Bookies Threaten to Cut Soccer Bets Amid Fee Dispute with FA

UPDATE: Australia’s leading betting companies are taking immediate action by removing smaller soccer leagues from their platforms, escalating tensions with Football Australia (FA) over new gambling fee proposals. This conflict could make soccer the most expensive sport for bookmakers in the country, surpassing both AFL and NRL.

As the current agreement with major betting firms like Tabcorp, Sportsbet, and Entain (which owns Ladbrokes and Neds) is set to expire in late October, both sides are at an impasse. Currently, these companies pay FA either 1% of their total bets or 15% of their profits every three months, which has reportedly generated approximately AUD 9 million ($5.9 million) for FA over the past three years, according to the Australian Financial Review.

The FA is proposing a new model that would impose fees based on individual matches, suggesting a payment structure of 1% of turnover or up to 15% of gross profit, whichever is higher. Industry insiders warn that these changes could push total fees to nearly 30% of revenue for certain games, significantly higher than the fees charged by other major Australian sports.

As a result of this ongoing dispute, many betting operators have already begun to limit options for less popular leagues like the Victorian State League and NSW League Two. Some are now cautioning that A-League markets could be next if the FA moves forward with its revised fee structure.

Bookmakers argue that the match-by-match fee model would create financial instability and complicate cash flow management. However, the FA maintains that the revenue generated from these fees is critical for supporting grassroots and youth programs across Australia.

This standoff occurs against the backdrop of increasing soccer viewership among young Australians, fueled by the Matildas’ success at the 2023 FIFA Women’s World Cup and rising broadcast numbers for domestic leagues.

The situation is further complicated by scrutiny from Victoria’s gambling regulator, which is investigating FA’s integrity framework following two match-fixing scandals involving former A-League players. This intensified review has led the FA to insist on higher fees to cover increased monitoring and compliance costs, a stance disputed by bookmakers who claim they already allocate substantial resources to integrity systems and face growing regulatory expenses nationwide.

For the FA, the outcome of these negotiations is crucial. Despite achieving record annual earnings of $123.7 million in 2024, the organization reported an $8.5 million net loss due to rising media, marketing, and staffing costs. Gambling revenue remains vital for funding community-level programs, making this dispute a pressing issue for all involved.

Experts warn that if an agreement cannot be reached, state-level games may suffer a decline in viewership and fan engagement, while bookmakers could withdraw from soccer altogether to protect their profits. The urgency of this situation underscores the delicate balance between sports integrity, revenue generation, and maintaining a vibrant market presence in Australian sports.

The next few weeks will be critical as both sides navigate this contentious debate. Stakeholders are urged to stay tuned for updates as developments unfold, with the potential to reshape the landscape of sports betting in Australia.