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High cost of living affects specialty cheese sales but sheep dairy industry still hopeful

High cost of living affects specialty cheese sales but sheep dairy industry still hopeful

Did you know sheep's milk is considered to have more nutrients than cow's milk?
The sheep dairy industry in Australia is small, particularly when compared to regions like the Mediterranean where sheep's milk and cheese are an integral part of people's diets.
But that is not stopping Australian producers and dietitians from wanting to raise awareness about the alternative milk's health benefits and unique taste.
Eat Sustainably nutritionist Amelia Harray said sheep's milk had a higher percentage of protein than milk produced by cows or goats.
"With that comes a higher amount of calcium, phosphorus, manganese, zinc, and all these other really essential nutrients that our bodies need to stay well each day," Dr Harray said.
Dr Harray, who is also a researcher with the University of Western Australia's medical school, said despite the health benefits of sheep's milk, it would likely not be a viable option for people with a dairy allergy.
"Many people who have a cow's milk protein allergy will also react to milk from other mammals, including sheep and goats," she said.
Cambray Cheese, located about 240 kilometres south of Perth, is Western Australia's only commercial sheep milk and cheese producer.
Owner Tom Wilde said he was "spreading the word" as much as possible about the benefits of sheep dairy products.
"When we do the farmers' market in Margaret River every weekend, people have a try [of our products] and we can tell them about how it's a lot better for your gut and easier to digest," he said.
"Traditionally, people are looking for goat's milk and cheese. A lot of people don't even know that there's sheep's milk or sheep's cheeses around, so it's just about educating people."
Mr Wilde said Cambray Cheese sold its first batch of sheep's milk in 2024 for $12 a litre, about three times the price of a litre of cow's milk.
"We were worried that people wouldn't be able to afford the price that it needed to be because it's expensive milk, but there were no issues. People absolutely loved it," he said.
"The milk is very sweet compared to cow's milk, and it's really nice and thick. It's lovely milk.
Meredith Dairy, a family farm located 120 kilometres west of Melbourne, is Australia's largest sheep and goat milk and cheese producer.
Director Julie Cameron said sheep and goat dairy products were generally more expensive due to the extensive labour requirements.
"We can get a litre of milk a day from a sheep, we can get 3 litres from a goat, but if you're a cow dairy farmer, you can get between 15 and 40 litres a day," she said.
Due to improvements in animal production and automation, Ms Cameron said she had only raised her prices once in the past three decades.
She said the demand for specialty cheeses had fallen recently as a result of the current "economic crisis".
Despite this, Ms Cameron said she remained hopeful the situation would turn around.
"We talk to the dairy buyers in the supermarkets and they say sales are slow for specialty cheeses, which is sad, but maybe people don't have that spare money for discretionary purchases of luxury items like mould-ripened cheeses or blue cheeses or imported cheeses," she said.
"But I have faith that the economy will pick up, and I'm sure the sales of these specialty cheeses will pick up again."
Mr Wilde said he would like to see more farmers give sheep milk production a go.
"It's probably one of the biggest industries of start-ups and failures in Australia," he said.
"There are not many sheep dairies still running in Australia because it's very labour-intensive.
"[But] if you love sheep, then it's worth it.
"We would actually love to be able to buy sheep's milk from other farmers. If that was an option, then we could focus on the cheese side of things."
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Dr Boreham's Crucible: Telix has homework but remains dux of radioimaging class
Dr Boreham's Crucible: Telix has homework but remains dux of radioimaging class

