PointsBet CEO claims Australian operations would be unaffected by gambling ad restrictions
Sam Swanell argues any curbs on gambling advertising in Australia would “logically improve” the company’s margins in the short term
PointsBet CEO Sam Swanell has said that the operator is in a strong enough position to withstand any potential bans on gambling advertising imposed within Australia.
The Albanese government is considering proposals to implement a cap system on gambling ads in the country, limiting ads to two per hour until 10pm.
The government faced scrutiny for going back on proposals from the late Labour MP Peta Murphy to scrap gambling advertising in Australia altogether.
The issue has proved to be divisive among politicians and industry figures.
Former Australian prime ministers Malcolm Turnbull and John Howard signed an open letter on 10 August calling for a blanket ban to be implemented within the next three years.
The Australian Medical Association also threw its support behind a blanket ban rather than the proposed cap system.
Conversely, Labour MP Bill Shorten claimed the abolition of gambling ads would be detrimental to free-to-air TV within the country.
Think tank The Australia Institute has even proposed introducing a 2% levy on gambling companies’ revenue to offset the loss of earnings for media outlets from fewer gambling ads, estimated to be around A$240m (£123.3m) a year.
Regardless of whether a partial or full ban gets introduced, Swanell said PointsBet’s operations would continue as usual.
Speaking on an analyst call following the release of the operator’s FY24 results, the CEO said: “Where we sit today, any outcome of the government recommendations is not going to impact full-year 2025. So, it’s really about 2026 onwards.
“Our assumption is we continue to spend as we are now. Those margins are not factoring in implications from any recommendations.”
Swanell noted that advertising restrictions might in fact have a positive impact on the company’s profit margins.
He continued: “In broad terms, if our ability to execute marketing was restricted in some way by the recommendations then our margins would logically improve – you’d spend less on marketing.
“We believe that our brand is big enough. Our technology is obviously very strong. If we can’t spend what we plan to spend for whatever reason, we’re in good shape because our product is elite and we’ve got an established brand.”
Earlier this summer, PointsBet opted against renewing its stadium sponsorship rights deal with the Australian National Rugby League team (NRL), the Cronulla Sharks. At the time, PointsBet Australia CEO Andrew Catterall suggested that such sponsorships were no longer appropriate.
Swanell added: “We think those sponsorships have been valuable. I think they’re more brand building than direct channels.
“We were already moving our marketing spend to be more targeted. We want to advertise to adults. We don’t want to be spending marketing dollars inefficiently on mass market channels.”