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Will
restrictions on advertising really reduce the growth of the gambling
industry?
It’s
indisputable that the gambling industry is getting bigger and bigger.
Since the relaxation of limits from the Gaming Act, 2005 the market is
now worth around £14bn which is a colossal growth rate over a decade
from circa £7bn. The biggest driver for this has undoubtedly been the
ready availability of the internet and the ability to play online.
Whether it’s an online
casino,
sportsbook or bingo, the freedom that online betting offered makes it a
far more interesting prospect for most gamblers. One of the major tenets
of the Gaming Act was a relaxation of television advertising that
allowed bookmakers and casinos to advertise more freely. In recent weeks
this decision has been called into question, with attempts to regulate
and restrict exactly what adverts can display. The new laws, that came
into force on April 2nd, 2018, were as follows:
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Restrict ads that create an inappropriate sense of
urgency like those including ’Bet Now!’ offers during live events
-
Curb trivialisation of gambling (e.g. encouraging
repetitive play)
-
Prevent approaches that give an irresponsible
perception of the risk or control (e.g. ’Risk Free Deposit Bonus’)
-
Provide greater detail on gambling behaviour problems
and associated behaviours that should not be portrayed, even
indirectly
-
Prevent undue emphasis on money-motives for gambling,
and
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Provide more detail on vulnerable groups, such as
problem gamblers, that marketers need to work to protect. (from
the Advertising Standards Agency (ASA))
As you can tell from a quick analysis of the above
points, the regulations aren’t intended to curtail the gambling industry
specifically, only to address the issue of problem gambling by altering
what content the adverts can display. These restrictions should, in
theory, not have too dire an effect on the growth of the gambling
industry as the adverts are still being displayed though now merely with
altered content. The curious thing is that evidence reviewed in
developing these guidelines suggests that advertising doesn’t play a
casual or even significant role in problem gambling. The elements of
these adverts that were called into question was the appeal to
individual susceptibilities, such as financial worries or self-esteem
problems, which could have a negative effect and encourage gambling
irresponsibly as a means to alleviate these concerns. It’s clear from
the wording, and the evidence reviewed, that this shouldn’t have a
negative effect on the industry as a whole, only on a negligible
cross-section of problem gamblers who are spurred on by particular
phrases.
While the current limitations are all fairly reasonable, a recent
campaign by the Church of England, led by the Rev. Alan Smith has begun
to demand further restrictions. It’s their belief that while gambling
adverts cannot be shown on television before the watershed (9pm), the
exception that allows them during sports matches has a negative impact
on society as a whole. Additionally, comments from Lord Chadlington, a
Tory peer who conducted a survey via Populus, showed that 65% of 14-18
year olds thought that there was too much
gambling avertising on television, have been calling for a ban on
all gambling advertising during sporting events as well as forbidding
gambling companies from sponsoring any teams.
Unlike ASA limitations, these proposed actions would be likely to have
a far more pronounced effect on gambling companies and, likely, on
sports in general. In recent years, advertising has been switching to a
primarily digital field with a steep decline in television advertising
as shown by ITV’s 5% fall this year, the
biggest dip since 2009. In this changing digital landscape one of
the few industries which is still routinely advertising on television
is, perhaps ironically, gambling. As advertising during sports matches
is an understandable goal for gambling companies, it’s been identified
by the Victoria Derbyshire Progam that around 95% of televised matches
in the UK feature gambling adverts with various levels of intensity.
While the industry has claimed the adverts have limited impact on
gambling rates, it’s clear from the sheer number of adverts, as well as
the large number of teams sponsored by gambling organisations, that this
is an area that appears profitable.
In Australia, they recently introduced a ban on gambling adverts five
minutes before, after and consistently during sporting events. While
this only came into effect this April, seeing what the results are for
betting shops in Australia ought to be interesting as a reflection of
the likely outcome were the UK to implement a similar ban. In contrast
to Lord Chadlington and Rev. Alan Smith, a few other leading voices have
opined that the current state of affairs is perfectly reasonable. Ian
Twinn, the former Director, Public Affairs for the Incorporated Society
of British Advertisers (ISBA), believes that the current gambling
advertising rules are strict and the only way to prevent vulnerable
people seeing the adverts would be a complete ban that would, likely,
have a negative affect on media content, most pressingly
sport.
Whether or not the current standards get tighter, and what effect a
daytime ban would have on the gambling industry (and the sports industry
for that matter) remains to be seen, but with Australia as a case study
we should have an answer soon enough.
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