News.com.au

time6 minutes ago

  • News.com.au

Dr Boreham's Crucible: Telix has homework but remains dux of radioimaging class

With multiple clinical trials and approval applications in train, nuclear medicine superstar Telix Pharmaceuticals (ASX:TLX) is like one of those irritatingly brilliant all-round students. We're thinking of the straight-A school captain who stars in the school play, whilst padding up for the First XI in between clarinet lessons. But when Goody Two Shoe's Latin grade slips to B+, panic ensues – mainly on the part of overbearing 'parents' (investors). Last month, Telix experienced the corporate version of such angst when it revealed the US Securities and Exchange Commission (SEC) had varied subpoenaed 'various documents and information'. These relate mainly to Telix's disclosures about its prostate cancer therapeutic program. While the company dubbed the entreaty a 'fact finding request', investors birched the stock by 15%. Telix has a nearer-term focus on winning US Food & Drug Administration (FDA) approval for two imaging products and says the longer-term therapy programs will continue unchanged. But the mysterious episode is not the first time that Telix has slipped up. In April, the FDA knocked back Telix's marketing application for its brain cancer (glioma) diagnostic, telling the company to do more homework. Management said the setback (by way of a Complete Response Letter) was merely temporary and the company would do what Headmaster requested. A year ago, the FDA also rejected the company's filing for its kidney cancer diagnostic Zircaix, on account of an 'unacceptable' manufacturing defect. Telix founder, CEO and head prefect Chris Behrenbruch dubbed the glitches 'relatively minor and fixable'. Indeed, the company re-filed the application and the market awaits an FDA decision by the end of the month. Telix machine is clicking along To date, Telix has derived most of its revenue in the US, from its approved prostate cancer imaging agent Illuccix. Illuccix is a kit for preparing gallium-68 gozetotide – more commonly known as a PSMA-11 injection – for positron emission tomography (PET) scans. Illuccix is used for prostate cancer patients suspected of having either metastasised growths, or a recurrence based on elevated PSA (prostate-specific antigen) levels. Elevated levels in the blood of PSA, a protein, can be a marker of prostate cancer. PSMA (prostate-specific membrane antigen) is a protein found on the surface of prostate cancer cells. Illucix is approved in 17 countries, including the US, the UK, Brazil, Germany, France, Canada and here. In March, the FDA approved second diagnostic, Gozellix (for metastatic castrate resistant prostate cancer). Telix hopes to launch Gozellix in the US in the current quarter. A bit of history Dr Behrenbruch founded Telix in 2015 out of a 'deep frustration' that there was a burgeoning interest in nuclear medicine technologies, but few commercial players. In early 2017 Telix acquired the Dresden-based radio-pharmaceutical outfit Therapeia, founded by Dr Andreas Kluge. Dr Kluge retired from the board in September last year. Telix listed in November 2017, after raising $50 million at 65 cents apiece. In November 2024 the company listed on Nasdaq, having abandoned a $300 million IPO in favour of a $650 million non-US corporate bond issue. Dr Behrenbruch was the executive director of the now defunct Factor Therapeutics and was also on the board of the very un-defunct pancreatic cancer tearaway, Amplia Therapeutics. In 2020, Telix inked a 10-year deal with China Grand Pharmaceutical, worth 'up to' US$225 million from market authorisation. The Hong Kong-based entity became the exclusive partner in greater China for any approved Telix therapy. Telix remains Melbourne based, but most of its commercial activity is in the US. Good golly, it's Gozellix In March this year the FDA approved the company's gallium isotope-based Gozellix, for PET scanning of lesions showing PSMA. While not an expansion to a completely new indication, Gozellix extends the company's US prostate cancer imaging market reach by an estimated 5-10%. Gozellix is for prostate cancer patients with suspected metastasis, who are candidates for initial definitive therapy (prostate removal or broader radiation treatment). It's also for those with suspected recurrence, based on elevated PSA levels. 'The ability to reliably deliver the product much further from its point of production means Gozellix can reach PET cameras that are currently not served by any PSMA imaging providers,' the company says. Gozellix has a longer shelf life of up to six hours, about three times more than Illucix. It can also be used on older scanning machines. On the acquisition trail To expand its repertoire and bolster its manufacturing oomph, Telix has continued an acquisitive splurge. In January Telix acquired a 'proprietary novel biologics technology' from antibody engineering company Imaginab Inc. The platform avails of small, engineered antibody formats that enable specific radiation targeting of cancer. The deal delivers a 'state-of-the-art' research facility in Los Angeles, adding to existing capacity at Sacramento, Angleton (Texas) and across the border in Vancouver. In September 2024 Telix spent $388 million to acquire RLS Radiopharmacies, to expand its North American manufacturing and distribution footprint. RLS derives revenue from providing radiopharmacy products to third party clients. In April, the company bought the Austin-based Isotherapeutics (radio-chemistry services) and the Canadian radio-isotope producer Artms Inc. Let's get clinical It's hard to do justice to Telix's extensive clinical program in a few paragraphs, but here goes … By the end of the year, the company should unveil an initial safety and dosing readout pertaining to its phase III prostate cancer therapy candidate, the lutetium-based TLX-591. The study, Prostact Global, has