The Australian Communications and Media Authority (ACMA) has taken a decisive stance against Hubbl, the company behind the sports streaming service Kayo, following numerous complaints from viewers regarding the display of gambling advertisements outside of permitted timeframes during live sports broadcasts. This recent crackdown highlights the stringent rules in place to regulate gambling advertisements and protect vulnerable audiences, particularly young viewers.
According to ACMA regulations, online content providers are allowed to air gambling advertisements only during live sports events between 5:00 AM and 8:30 PM. Additionally, these advertisements are strictly prohibited during the five-minute window before and after any event. Despite these clear guidelines, an investigation by ACMA revealed that Kayo breached these rules extensively.
The investigation found that Kayo had displayed 16 different gambling advertisements outside the sanctioned hours over a span of 267 live sports events. This discrepancy resulted from a system error that affected viewers using Kayo’s iOS applications. Hubbl informed ACMA that this issue spanned six weeks between February and March 2023 and emphasized that the error was not intentional but rather a technical failure.
ACMA’s authority member Carolyn Lidgerwood expressed significant concern over the breach. She criticized Hubbl and Kayo for the scale of the error and their failure to promptly identify and rectify the system glitch. Lidgerwood reiterated the responsibility that online streaming services and broadcasters have in ensuring compliance with longstanding gambling advertising regulations. “These rules exist to mitigate viewer exposure to gambling advertisements, especially for impressionable young audiences and those vulnerable to gambling harms. In this case, Hubbl has let those viewers down,” she stated.
The ruling on the case has led ACMA to issue Hubbl with a remedial directive that mandates an external audit of its technical systems and processes.
. This audit aims to scrutinize the measures implemented by Hubbl post-breach to prevent future occurrences of similar issues. Failure to comply with these directives could result in substantial financial penalties for Hubbl, amounting to up to AU$626,000 per day, as per the discretion of the Australian Federal Court.
Hubbl’s response to the situation has been one of acknowledgment and compliance. The company has assured ACMA and its viewers that it is committed to resolving the technical issues and adhering strictly to the advertising regulations. Hubbl has begun implementing additional safeguards and system checks to prevent future breaches and ensure that such incidents do not recur.
The primary mission of ACMA is to enforce regulations that protect the public from the potential harms of gambling, especially through exposure via online and broadcast mediums. In addition to the recent warnings issued to Kayo, ACMA has also been proactive in targeting illegal gambling operations. Recently, the authority flagged three offshore gambling websites—A Big Candy, Jackpoty, and John Vegas Casino—for violating the Interactive Gambling Act 2001. These websites were found to be offering online casino games without the required licenses, prompting ACMA to request their blocking.
So far in 2023, ACMA has made 31 requests to block sites it has deemed to be operating online gambling services illegally. This relentless effort underscores ACMA’s broader commitment to curbing illegal gambling activities and ensuring that all gambling operations within its jurisdiction adhere to established legal frameworks.
The unfolding scenario with Kayo serves as a crucial reminder to all content providers about the importance of compliance with advertising regulations. As gambling adverts increasingly find their way into various forms of media, the onus is on service providers to ensure that these advertisements are shown responsibly and within legal timeframes to protect vulnerable populations from potential harm.
