Major Australian betting companies have begun withdrawing options for smaller soccer leagues from their platforms as they dispute new fee proposals from Football Australia (FA). This disagreement could potentially make soccer the most expensive sport for bookmakers in the country, surpassing the Australian Football League (AFL) and the National Rugby League (NRL).
Proposed Changes Could Raise Costs for Bookmakers
The existing agreement between FA and prominent betting firms such as Tabcorp, Sportsbet, and Entain, which owns Ladbrokes and Neds, is set to expire at the end of October 2023. Currently, these companies pay either 1% of their total bets or 15% of their quarterly profits, a deal that has generated approximately AUD 9 million (USD 5.9 million) for FA over the past three years, according to the Australian Financial Review.
FA is proposing a new model that would require betting firms to pay based on individual matches, with fees set at 1% of turnover or up to 15% of gross profit, whichever amount is higher. Industry insiders suggest that this change could push total fees to nearly 30% of revenue for some games, significantly exceeding the fees charged by other major Australian sports.
In response, many operators have already reduced betting options for leagues such as the Victorian State League and NSW League Two. Some have indicated that if FA implements the proposed changes, markets for the A-League could also be affected.
Impact on Grassroots Programs and Regulatory Scrutiny
Bookmakers argue that match-by-match fees would create financial instability and complicate cash flow management. On the other hand, FA contends that the revenue generated from these fees is crucial for funding grassroots and youth programs across Australia. This argument gains weight as soccer’s popularity grows, particularly among young Australians, driven by the Matildas success during the 2023 FIFA Women’s World Cup and increased viewership for domestic leagues.
The situation is further complicated by scrutiny from Victoria’s gambling regulator, which is reviewing FA’s integrity framework in light of recent match-fixing scandals involving former A-League players. This examination has reportedly spurred FA to seek higher fees to cover the increased costs of monitoring and compliance.
Bookmakers counter that they already invest significantly in integrity systems and face rising regulatory costs across the country. For FA, the outcome of these negotiations holds significant importance. Despite recording annual earnings of AUD 123.7 million in 2024, the organization reported a net loss of AUD 8.5 million due to escalating media, marketing, and staffing expenses.
Experts suggest that the ongoing deadlock could reshape how Australian sports balance fairness, revenue, and market reach. If a resolution is not reached, state-level leagues may risk losing viewership and fan engagement, while bookmakers might withdraw from soccer altogether to protect their profitability.