enrolled 30 men for the part one phase. These patients have PSMA-positive metastatic castrate-resistant prostate cancer. These men are also treated with the standard-of-care chemotherapy drugs, or the standard-of-care alone. To date, TLX-591 has been evaluated in 242 patients across eight phase I/II studies, with 'evidence of anti-tumour effect and a clear dose response profile for key measures of efficacy.' Telix also has mid-stage brain and kidney cancer therapy programs and another one for bone marrow conditioning. Telix also runs earlier stage programs for musculo-skeletal conditions including soft tissue sarcoma, bone metastases and 'pain palliation'. Readers should peruse the company 127-page investor presentation from June 11, but only if they are feeling strong. Finances and performance Telix reported revenue of US$204 million for the June 2025 quarter, up 63% year on year and a 10% increment on the March 2025 quarter. (As of January this year, the company reports in US dollars.) Sales of Illuccix accounted for US$154 million, up 25% year on year. RLS contributed US$46 million of sales, 39% higher than the March quarter. Dr Behrenbruch notes Illuccix dose volumes rose 7%, quarter on quarter. He says despite 'emerging competitive pricing pressure', Telix has 'effective strategies' to maintain average selling prices. Not irrelevantly, Gozellix in July was granted a permanent Healthcare Common Procedure Coding System code. Telix expects to obtain Transitional Pass-Through (TPT) payment status, which provides additional Medicare reimbursement to hospitals using innovative medical devices or drugs. TPT should apply from October 1 with reimbursement of around US$1000 per dose, almost twice that applying to Illuccix. In calendar 2024, Telix expended US$195 million on research and development, up 50%. This year the number should be 20-25% higher again. Telix has maintained calendar 2025 guidance of US$770-800 million, having chalked up first half revenue of US$390 million. We'll know about the innards of Telix's financials at its full-year results on August 21. Over the last 12 months Telix shares have irradiated between $17.44 (early September last year) and a record $31.14 in late January this year. In November 2017 the shares were worth 13 cents. Telix trumps tariffs with US manufacturing Telix says it won't be affected by Trump's drug pricing and tariff proposals. Given Telix's just-in-time products are made in the US out of necessity, they are as American as apple pie and a Colt AR-15 rifle under the bed. 'This will continue to be the case for new products the company expects to launch in 2025,' the company says. As for drug pricing, The Trump administration plans to benchmark certain local therapeutics against those charged in the cheapest of the industrialised nations. Telix reckons it's in the clear because 'localised production makes international pricing comparisons challenging to benchmark'. In any event, the company promises 'pharmaco-economically defensible' pricing. What the brokers say Broking analysts maintain their faith in Telix, despite the distraction of the SEC probe (if we can call it that) and stiffening prostate imaging competition. Broker Jefferies says such SEC entreaties are common, but the issues might take two years or so to resolve. UBS suggests any disclosure shortcomings may relate to Telix's dual ASX/Nasdaq listing, with the company needing to satisfy different requirements across the Pacific. On competition, UBS notes the 7% uptick in Illuccix sales shows Telix is winning market share in a hotter market. The firm believes the launch of Gozellix (and its TPT status) has relieved some of the pricing pressure. UBS values Telix at $36 a share, while Jefferies and Bell Potter plump for a $34 price target. The latter does so on the expectation of FDA approval of Zircaix. UBS says the current valuation assumes 'total scientific and clinical failure' of the therapeutic programs. Valuing the stock at $35, Wilsons says Gozellix provides 'exciting upside' and Telix has 'so many options available to it both competitively and operationally'. The only Grumpy Bob is Morningstar, which in April described Telix as overvalued by about 40%. The research house opined Telix's product pipeline remained 'commercially unproven in an increasingly competitive market'. Dr Boreham's diagnosis Telix faces a pile of homework, but we concur the company can remain dux of the radioimaging class despite the regulatory issues. We should stress that Telix is solidly profitable: UBS plugs in a net profit of $138 million for the 2024-25 year just gone, rising to $480 million within two years. Telix cites a current US prostate cancer imaging market at US$2.5-3.5 billion. But with expanded indications, this figure swells to US$6.7 billion across 1.7 million scans annually. One might think the medical world had nuclear diagnostics down pat by now, but evidently there are isotopes and there are isotopes. In the past, Dr Behrenbruch has described Zircaix as potentially bigger for Telix than Illuccix. Not that he expects the prostate business to slow down. Beyond imaging, if Telix can crack a better therapy for the key cancers in its remit, then its $7 billion market valuation looks only the start. At a glance ASX Code: TLX Share price: $18.53 Shares on issue: 338,399,059 Market cap: $6.27 billion Co-founder and CEO: Dr Christian Behrenbruch Board: Tiffany Olson(chair), Dr Behrenbruch, Dr Mark Nelson, Jann Skinner, Marie McDonald (chairman Kevin McCann retired in May 2025) Financials (June quarter 2025): revenue US$204 million (up 63%) Calendar 2024 year: revenue $783 million (up 56%), adjusted earnings before interest, tax, depreciation and amortisation $99.3 million (up 70%), net profit $49.9 million Major shareholders: Gnosis Verwaltungsgesellschaft (Dr Kluge) 6.88% Elk River Holdings (Dr Behrenbruch) 6.2%, Grand Pharma (China Grand Pharmaceuticals) 3.3%.

