The Need For Stricter Regulations on Gambling Advertising and Sponsorship

Gambling advertising has become an increasing source of concern, particularly among children. Research conducted at USW indicates that betting adverts during live sports events raise excitement levels and could cause children to think gambling is part of watching sport.

Gambling advertisers should abide by a set of general rules when advertising gambling products and services, including time restrictions on ads and the promotion of responsible gambling messages.

Legality

Multiple jurisdictions enforce stringent restrictions on gambling advertising. For instance, in the UK it’s overseen by DCMS and Ofcom as well as operators must abide by CAP and BCAP codes on responsible marketing practices. Meanwhile in the US state laws govern advertising of online gambling ads.

Though Mr. Whittingdale did not directly assert a link between gambling advertising and harm, his answer did support using technology to de-target and age-gate online gaming ads; such measures will help ensure they do not reach vulnerable populations.

A recent CAP rule prohibiting gambling ads likely to appeal to children and young persons by reflecting or associating youth culture has already made it more challenging for advertisers who target sports stars and clubs with younger audiences, including football clubs favored by younger audiences. Furthermore, this new regulation could alter sponsorship arrangements between gambling companies.

Regulation

Gambling advertising is a form of promotion used to market casinos, lotteries, video games and bookmakers. Gambling advertising is subject to various regulations worldwide including in the US. Gambling firms should abide by an industry code for socially responsible advertising (opens in new tab) to ensure that their ads do not appeal to problem gamblers and don’t place undue emphasis on money motives for betting.

Advertising should also make clear the terms and conditions of any offers being advertised to children and young persons, such as images or characters with strong appeal to both groups, such as athletes or celebrities.

Some countries impose restrictions on gambling advertisements, like Australia which bans them between 5 AM and 8:30 PM. The UK is considering similar regulations based on evidence rather than punishment; such regulations must include consistent messaging around responsible gambling including self-exclusion tools and moderation policies.

Advertising

Regulators must strike a delicate balance between promoting responsible gambling practices and permitting operators to flourish – this requires working across borders.

Research by IPSOS has demonstrated that advertising messages that target risk factors for problem gambling — such as cognitive errors about winning probabilities or thoughts about using gambling to escape personal issues– are most damaging. Such messaging may be prohibited under ethical codes and regulations such as BCAP/CAP codes in the UK.

Many operators already adhere to regulations prohibiting direct marketing to self-excluded or harm-prone customers, with this likely to become stricter over time. For example, in the UK existing rules prohibit gambling brands from advertising during sporting events; yet this did not stop Paddy Power from capitalising on Luke Littler’s victory at the PDC World Darts Championship in 2022 by sponsoring him and advertising their services during it.

Sponsorship

Sponsoring football clubs by gambling companies is a concerning trend that could normalize gambling for underage people and worsen existing problems for those already gambling excessively. Furthermore, this form of support could exacerbate already established addiction issues amongst users.

Gambling product advertising is legal but must be carefully managed so as to not encourage excessive participation or portray gambling as a path to riches. Furthermore, all terms and conditions must be clearly visible to customers before advertising is presented to children or during sports programs.