Streaming platform Kayo, operated by Hubbl, is facing serious scrutiny following allegations of broadcasting gambling advertisements outside the designated times during various live sports events. The Australian Communications and Media Authority (ACMA) initiated an investigation after receiving complaints from several viewers.
In Australia, online content providers like Kayo are legally allowed to display gambling advertisements only during live sports events, and even then, only between 5 a.m. and 8:30 p.m. These ads are farther restricted and cannot be shown within five minutes before or after an event. Despite these clear guidelines, ACMA’s investigation revealed that 16 different gambling advertisements were aired outside the permitted times, affecting a staggering total of 267 live sports events.
Hubbl attributed the compliance breaches to a system glitch that notably impacted users of the Kayo iOS application. This issue persisted over a six-week window, spanning from February to March 2023. The acknowledgment of this glitch did not spare Hubbl from ACMA’s firm response. ACMA’s ruling included issuing Hubbl a remedial direction, compelling them to organize an external audit of their technical systems and processes. This audit is designed to evaluate and ensure the effectiveness of new measures implemented to prevent further violations.
Failure to comply with these directives could lead to severe financial repercussions for Hubbl. Penalties may reach up to AU$626,000 (£328,766/€388,572/US$417,159) per day, this is to be decided at the discretion of the Australian Federal Court.
ACMA member Carolyn Lidgerwood expressed significant concern over the breaches. She criticized Hubbl and Kayo for the magnitude of the error and their inability to quickly identify and rectify the system bug that resulted in the improper display of gambling ads during numerous live sports events.
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“Online streaming services and broadcasters alike bear a responsibility to maintain robust systems to ensure compliance with long-standing gambling advertising regulations,” stated Lidgerwood. “These rules are designed to shield viewers from excessive exposure to gambling ads, especially vulnerable groups like young audiences who are highly impressionable and individuals susceptible to gambling-related harms. In this case, Hubbl has arguably failed to protect these viewers.”
Emphasizing their ongoing commitment to monitoring and regulating gambling platforms, ACMA recently called for the blocking of three additional offshore gambling websites. These sites—A Big Candy, Jackpoty, and John Vegas Casino—were found to be operating in violation of the Interactive Gambling Act 2001 by offering online casino games without the necessary licenses.
This recent incident with Kayo underscores a broader issue within the digital content and gambling industry. Since the start of the year, ACMA has lodged 31 blocking requests against sites it deems to be conducting illegal online gambling activities.
As the situation continues to unfold, stakeholders within the online content and gambling sectors are on high alert. The Kayo incident serves as a stark reminder of the regulatory landscape companies must navigate to avoid legal pitfalls and financial penalties. For viewers, especially those vulnerable to gambling addiction and younger audiences, ensuring that these regulations are strictly adhered to is paramount in curbing the potential negative impacts of gambling advertisements.
The broader implications of ACMA’s enforcement actions extend beyond individual companies like Hubbl and Kayo. They serve as a warning to all online content providers and broadcasters about the essential importance of compliance. The onus is on these entities to proactively audit and update their systems to prevent unwarranted advertisement breaches.
Moreover, ACMA’s dedication to maintain regulatory vigilance reflects its commitment to curbing unlawful gambling operations while ensuring a safer viewing environment. With an increase in digital media consumption, particularly in the domain of live sports streaming, regulatory authorities face an evolving array of challenges. This incident is a timely reminder of the dynamic nature of digital regulations and the constant need for technological vigilance and accountability.
