UPDATE: Just announced, Australia’s major betting companies are withdrawing smaller soccer leagues from their platforms amid a contentious standoff with Football Australia (FA) over proposed increases in gambling fees. This escalating conflict could potentially make soccer the most expensive sport for bookmakers in the country, surpassing even AFL and NRL.
The current agreement between FA and leading betting firms such as Tabcorp, Sportsbet, and Entain (owner of Ladbrokes and Neds) is set to expire at the end of October 2023. Presently, these companies contribute either 1% of their total bets or 15% of their profits quarterly, a deal that has netted FA approximately AUD 9 million (around $5.9 million) over the past three years, according to the Australian Financial Review.
FA is pushing for a new model that mandates betting firms to pay based on individual matches—either 1% of turnover or up to 15% of gross profit, whichever is higher. Industry insiders warn that these changes could drive total fees to nearly 30% of revenue for certain games, far exceeding the fees imposed by other major Australian sports.
As a result of these proposed changes, many operators have already begun to limit betting options for leagues like the Victorian State League and NSW League Two. Some bookmakers have indicated that if FA proceeds with its plans, markets for the A-League could also be affected.
Bookmakers argue that a match-by-match fee structure would lead to financial instability and complicate cash flow management. In contrast, FA asserts that the revenue generated from these fees is crucial for supporting grassroots and youth programs throughout Australia. This debate is particularly significant as soccer viewership among young Australians is on the rise, bolstered by the Matildas’ impressive performance at the 2023 FIFA Women’s World Cup and the growing interest in domestic leagues.
“The revenue from betting fees is vital for fostering the future of soccer in Australia,” FA representatives state.
The situation is further complicated by an ongoing investigation from Victoria’s gambling regulator into FA’s integrity framework, following two recent match-fixing scandals involving former A-League players. This scrutiny has reportedly prompted FA to demand higher fees to cover the increased costs associated with monitoring and compliance.
Contrarily, bookmakers contend that they already invest heavily in integrity systems and face escalating regulatory expenses nationwide. For FA, these negotiations hold immense stakes. Despite achieving record revenues of $123.7 million in 2024, the organization reported a net loss of $8.5 million due to rising media, marketing, and staffing costs.
Experts indicate that this deadlock could significantly alter how Australian sports manage issues of fairness, financial sustainability, and market reach. If a resolution is not reached, state-level soccer may see a decline in viewership and support, while bookmakers could exit the market to protect their margins.
As the deadline approaches, all eyes are on the negotiations between FA and the betting industry, with potential ramifications for the future of soccer in Australia. Stay tuned for updates as this situation continues to develop.
