May 26, 2017

The names and logos of domestic and overseas gambling brands have become a typical feature of sports coverage in the UK as the sports sponsorship industry has boomed and sports bodies have relaxed their rules regarding betting operators sponsoring clubs and teams.

Alongside the increase in gambling sponsorship activity, advertising spend in general has also risen. Gambling operators spent £118.5m on TV spots in the UK in 2015, compared with £81.2m in 2012. This 46% rise in annual spend may have a positive effect on the UK economy but this also attracts political, regulatory and public scrutiny.

Appropriate content

As the number of adverts increases, it is not surprising that the volume of complaints does too. Whilst the majority of the ASA’s most recent adjudications dealing with gambling advertisement complaints focus on the misleading nature of the adverts (“free bets” in particular), there have also been some surprising ASA decisions which reinforce the ASA’s interpretation of CAP’s rules. The adjudication of 24 August 2016, upholding a complaint against Ladbrokes, considered that Marvel comic characters had particular appeal to children, even if the advertising in question was specifically targeted at the over 18s.

What this Iron Man decision, as well as the ASA’s numerous adjudications on “free bets” illustrates, is the CAP and BCAP Codes are designed to facilitate a broad interpretation, giving the regulator scope to ensure that marketing communications for gambling products are socially responsible and ensuring advertisers have to think broadly regarding the need to protect children, young persons and other vulnerable persons from being harmed or exploited.

Appropriate placement

The placement of socially responsible advertising and the fair treatment of consumers is also of particular interest to the Gambling Commission of Great Britain. Whilst the Commission hasn’t shown much appetite for taking further action against operators with upheld ASA complaints, licensees are reminded of the requirement to comply with relevant advertising standards and codes of practice. With gambling advertisements increasingly under the spotlight, operators should be wary of regulatory action where they continue to promote marketing communications which fall foul of the Codes. In particular, continued breach of the Codes could see clause 6.6 of the Memorandum of Understanding between the Commission and the ASA invoked, which states “if the advertiser refuses to comply with the codes or an ASA adjudication, or has repeated breaches of the codes, the ASA will consider referring the case back to the Commission for possible regulatory action under the Gambling Act 2005. The ASA will consider whether referral to the Commission would be most likely to lead to a cessation of advertising”.

Appropriate timing

A four pronged review in 2014, conducted by the gambling industry and its regulators, found that the Codes that regulate gambling advertising remained broadly effective in protecting people from harm. However it’s now well over a decade since the Gambling Act 2005 removed longstanding restrictions, allowing for the televised advertising of all gambling products. Following the 2014 review, the industry strengthened its voluntary code, including bringing an end to sign-up offers on television before 9pm, yet bingo, lottery and sports betting advertising at televised sporting events is excluded from the television watershed. This means an entire generation of young people has been exposed to this, something which will, no doubt, be addressed in the Department for Culture, Media and Sport’s call for evidence as to whether the right measures are in place to ensure that the young and vulnerable are protected from gambling advertising.

The competitiveness of the UK market means the issues surrounding gambling advertising are unlikely to go away soon. Operators and suppliers should be conscious of the heightened political and regulatory scrutiny of gambling advertising, and will need to respond to any regulatory changes introduced as a result of current reviews and investigations.