ACMA issues warning to Kayo for breaching gambling advertising rules

The Australian Communications and Media Authority (ACMA) has issued a warning to Kayo, a sports streaming service operated by Hubbl Pty Limited, for breaching gambling advertising regulations during live sports broadcasts. This action follows an investigation prompted by viewer complaints regarding the inappropriate timing of gambling advertisements.

Under Australian regulations, online content providers like Kayo are restricted from airing gambling ads during live sports events between 5am and 8.30pm, including five minutes before and after the event. ACMA's investigation revealed that Kayo aired 16 gambling advertisements outside these permissible hours across 267 live sporting events.

Hubbl attributed the breach to a system error affecting users of Kayo's iOS applications during a six-week period from February to March 2023. In response, ACMA issued a remedial direction to Hubbl, mandating an external audit of its technical systems and processes. This audit is intended to review the measures implemented by Hubbl to prevent similar breaches in the future.

Carolyn Lidgerwood, an ACMA authority member, expressed concern over the magnitude of the error and Hubbl's failure to promptly rectify the system bug affecting the scheduling of gambling ads. Lidgerwood stated that online streaming services and broadcasters have a responsibility to implement systems to adhere to gambling advertising rules aimed at protecting vulnerable audiences.

"The rules are there to reduce viewer exposure to gambling ads, particularly for impressionable young audiences and those vulnerable to gambling harms," Lidgerwood stated. "In this case, Hubbl has let those viewers down."

Failure by Hubbl to comply with the remedial direction could lead to penalties. According to ACMA, the Federal Court may impose penalties of up to AU$ 626,000 ($415,588) per day if Hubbl fails to rectify the issues satisfactorily.

Earlier this month, ACMA also targeted offshore gambling websites operating illegally, calling for the blocking of three additional websites. The operators, A Big Candy, Jackpoty, and John Vegas Casino, were found to be operating in violation of the Interactive Gambling Act 2001, leading the regulator to request Australian internet service providers (ISPs) to restrict access.

These websites offer online casino games without the necessary licenses required to operate legally in Australia. "ACMA is reminding consumers that even if a service looks legitimate, it’s unlikely to have important customer protections,” the authority stated. “This means Australians who use illegal gambling services risk losing their money.”