Kayo, a prominent streaming service provided by Hubbl, is under scrutiny by the Australian Communications and Media Authority (ACMA) for allegedly airing gambling advertisements outside the designated time slots during various live sports events. The inquiry was initiated by ACMA following numerous complaints from concerned viewers, highlighting the seriousness of the breach.
The current regulation allows online content providers to broadcast gambling advertisements only during live sport between 5 AM and 8:30 PM. Additionally, these ads are tightly restricted, with a prohibition on airing them five minutes before and after a live event. However, ACMA’s investigation uncovered a significant deviation from these rules, with a staggering 16 different gambling advertisements broadcasted outside the permissible time frames during 267 live sports events.
Hubbl, in its defense, attributed the violation to a system error, which specifically affected users accessing Kayo via its iOS application. This technical glitch spanned a six-week period from February to March 2023. Upon realizing the breach, Hubbl claimed to have taken immediate actions to rectify the fault and prevent such occurrences in the future.
As a response to this infringement, ACMA has directed Hubbl to undertake comprehensive remedial measures. This includes arranging for an external audit of its technical systems and processes, ensuring all implemented protocols are robust enough to avert similar issues going forward. The external audit is to verify the sufficiency of measures that Hubbl has claimed to have taken post-breach.
The repercussions for non-compliance with ACMA’s ruling are severe. Should Hubbl fail to act according to the authority’s directives, it could be subjected to a hefty financial penalty. The penalty, imposed by the Australian Federal Court, can reach up to AU$626,000 (£328,766/€388,572/US$417,159) per day of continued non-compliance.
ACMA authority member, Carolyn Lidgerwood, expressed acute disappointment towards Hubbl and Kayo for allowing such a large-scale breach.
. She underscored the concern about the inability of the service providers to identify and rectify a system error that resulted in widespread gambling ad broadcasts outside the designated hours.
“Online streaming services, along with traditional broadcasters, bear the responsibility to maintain robust systems that adhere to long-standing gambling advertising rules,” Lidgerwood asserted. “These rules are specifically designed to limit viewer exposure to gambling advertisements, particularly for impressionable young audiences and individuals susceptible to gambling-related harms. In this instance, Hubbl has clearly failed those viewers.”
ACMA’s primary focus remains on the actions of gambling operators and their adherence to advertising regulations. In line with this mandate, just last week, ACMA extended its crackdown on illegal gambling activities by requesting the blocking of three additional offshore gambling websites. The identified websites, namely A Big Candy, Jackpoty, and John Vegas Casino, were flagged for breaching the Interactive Gambling Act 2001, as they were found to offer unlicensed online casino games.
This move is part of ACMA’s broader campaign against illegal online gambling, with 31 blocking requests already issued this year alone. Such measures are part of the concerted efforts to safeguard Australian consumers from illegal gambling activities and ensure operators either comply with the law or cease operations within the country.
The seriousness of Hubbl’s breach serves as a sobering reminder to all online content providers about the necessity of strict compliance with advertising regulations. It also emphasizes the rigorous oversight by ACMA in enforcing these rules to protect vulnerable populations from potential gambling harms. Future compliance audits and potential penalties underline the importance of maintaining integrity and operational diligence in the digital age, especially in sensitive areas such as gambling advertising.
This case further highlights the critical need for technological systems that are infallibly designed and tested to prevent such lapses, ensuring adherence to legal frameworks set forth by regulatory authorities like ACMA. Hubbl’s forthcoming actions and adherence to the prescribed remedial measures will be closely monitored, setting a precedent for the industry on the consequences of regulatory breaches.
