Kayo Faces ACMA Penalties for Gambling Ads During Live Sports

The Australian Communications and Media Authority (ACMA) found that Kayo, a sports streaming service run by Hubbl Pty Limited, broke the rules by showing gambling ads during live sports outside permitted times. This came after viewers complained about seeing these ads at the wrong times.

Under these regulations, online content providers are prohibited from displaying gambling advertisements during live sports events between 5 am and 8:30 pm, including five minutes before and after each event. The ACMA’s investigation revealed that Kayo had broadcast 16 different gambling ads during 267 live sports events, all outside the designated time frames.

Hubbl, the operator of Kayo, attributed these violations to a technical glitch affecting iOS applications used by viewers over a period spanning six weeks in February and March 2023. Despite this explanation, ACMA Authority member Carolyn Lidgerwood expressed significant concern over the scope of the error and criticized Hubbl for failing to detect the system bug sooner, which resulted in the inappropriate airing of gambling ads during numerous broadcasts.

In response to these findings, the ACMA issued a remedial direction to Hubbl. This directive mandates an external audit of Hubbl’s technical systems and processes, specifically focusing on the measures implemented to prevent further breaches of gambling advertising rules.

Failure to comply with these remedial actions could lead to severe penalties, including potential fines of up to $626,000 per day, enforceable by the Federal Court.

Ms. Lidgerwood emphasized the importance of stringent compliance with gambling advertising regulations, stressing that such rules are designed to protect vulnerable audiences, including young viewers susceptible to gambling-related harm. She highlighted that online streaming services like Kayo have a responsibility to uphold these standards by implementing robust systems that ensure adherence to advertising guidelines.

The ACMA’s actions underscore a broader regulatory effort to safeguard viewers from excessive exposure to gambling promotions, particularly during live sports broadcasts, where the influence on viewers, especially young and vulnerable individuals, can be significant.

Hubbl now faces stringent oversight and the prospect of substantial penalties if further compliance issues arise, signaling a rigorous approach by Australian regulators to uphold advertising standards in online media.