MoneyTalks: Summit Biotech Fund's three standout ASX healthcare stocks
MoneyTalks: Summit Biotech Fund's three standout ASX healthcare stocks

News.com.au

time6 minutes ago

  • News.com.au

MoneyTalks: Summit Biotech Fund's three standout ASX healthcare stocks

MoneyTalks is Stockhead's drill down into what stocks investors are looking at right now. We tap our list of experts to hear what's hot, their top picks and what they're looking out for. Today we hear from Australia's Summit Biotech Fund manager Reece O'Connell. With experience trading through multiple economic and market cycles, Reece O'Connell has developed a long-term investment approach focused on preserving and growing capital. In a career that has taken him from Perth to London and back again, he has worked closely with high-net-worth and wholesale investors, tailoring strategies to meet their objectives while navigating changing market conditions. At Summit Biotech Fund (SBF) he aims to provide long-term capital growth by investing in a portfolio of life science companies where innovation plays a crucial role in improving global health and economic outcomes. This includes biotechnology, pharmaceuticals, medical devices and equipment, medical data, information technology (e-health), and robotics. And in some good news for the fund, a rotation back into the healthcare sector appears to be gaining momentum with the S&P ASX 200 Health Care index rising 9.05% in July. "The healthcare sector has been the worst performing sector for two years and there's great positioning in quality healthcare names before the sector turns," he said. "We see these sector rotations every three to five years and I believe the ASX healthcare sector represents good value and plenty of upside in quality names with strong management." Here's three companies Summit Biotech Fund has invested in and why. Arovella Therapeutics (ASX:ALA) SBF is a major shareholder in Arovella, which is developing a next-generation cell therapy platform based on invariant Natural Killer T (iNKT) cells engineered with Chimeric Antigen Receptors (CARs) to target specific cancer antigens. Unlike traditional CAR-T therapies, Arovella's approach uses healthy donor cells to create off-the-shelf treatments, which reduces cost, complexity and time to treatment — the major issues currently faced by CAR-T companies. Arovella's lead candidate, ALA-101, targets CD19-positive blood cancers, and its pipeline encompasses therapy development for solid tumours such as gastric and pancreatic cancers. O'Connell reckons Arovella is in a hot area of cancer research. Nasdaq-listed MiNK Therapeutics recently soared following publication of a case report in the peer-reviewed Oncogene journal, detailing a patient with advanced, treatment-refractory testicular cancer who achieved complete remission after receiving its lead product iNKT Agentâ€'797, in combination with the immune checkpoint inhibitor nivolumab. "Arovella presents an opportunity in a rapidly growing sector, with a differentiated platform and strong early-stage clinical momentum," O'Connell said. "The company is the only ASX-listed biotech delving into CAR-iNKT therapies and one of only a handful globally." He said Arovella was well funded, finishing Q4 FY25 with cash of $20.9 million, which should fund the company through to completion of patient enrolment for its phase I clinical trial for ALA-101 n non-Hodgkin's lymphoma and leukaemia patients exhibiting the CD-19 biomarker – the target its CAR-iNKT cells recognise. The funding will also support the advancement of the company's solid tumour programs (CLDN18.2-CAR-iNKT targeting gastric cancer) and its armouring program (IL-12-TM). "ALA presents a highly compelling investment opportunity over the next six to 12 months, given the competitive landscape and the deals being struck for allogeneic assets and platforms," O'Connell added. SBF is a significant shareholder in Tryptamine, a clinical-stage biopharmaceutical company developing next-generation psychedelic medicines for neuropsychiatric conditions. Its lead program, TRP-8803, is a proprietary, IV-delivered formulation of psilocybin designed to provide more precise dosing and improved patient tolerability compared to oral psychedelic treatments. Phase 1b trials have already shown the drug to be safe and well tolerated in obese and non-obese participants. The