Activist investor to urge major Australian media firms to stop showing gambling ads
A campaign is targeting Nine Entertainment and Seven West.
Australia.- The Alliance for Gambling Reform and SIX, an online investment platform, have launched a campaign urging media companies Nine Entertainment and Seven West to stop accepting ads from gambling companies. The aim is to pressure the companies from the inside as SIX is an activist shareholder. It intends to present proposals at upcoming annual general meetings (AGMs).
The proposal calls for the end of gambling ads on television, radio, streaming, digital and publishing platforms.
Reverend Tim Costello, chief advocate of the Alliance for Gambling Reform, said: “We can’t get gambling reform until we’re inside these companies. I’ve bought the minimum parcel of shares in these companies. If others do the same or use their existing shares in these companies to support this campaign, we can make this campaign a success. That’s how we get inside these companies and push for change.
“The media companies are completely out of touch when it comes to gambling ads. 7 out of 10 Australians want gambling advertisements on TV to be banned. Australians lose AU$25bn each year to gambling, the highest per capita spend in the world.
“It’s clear that these big media companies are not going to tackle the scourge of gambling ads until they are forced to. We’ve waited too long for governments to act, so now we’re using shareholder power to take action.”
Adam Verwey, CEO and co-founder of SIX, said “Time and again, Australia’s biggest companies have shown that they only care about one group of people, their shareholders. So, if we want to make a change at some of Australia’s biggest companies, then we need to do it as owners of those companies.
“This will challenge institutional investors and super funds to support a resolution that has such broad community support. Given the huge community cost of gambling, it’s hard to argue that banning gambling ads isn’t in the best financial interests of super fund members.”
Shareholder resolutions at company AGMs are common in other countries but are not often used in Australia due to corporation laws requiring 100 shareholders to propose a resolution. This will be the first time shareholders have proposed resolutions at Seven and Nine.
Earlier this week, a group of over 60 prominent Australians including former prime ministers, MPs, union leaders, sports figures, business professionals, health experts and community advocates signed an open letter calling for a ban on all gambling ads within three years. The group is urging the Federal Government and the Opposition to commit to adopting all reforms recommended by the late Labor MP Peta Murphy’s Federal Inquiry into Online Gambling.
See also: Australian communications minister refutes claims of industry pressure on gambling reforms
