UPDATE: Major Australian betting companies are pulling smaller soccer leagues off their platforms amid escalating tensions with Football Australia (FA) over new gambling fee proposals. This clash has the potential to make soccer the most expensive sport for bookmakers in the country, surpassing even AFL and NRL.
As of October 2023, the existing deal between FA and leading betting firms, including Tabcorp, Sportsbet, and Entain (owner of Ladbrokes and Neds), is set to expire. Currently, these companies pay FA either 1% of their total bets or 15% of their profits every three months, which has reportedly generated about AUD 9 million (approximately $5.9 million) for FA over the past three years, according to the Australian Financial Review.
In a bid to reshape the financial model, FA proposes a new structure where betting firms would pay fees based on individual matches, with charges set at 1% of turnover or up to 15% of gross profit—whichever is higher. Industry experts warn that this could elevate total fees to nearly 30% of revenue for some games, significantly more than what other major Australian sports currently demand.
This contentious proposal has already led several operators to limit betting options for lower leagues, such as the Victorian State League and NSW League Two. Some have even indicated that markets for the A-League may be cut next if FA persists with the plan.
Bookmakers argue that a match-by-match fee structure would create volatility and complicate cash flow management. In contrast, FA asserts that the revenue generated is crucial for funding grassroots and youth programs nationwide. This dispute intensifies as soccer’s popularity among young Australians surges, spurred by the Matildas’ impressive performance in the 2023 FIFA Women’s World Cup.
Adding to the urgency, Victoria’s gambling regulator has launched a review of FA’s integrity framework following two recent match-fixing scandals involving former A-League players. Observers note that this scrutiny has galvanized FA’s push for higher fees to cover increased compliance and monitoring costs. However, bookmakers claim they already invest heavily in integrity measures and face rising regulatory costs across Australia.
The stakes are high for FA, which reported record annual earnings of $123.7 million in 2024 but faced a net loss of $8.5 million due to escalating media, marketing, and staffing expenses. With gambling revenues being a vital source of funding for community programs, both sides must navigate a resolution swiftly. Failure to reach an agreement could lead to diminished viewership and fan engagement for state-level games, prompting bookmakers to withdraw from soccer altogether to protect their profits.
As this situation develops, the implications for Australian sports could reshape the balance between fairness, revenue, and market reach. Stakeholders are urged to stay tuned for further updates as both parties negotiate this critical financial standoff.