company recently kicked off a world-first psilocin trial with TRP-8803 targeting Binge Eating Disorder (BED). The study, run in collaboration with Swinburne, will assess TRP-8803 when administered with psychotherapy with the goal to evaluate safety, feasibility and efficacy in adults diagnosed with BED. For O'Connell when analysing a biotech it as much about who is running the company as it is about the science. "One of the most important investment themes I always look for is a material monetary investment by directors in a company," he said. "Too many small ASX-listed companies have boards that aren't truly aligned with shareholders. "The number one way to be aligned is to have directors putting in their hard-earned cash like us. In this case, TYP ticks all the boxes.' He said directors, management,and major shareholders were collectively invested for more than $9m, with CEO Jason Carroll personally contributing more than $1 million. Carroll's 30-year career in big pharma includes two decades at Johnson & Johnson, where he led the strategy that doubled US sales of Remicade — a blockbuster IBD drug that ultimately reached US$10bn in annual global sales. O'Connell said other board members brought similar firepower. Executive director Chris Ntoumenopoulos was involved in the growth of Race Oncology (ASX:RAC) from $10m to north of $200m, founded former ASX-listed ResApp Health, which was acquired by Pfizer for ~$200m, and has helped double Island Pharmaceuticals' (ASX:ILA) value since joining its board. As part of the last raise experienced biotech investor Dr Daniel Tillett joined the Tryptamine board as a non-executive director and became a cornerstone investor. Tillet also cornerstoned a raise in Race Oncology in its early days and now leads it as CEO and managing director. Recent clinical progress provides Tryptamine with valuable proprietary data as its seek to advance the use of TRP-8803 in patient-specific indications. "With a differentiated psychedelic platform, directors heavily invested alongside shareholders, and multiple catalysts on the horizon, Tryptamine is emerging as one of the more compelling plays in the sector," O'Connell said. SBF also holds a strong position in NeuroScientific, which O'Connell said was positioning itself as a serious player in the fast-growing field of stem cell therapies for immune-mediated diseases, underpinned by its recently acquired StemSmart platform. The patented mesenchymal stromal cell (MSC) therapy has shown strong early results including a 53% remission rate in a phase II trial for refractory Crohn's disease and outperforming Humira, the long-time anti-inflammatory drug used as a standard of care. It also showed high response rates in a phase I trial for steroid-refractory Graft-versus-Host Disease (GvHD). "With the global markets for Crohn's and GvHD forecast to reach US$25 billion combined by 2035, StemSmart is tapping into significant unmet needs," O'Connell said. He also sees validation from the sector's leader Mesoblast (ASX:MSB), which recently secured US Food and Drug Administration (FDA) approval for its MSC product and now commands a $3.1bn market cap. He said by comparison, Neuroscientific trades at just ~23 cents but carries a midpoint valuation of 60 cents, representing around 161% upside based on a probability-adjusted DCF model assuming modest success rates and future partnerships. This assumes modest 20% success rates, 25% market penetration in Crohn's and potential partnerships with big pharma to fund late-stage trials. With a Special Access Program about to generate real-world data, plans to initiate Phase II trials in 18–24 months, and expansion into additional inflammatory and lung diseases, StemSmart offers a scalable pipeline. "For investors looking at the MSC space NSB could be an early-stage, high-upside opportunity positioned to follow Mesoblast's trajectory as the market matures," he said. The views, information, or opinions expressed in the interview in this article are solely those of the interviewee and do not represent the views of Stockhead. Stockhead has not provided, endorsed or otherwise assumed responsibility for any financial product advice contained in this article. Disclosure: Summit Biotech Fund held shares in Arovella, Tryptamine Therapeutics and NeuroScientific Biopharmaceuticals at the time of writing this article.

