also be forwarded to the ACMA on 0429 999 888.
All services are free, confidential and available 24 hours a day, 7 days a week.
