Will we See a Ban on Digital iGaming Advertising?

Posted by Harry Kane on Tuesday, September 6, 2022

One of the absent elements of the recent gambling review was a focus on online or digital advertising, which has emerged as a key battleground for responsible gambling lobbyists in recent times. Before the findings of the review were revealed, there were even reports that a complete digital advertising ban could be imposed on gambling operators in the UK.

However, no such recommendation was made, with gambling brands having escaped any advertising ban or widespread restrictions on their digital marketing activity. This will be considered as a win by key stakeholders in the industry, although the regulator has warned that betting brands must do more independently to curb the targeting of young and vulnerable players online.

Despite this, some entities have taken it on themselves to restrict or ban iGaming advertising within their own spheres of control. We’ll explore such instances later in the piece, but let’s first explore the case for restricting digital and social media marketing and why this has become such a key talking point.

The Case for Curbing Digital iGaming Advertising

The case for curbing digital iGaming advertising is backed by comprehensive data, with a particularly wide body of research having been carried out by the University of Bristol. The key takeaway here was that gambling ads and messaging was vastly more appealing to children than adults, although whether this is by accident or design remains a key bone of contention.

The data also suggested that children and young people are vulnerable to gambling ads through a number of different channels, including websites, blogs and social media platforms (whether individuals can open an account from the tender age of 13). This is behind many of the calls for greater regulation on marketing activity, especially in the digital sphere.

In the four years between 2014 and 2018, the total amount spent by iGaming brands on advertising in the US alone grew by 56%, while this trend was prevalent throughout western markets and has accelerated since. In the current marketplace, companies spend at least five times more advertising online than they do on television, which is why kids and at-risk gamblers are so vulnerable online.

Not only is the digital space saturated with iGaming ads, but the associated content is often incredibly well disguised. This makes ads appear harmless and not particularly promotional in nature,

while it also contributes significantly to the fact that such content is nearly four times more appealing to children than individuals aged 18 or older.

When canvasing the opinion of children, it was also discovered that nearly half of the respondents were exposed to this type of ad content on a weekly basis, while approximately 25% encountered it daily. This is highly concerning situation, and one that both brands and regulators have struggled to address with any conviction.

What’s also interesting is the reaction of children when compared to adults. In most cases, people aged over 18 tended to react to promotional gambling ads with annoyance or scepticism, whereas children primarily reacted positively and would commonly look to engage with the content in a constructive manner.

The report concluded with a number of recommendations, including the suggestion that esports gambling ads, which automatically appeal to kids due its association with video games, should be completely banned online. Regulators should also strive harder to regulate content that masquerades as something appealing to children, as this poses the most significant threat.

Regulators were also encouraged to broaden the age range of what constitutes a ‘young person’, from 16-17 to 16-24. At the same time, researchers suggested that the regulator places a particularly stringent emphasis on social media platforms, by only displaying sponsored gambling ads to users who are over 18 and have opted in to receive such content.

Who is Banning Gambling Advertising and Sponsorship?

Despite this body of work and what appear to be relatively sensible suggestions, the gambling review didn’t make any specific recommendation to ban or dramatically curb advertising. Instead, the emphasis was placed on operators to control their content and output, with significant future sanctions likely to be imposed on brands who fail in this regard.

Some organisations and entities have decided to impose their own de facto ban on gambling sponsorship, however, including The Guardian. More specifically, this media brand has initiated a worldwide advertising ban across all of its outlets, including The Guardian, the Observer and the less read Guardian Weekly.

It has attributed this decision to a purely ethical stance, while The Guardian’s Chief Executive, Anna Bateson, recognised that iGaming advertising had the potential to trap gamblers in an “addictive cycle”. This could lead to distress, financial concerns and mental health issues in the worst-case scenario, and the media organisation wanted no part in this particular conundrum.

This ban covers all sponsored gambling ads and media, including sports betting promotions and free bet offers, online casino bonuses and scratch card content. It will also apply on a global basis and across both online and print outlets, although it’s interesting to note that lottery advertising has been excluded from the terms of the ban.

This is also part of a wider ethical stance from The Guardian outlet, which also imposed a similar ban on adverts and sponsored messaging from fossil fuel companies in 2020. So, it is remaining true to its identity and attempting to set an ethical example in the media world, although whether this blazes a trail for others to follow has yet to be seen.

Of course, we’ve also seen Premier League football clubs collectively agree to a complete ban on gambling sponsorship recently, with betting brand logos set to be stricken from

the front of shirts in time for the 2026/27 season. This is still some time away, but it’s a decision that will potentially see clubs lose up to £60 million in total through lost sponsorship deals.

Of course, we have yet to see whether other organisations or sporting bodies will follow suit, while there may well be further research and lobbying pertaining to the prevalence of iGaming advertising online. This will certainly be an interesting space to watch in the future, especially as the UKGC continues to crack down on potentially harmful and ethically questionable industry practices.