‘Pokie in your pocket': How Aussie teens are getting hooked on gambling
‘Pokie in your pocket': How Aussie teens are getting hooked on gambling

News.com.au

timean hour ago

  • News.com.au

‘Pokie in your pocket': How Aussie teens are getting hooked on gambling

'Betting on horses, dogs, footy, basketball — in class, during lunch, all that.' In a viral TikTok interview earlier this year, a 17-year-old student made a stunning admission. 'People in your class bet?' asked Steve Ryan, co-founder of matched betting website The System. 'One hundred per cent — majority of them,' the teen said. 'Do the teachers not say anything?' Ryan asked. 'Teachers don't see it,' the student replied, adding that some were aware of the problem. 'Oh well, yeah, we'll talk to some of the younger teachers saying, 'Oh, I've got a multi on.' They just don't really care,' he said. The teen revealed that unlike warnings about pornography, there was no gambling awareness education at his school. 'It's not mentioned in our school,' he said. 'I haven't heard anything about gambling in any of my classes.' The System, which claims to 'show Aussies the dangers of gambling and then teach them how to make profit' through risk-free matched betting, humorously captioned the clip, 'Are Aussie teenagers doomed?' But it's a serious question. Australians lose an estimated $31.5 billion a year on gambling — the highest per capita losses in the world — but more worryingly, many Aussies start well before the legal age of 18. Experts say the rise of social media gambling influencers, the proliferation of sports betting apps and illegal online casinos, and 'conditioning' from an early age through gambling-style 'lootboxes' in video games, are turbocharging the problem. 'Covid changed everything when it came to gambling,' said Nicola Coalter, a Darwin-based psychologist and gambling expert. 'It took us online so much, that's when the exponential growth in gambling participation seemed to happen. In my private practice I have seen people as young as 16 around gambling and sports betting. I've worked with someone who lost $20,000 in two days.' Psychiatrist and author Dr Tanveer Ahmed said maybe five years ago he wouldn't have thought to ask a 15-year-old patient about gambling. 'I might ask them about vapes, marijuana, excessive video games, but this is quite a new thing you might ask them,' he said. 'There's more evidence of adolescent gambling and it's partly driven by the online space. The earlier you are exposed to it the more likely you are to develop addiction.' Various self-reported surveys, including by NSW and Victorian state governments, have put the rates of underage gambling in Australia at about 30-40 per cent. Among 18- and 19-year-olds, that figure rises to nearly half (46 per cent). More than 902,000 under-20s have gambled in the last year, of which 600,000 were aged 12 to 17, according to recent analysis by the Australia Institute. Putting that figure in perspective is a truly startling comparison. 'Australia's teenagers are now more likely to gamble than they are to play any of Australia's most popular sports,' the Australia Institute's Matt Saunders and Morgan Harrington wrote in a March discussion paper. 'The 902,717 12- to 19-year-olds who gamble is more than the 484,490 who play soccer, or the 439,773 who play basketball, which are the two most popular sports among this age group.' Their report warned teens were 'losing big'. 'Annual expenditure on gambling among teenagers is an estimated $231 million, or an average of $86.72 per teenager per year,' they wrote. 'Of this, 12- to 17-year-olds spend around $18.4 million a year on gambling activities — this is about $30 a year for each underage teenager that admits to gambling. This is relatively small compared to the $213 million a year spent by 18- and 19-year-olds. This is $321 per 18- and 19- year-old, or a staggering $698 a year if limited just to those who do gamble.' Luca Kante, 23, one of the country's most popular gambling influencers with nearly 230,000 followers on Instagram, has 'gambled since the day I turned 18' and firmly believes 'if you're an adult you can make your own decisions'. The former Griffith University student stresses, however, that 'with age, I'm very big on that'. 'If you're underage that is just absolutely a no-no,' he said. But Kante conceded at least some of his fans were underage, saying he had been approached in public for a photo by followers as young as 16. 'Obviously I'm not going to say no to a photo, but I'm just going, 'How do you even know who I am?'' he said. 'Times have changed. Vaping and stuff, I didn't do that [when I was their age]. It's the same with gambling.' Dr Ahmed said there was a 'huge overlap' between excessive social media use, excessive video game use and gambling. 'There's a gamification component, there's a chase reward, you lose time in a type of flow state where you're totally absorbed,' he said. 