Waterhouse defends high-profile role
In a statement to the joint select committee on gambling reform, Mr Waterhouse said his organisation had "no intention of targeting children through our advertising" and said its controversial arrangements with broadcasters such as Nine were helping keep the industry viable and relevant.
The joint select committee on gambling reform launched an inquiry into the advertising and promotion of gambling services in Australian sport in February this year in response to growing concern over the rising television profile of betting operators such as Tom Waterhouse.
His response to the committee did not include details of the deal with Nine, or the rumoured $50 million deal with rugby league.
Mr Waterhouse said: "An arrangement between our company and the NRL has not been concluded at this stage" while his deal with Nine is "commercial-in-confidence".
He was more open about his on-TV role at the broadcaster.
"In the first two rounds we presented at some times alongside Nine commentators but not as a commentator rather as a broadcast sponsor," said the submission from Mr Waterhouse.
He said that, from round three, his role moved to "discrete segments" with clearly defined branding and company graphics. "There is no interaction between the commentators and me," he said.
According to Mr Waterhouse, his controversial dealings with Nine are more effective at achieving cut-through with viewers and said it is good for the broadcasters too. "This type of arrangement by our company, and others, in this and other industries is vital in keeping TV a viable and relevant medium to promote business," he said.
"For TV to be able to afford broadcast rights, the funding of which is ploughed back into the sport, it needs to stay relevant to advertisers. In the modern age traditional advertising [commercial ad breaks] no longer always work effectively."
In 2011, Communications Minister Stephen Conroy announced the federal government's intention to work with the sports and betting industries to "reduce and control" the promotion of live odds during sports broadcasts.
The voluntary codes being developed are designed to ensure no live odds during a game, or by commentators. It will be allowed during breaks in play and must be clearly identified as a gambling promotion. "We believe we promote responsible gambling and we have no intention of targeting children through our advertising. At all times we comply with all relevant codes," Mr Waterhouse said.
Frequently Asked Questions about this Article…
The controversy centres on Tom Waterhouse's high-profile marketing and promotion of sports betting during broadcasts of major Australian sports. A joint select committee on gambling reform launched an inquiry after concern grew about the rising television profile of betting operators such as Tom Waterhouse.
Mr Waterhouse told the committee his organisation has "no intention of targeting children through our advertising," that it promotes responsible gambling and that it complies with all relevant codes, according to his submission.
No. Mr Waterhouse said his deal with Nine is "commercial-in-confidence" and did not disclose its details. He also said an arrangement with the NRL "has not been concluded at this stage," and did not confirm rumours about the alleged value of such deals.
He said in the first two rounds he appeared alongside Nine commentators as a broadcast sponsor rather than as a commentator. From round three his role moved to "discrete segments" with clearly defined branding and company graphics, and he said there is no interaction between him and the commentators.
Mr Waterhouse argued these types of arrangements help keep TV a viable and relevant medium for advertisers, that they achieve better cut-through with viewers, and that funding from broadcasters helps pay for broadcast rights which is ploughed back into sport.
Communications Minister Stephen Conroy announced the federal government's intention to work with the sports and betting industries to "reduce and control" the promotion of live odds. Voluntary codes being developed aim to prevent live odds during play or by commentators, allow promotions during breaks, and require promotions to be clearly identified as gambling.
The voluntary codes under development are designed to ensure there are no live odds displayed during play or promoted by commentators. Live-odds promotions would be permitted during breaks in play but must be clearly identified as gambling promotions.
Investors should monitor the joint select committee inquiry, any changes to the voluntary codes or regulation of live odds during broadcasts, and disclosures about commercial deals (for example with broadcasters or sports leagues). Those developments could affect how betting companies market themselves and how broadcasters fund and present sport.
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