The way we watch sports on television faces a major transformation as virtual advertising continues to grow in popularity. The new technology enables broadcasters to embed betting ads directly into live sports broadcasts, which creates new business prospects for betting companies throughout Australia and New Zealand. Brands may gain substantial revenue through this approach, but it creates multiple challenges as well, including technical issues, regulatory barriers, and community backlash.

Betting Ads Everywhere

Research findings show betting-related content dominates 20% of live game broadcasts, which translates to three betting promotions appearing every minute. The data indicates that free-to-air TV broadcasting of daily betting ads in Victoria increased from 374 in 2016 to reach 948 in 2021. And this only accounts for traditional television, while digital platforms display additional betting ads. The extensive presence of betting logos and messages throughout broadcasts has made them essential components of all sports broadcasts, whether cricket, rugby, AFL, or something else.

Numerous betting references appear digitally on the playing surface and boundary lines, making them nearly impossible to ignore. Live sports broadcasts now incorporate betting advertisements as a standard component, which benefits advertisers yet raises concerns about its impact on audiences.

Balancing Innovation and Responsibility

The development of virtual advertising requires strong regulatory measures to maintain its proper implementation. In Australia, the Australian Communications and Media Authority (ACMA) ensures that betting ads follow strict guidelines. For instance:

• live odds are prohibited during games;
• betting ads must cease after 8:30 PM during sports broadcasts;
• there are strict restrictions on ad placements near schools.

The violation of these rules leads to substantial financial penalties and may result in enforcement steps that start with formal warnings and progress to civil penalty orders.

New Zealand has adopted equally strict regulations for gambling activities. Offshore betting operators must pay 12% of their revenue in duties to the government in addition to GST since July 2024. The promotion of overseas gambling leads to possible fines reaching $10,000 (~15,736 AUD) for individuals and $50,000 (~78,683 AUD) for companies. These measures demonstrate how governments must maintain an equilibrium between technological progress and safeguarding public welfare, particularly during times when vulnerable audiences could be affected by gambling content.

A Paramount+ Incident: What Went Wrong

A recent incident involving streaming giant Paramount+ illustrates both the promise and the pitfalls of virtual advertising. A broadcast of 8Xbet gambling ads occurred during Wellington Phoenix’s match against Brisbane Roar at the A-League in New Zealand. 8Xbet gained notoriety for its bikini-clad croupiers and attention-grabbing promotional materials. The digital ads displayed on the sidelines were intended for international viewers because existing commercial agreements limited broadcasts to international feeds for both Australian and New Zealand audiences.

The Australian Professional Leagues discovered the breach during the first half of the game. The technicians worked to eliminate the ads, but they reappeared during the second half because of another technical failure. The spokesperson for Paramount+ stated that the incorrect international feed from a third-party supplier caused this broadcast error. The company operates with its external advertising agency to stop this mistake from happening again. 

National regulators have taken notice of the incident, while critics, including Carol Bennett from the Alliance for Gambling Reform, have accused the A-Leagues of “selling out” to offshore gambling interests.

Community Concerns and Industry Responsibilities

The increasing visibility of betting ads leads to mounting worries within communities. The continuous exposure to gambling promotions potentially makes betting seem normal even to young audiences. Broadcasters now use more suitable approaches to protect their audiences, including the elimination of betting advertisements from children’s viewing times and adding responsible gambling messages in their broadcasts.

Local sports clubs, too, are caught in a challenging dilemma. Essential financial resources that betting companies offer to small clubs help them with funding, but these partnerships herm the clubs’ reputation while conflicting with the values of their home communities. The Australian club Melbourne Victory demonstrated its stance against gambling sponsorships by rejecting such partnerships while supporting programs that fight gambling-related damage.

The Future of Virtual Advertising

Sports broadcasting now enters a new era because of its integration with virtual advertising. The path to enduring success for betting companies and broadcasters depends on their ability to handle this increasingly tricky environment. 

Game-based augmented reality marketing will likely emerge as the leading tech advancement among live sports advertising platforms shortly. However, with technological advances will come the need for stricter regulatory frameworks to ensure that such innovations do not compromise viewer safety or social responsibility.