The Government's Gambling Bill: What's Going On and Why It Matters

The Albanese government has changed its tune on its gambling reform bill. Earlier in the week, sources hinted the bill might be scrapped rather than changed. By Sunday 9 August 2026, the government was saying it is open to amending parts of the bill — specifically, the rules around "inducements," which are the bonus bets, promotional odds and other perks betting companies use to keep people gambling (The Guardian). Communications Minister Anika Wells is handling the reforms.

But the government is digging in on one thing: it will not budge on the rules about how often gambling ads can appear on TV and radio (The Guardian).

What changed the government's mind? A fortnight of Senate committee hearings on the bill produced evidence that was hard to ignore. Inquiries in early August heard testimony that some betting companies gave problem gamblers illicit drugs and sex workers to keep them betting (The Guardian).

Three days earlier, on 6 August, ABC News reported that Labor could pull the gambling ad crackdown bill entirely rather than accept major changes. The legislation was described as "friendless" in parliament (ABC News). That position has clearly shifted.

The opposition has been pushing on this exact issue. On 4 August, Senator Sarah Henderson's office said the Coalition would "drive crucial amendments to Labor's defective gambling bill," arguing the legislation ignores gambling inducements that cause "immeasurable harm" to Australians (sarahhenderson.com.au). A Senate committee briefing published on 6 August separately described the bill as "riddled with deficiencies" (aph.gov.au).

The gap on inducements did not happen by accident. A parliamentary report led by the late Peta Murphy called for an immediate ban on all online gambling inducements and inducement advertising. That was one of 31 recommendations in a report titled "You win some, you lose more," which looked at online gambling harm through a public health lens. The government's draft bill leaves out the inducement ban entirely (The Guardian).

The inquiry behind the Murphy report heard from gamblers who lost money and were then pushed to keep betting by the companies taking their bets. It also heard from people who won, only to find the betting companies would not let them wager any more. The inquiry's terms were updated in October 2022 to make sure its language included people experiencing gambling harm (aph.gov.au).

The ad rules in the bill come from the Prime Minister's National Press Club address. He proposed capping TV betting ads at three per hour between 6am and 8.30pm, and banning gambling ads on radio altogether (pm.gov.au). These are the rules the government says it will not reopen.

Here is the maths. The bill needs support from the crossbench — the independent and minor party senators — to get through the Senate. The Coalition's push for amendments gives the opposition real leverage. If Labor holds firm on ad frequency but gives ground on inducements, the question is whether that is enough to get the Coalition on side, or whether the opposition pushes for more.

The bigger picture is this. The Murphy report wanted a full, immediate ban on inducements. The government's draft offered nothing on that front. The Senate evidence about drugs and sex workers being used as betting enticements has made that gap politically very expensive. Whether Labor's shift on inducements is a real concession or just a tactical move to protect its ad rules while giving ground where the evidence looks worst will become clear when the bill comes back to parliament.