Kayo, a leading sports streaming service provided by Hubbl, has come under fire from the Australian Communications and Media Authority (ACMA) for allegedly broadcasting gambling advertisements outside the allocated time slots during various live sports events. This breach has prompted ACMA to launch a comprehensive investigation following multiple complaints from concerned viewers.
According to ACMA regulations, online content providers are permitted to air gambling advertisements only during live sports broadcasts between 5 am and 8.30 pm. Additionally, such advertising is strictly prohibited during the five-minute windows immediately before and after the events. However, ACMA’s findings revealed that Kayo broadcasted 16 different gambling advertisements outside these specified times, affecting a total of 267 live sports events.
Hubbl, in its defense, attributed the breaches to a system error affecting the Kayo iOS applications. This technical glitch supposedly spanned a six-week period between February and March 2023. Despite the explanation, ACMA has issued a remedial direction to Hubbl, requiring the company to conduct an external audit of its technical systems and processes. This audit is expected to thoroughly review the measures implemented since the breaches to ensure such lapses do not recur.
Should Hubbl fail to comply with ACMA’s remedial direction, it could face severe financial penalties. The Australian Federal Court has the discretion to impose fines reaching up to AU$626,000 (£328,766/€388,572/US$417,159) per day for non-compliance.
ACMA authority member Carolyn Lidgerwood expressed strong disapproval towards Hubbl and Kayo for the breaches. She highlighted the gravity of the situation, emphasizing both the scale of the error and the oversight in identifying a system bug responsible for the widespread dissemination of gambling ads during a considerable number of live sports events.
“Online streaming services, as well as broadcasters, bear the responsibility of implementing robust systems to adhere to these long-standing gambling advertising rules,” Lidgerwood stated. “These regulations aim to minimize viewer exposure to gambling ads, particularly among impressionable young audiences and individuals vulnerable to gambling-related harms.
. In this situation, Hubbl has failed these viewers.”
ACMA’s primary focus has traditionally been on gambling operators and their compliance with regulatory frameworks. Recently, the authority took action against three additional offshore gambling websites, issuing block requests after determining they were operating illegally. The websites in question—A Big Candy, Jackpoty, and John Vegas Casino—were flagged for breaching the Interactive Gambling Act 2001, as they offered certain online casino games without the requisite licenses.
Since the beginning of the year, ACMA has made a total of 31 blocking requests against various sites deemed to be running illegal online gambling operations. This proactive stance underscores ACMA’s commitment to regulating and monitoring the gambling industry, thereby protecting Australian consumers from unlawful gambling activities.
The situation with Kayo exposes the complexities and challenges faced by online content providers in adhering to regulatory guidelines. It also highlights the crucial need for these providers to have effective technological systems and processes in place to ensure compliance with such regulations continuously.
For viewers and stakeholders, this case serves as a reminder of the importance of regulatory bodies like ACMA in maintaining the integrity of broadcast and online content. By enforcing rules and holding companies accountable, ACMA aims to safeguard viewers, especially the younger and more vulnerable sections of the population, from the potential harms associated with excessive exposure to gambling advertising.
The ongoing scrutiny and resultant penalties could serve as a deterrent for other content providers, emphasizing the need for vigilance and strict adherence to advertising regulations. This case not only stresses the need for internal checks and system audits but also underscores the broader impact of such breaches on public trust and the overall viewing experience.
In the wake of these findings, stakeholders in the broadcasting and online content industries are likely to re-evaluate their advertising protocols and technological infrastructures. This move will be essential to prevent similar breaches in the future and to uphold the standards set forth by regulatory authorities like ACMA. Through such measures, the overall goal remains to create a safer and more responsible viewing environment for all.
