The Senate Passed Gambling Reform — But the VIP Perks Survived
The Senate passed the Albanese government's gambling reform bill on the Wednesday night before 19 August 2026, after Labor and the Coalition struck a deal on advertising restrictions earlier that week [The Guardian, https://www.theguardian.com/australia-news/2026/aug/18/gambling-reforms-betting-ads-labor-coalition-strike-deal]. The final legislation does not include a ban on VIP account managers rewarding gamblers with free gifts that disappear when their bets do [The Guardian, https://www.theguardian.com/australia-news/ng-interactive/2026/aug/20/gambling-reforms-sports-betting-addiction-vip-managers-jesse-murphy-ntwnfb].
Communications minister Anika Wells said the bill will stop 'the most toxic' form of inducements [The Guardian, https://www.theguardian.com/australia-news/ng-interactive/2026/aug/20/gambling-reforms-sports-betting-addiction-vip-managers-jesse-murphy-ntwnfb]. Critics have described the changes as 'window dressing', 'minor tweaks' and 'piecemeal amendments' [The Guardian, https://www.theguardian.com/australia-news/ng-interactive/2026/aug/20/gambling-reforms-sports-betting-addiction-vip-managers-jesse-murphy-ntwnfb]. The Greens called the Labor-Coalition agreement 'cowardly' and independent senator David Pocock condemned the deal [The Guardian, https://www.theguardian.com/australia-news/2026/aug/18/gambling-reforms-betting-ads-labor-coalition-strike-deal].
What the bill actually does
The bill's advertising restrictions form its core. The government announced a range of gambling reforms on 2 April 2026 [DSS, https://www.dss.gov.au/gambling/gambling-reforms], including a ban on gambling advertising during live sports and in sports venues, and boosted enforcement action [Infrastructure.gov.au, https://www.infrastructure.gov.au/media-communications/media-gambling-laws-regulation/gambling/gambling-reforms-2026]. A media release of 5 August 2026 confirmed an extension of the existing pre- and post-match advertising ban around live sport from 30 minutes to one hour [APH, https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/bd/bd2627/27bd008]. Gambling advertisements will not be permitted after 8.30 pm during play, including during injury delays or after a goal [Responsible Gambling Victoria, https://responsiblegambling.vic.gov.au/about-us/news-and-media/australian-government-announces-gambling-advertising-ban-during-live-sport/].
The legislation extends to digital gambling platforms, requiring a 'triple lock' system — meaning age verification, logged-in status, and an opt-out mechanism — before displaying promotions [iGaming Business, https://igamingbusiness.com/legal-compliance/australian-senate-committee-online-gambling-reform-package-legislation-agreed-coalition/]. Online gambling advertisements would generally be restricted to adults who are logged in and age-verified, with the government moving to make opting out of online gambling ads as easy as paying a bill [ABC, https://www.abc.net.au/news/2026-08-18/federal-politics-how-will-gambling-ad-opt-out-work-online/107049074]. The new rules include a cap of three advertisements per hour between 6 am and 8.30 pm [Reuters, https://www.reuters.com/world/asia-pacific/australia-pm-albanese-announces-crackdown-gambling-advertising-2026-04-02/]. The bill amends the Interactive Gambling Act 2001 to prohibit the advertising of licensed interactive wagering services, subject to limited exceptions [APH, https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r7459].
One government change requires gambling companies to identify 'high risk' customers and bans them from being pushed inducements, with industry to be consulted on what 'high risk' means [The Guardian, https://www.theguardian.com/australia-news/ng-interactive/2026/aug/20/gambling-reforms-sports-betting-addiction-vip-managers-jesse-murphy-ntwnfb]. The consultation on that definition is where the regulatory rubber meets the road, or doesn't.
What the inquiry said — and what the government did instead
In June 2023, a bipartisan parliamentary inquiry led by the late Labor MP Peta Murphy recommended a total ban on gambling inducements 'without delay' [The Guardian, https://www.theguardian.com/australia-news/ng-interactive/2026/aug/20/gambling-reforms-sports-betting-addiction-vip-managers-jesse-murphy-ntwnfb]. The Albanese government ignored that recommendation and instead placed limited restrictions on the marketing of inducements [The Guardian, https://www.theguardian.com/australia-news/ng-interactive/2026/aug/20/gambling-reforms-sports-betting-addiction-vip-managers-jesse-murphy-ntwnfb].
The human cost of the gap between the inquiry's recommendation and the bill's final form is visible in the experience of Jesse Murphy, a former gambling addict who is not related to Peta Murphy. Between 2019 and 2024, Murphy received free tickets to AFL and horse racing and free food and alcohol from VIP gambling managers [The Guardian, https://www.theguardian.com/australia-news/ng-interactive/2026/aug/20/gambling-reforms-sports-betting-addiction-vip-managers-jesse-murphy-ntwnfb]. He placed more than 15,000 bets worth nearly $1 million. One gambling company sent him $43,700 in bonus bets in just over two years. Text messages over a five-year period show VIP managers would routinely place bonus bets into his account without asking. Murphy has not placed a bet in almost two years [The Guardian, https://www.theguardian.com/australia-news/ng-interactive/2026/aug/20/gambling-reforms-sports-betting-addiction-vip-managers-jesse-murphy-ntwnfb].
Murphy shared his experience with the parliamentary inquiry [The Guardian, https://www.theguardian.com/australia-news/ng-interactive/2026/aug/20/gambling-reforms-sports-betting-addiction-vip-managers-jesse-murphy-ntwnfb]. He says Labor's reforms will not stop others being drawn into betting via VIP-manager perks. If the new laws had been in place at the start of his gambling journey, he has no confidence they would have made his experience any different or easier [The Guardian, https://www.theguardian.com/australia-news/ng-interactive/2026/aug/20/gambling-reforms-sports-betting-addiction-vip-managers-jesse-murphy-ntwnfb].
The broader context is grim. Problem gamblers had been supplied with cocaine, alcohol, sex workers and luxury hotels by VIP account managers hoping to keep big-spending gamblers engaged [The Guardian, https://www.theguardian.com/australia-news/2026/aug/08/amid-a-week-of-sex-and-drug-allegations-pocock-summed-up-albaneses-gambling-plan-with-one-word]. Australians are the biggest gambling losers in the world [The Guardian, https://www.theguardian.com/australia-news/commentisfree/2026/aug/09/gambling-industry-senate-inquiry-australia-comment].
Here is the honest accounting. The final bill does not touch the VIP-manager perk system that kept Jesse Murphy gambling. The government consulted industry on what 'high risk' means. It did not ban the inducements that its own bipartisan inquiry told it to ban 'without delay' more than three years ago. The legislation restricts advertising. It leaves the relationship between a VIP manager and a problem gambler intact.