'It's such a sophisticated way of exploiting the adolescent brain, which is extra-impulsive and desperate for social approval, and their reward circuits are still immature so they're just super exposed. It is essentially a dopamine hack.' Addiction to video games and gambling are both now clinically recognised behavioural disorders, and there are growing calls for excessive social media use to be added to major diagnostic systems like the American Psychiatric Association's Diagnostic and Statistical Manual of Mental Disorders (DSM) and the World Health Organization's International Statistical Classification of Diseases and Related Health Problems (ICD). All three rely on ever more sophisticated methods of hacking the human brain's reward systems — which have been well understood since American psychologist B.F. Skinner's famous 'Skinner box' experiments on rats and pigeons nearly in the first half of last century. 'This isn't just content, it's behavioural modelling,' Ms Coalter said. 'These influencers are walking reinforcement schedules. From a behaviourist perspective, those accounts are textbook examples of what's called operant conditioning.' The key element of operant conditioning — a concept in behavioural psychology pioneered by Skinner — is the randomness of rewards. Just like a pokie player never knows when they'll hit a feature, the 'doomscrolling' social media user is waiting for that next interesting post to pop up on their feed. 'That unpredictability drives engagement,' Ms Coalter said. 'It's the same old reinforcement loop under a new skin. That same schedule drives both pokies and compulsive social media use. Scrolling becomes the cue, gambling becomes the behaviour — cue, behaviour, reward loop. When we're young we might not be able to gamble yet, that's OK, it's all being cued up for us.' She added, 'We're watching a whole generation get conditioned into gambling the way they were conditioned into scrolling.' From finely tuned 'return rate' algorithms and 'losses disguised as wins' to physiological stimuli like colourful characters, upbeat jingles and even the smell of the gaming room itself, the pokies industry has turned the art of separating punters from their cash into an exact science. '[Electronic gambling machine] design very successfully employ psychological principals to maximise users' bet sizes and machine usage,' Monash University gambling researcher Dr Charles Livingstone wrote in a 2017 policy paper. 'These characteristics have the effect of increasing the addictive potential of EGMs.' But Ms Coalter said sports betting apps and other types of gambling popular with teens could be equally harmful. 'Pokies [are designed] to extract as much as possible within a short amount of time,' she said. 'When it comes to other types of gambling, those reinforcements are still at play, just timed differently. Modern sports betting and apps, that's just like a pokie in your pocket.' She added that for impressionable young teens, watching their favourite influencer gambling online was a powerful 'social learning' tool. 'The ones watching those getting rewards with money, attention, with clout, that's like vicarious reinforcement,' she said. 'It's pretty powerful. The reward might not be money, it's often the emotional stimulation.' Indeed, she noted at least part of the appeal was watching influencers lose eye-watering amounts. 'You've got these influencers saying things like, 'I lost $10,000 last night but it's part of the game,' and young people nodding along in the comments,' Ms Coalter said. 'They're not just influencers, they're behaviour shapers. We're watching what often is referred to as disordered gambling behaviour get rebranded as content. That's not informed choice, that's learnt behaviour. We didn't let tobacco influencers target kids but that's essentially what's being done at the moment.' Dr Ahmed agreed that the glamorisation of gambling losses was insidious. 'Underneath that is 'I can afford to lose that',' he said. 'It's a bit like going off a big jump with your mountain bike. There's an element of flexing, I think males in particular can be attracted to that.' More broadly, Dr Ahmed said teens increasingly viewed the online environment as a place to rebel, making gambling 'quite attractive on that front because it does feel a bit naughty'. He said it was 'not dissimilar' to the appeal of controversial influencer Andrew Tate. 'Tate will have some misogynistic idea but wrapped up in a lifestyle that's attractive for a lot of young men — great body, hot women, going on nice holidays,' he said. 'You can be popular, you can buy nice stuff, and linked to that here's this fun thing you can do with your friends. That's more attractive to adolescents. They're going to be very socially driven, it's all about peer belonging. They're all about self-comparison, they're more impulsive and they're less able to quantify risk.'

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