September 13, 2017

Last week’s news saw reports that Sky had decided to end its affiliate programme and 888 and Ladbroke’s decision to scale back theirs in the UK and The Netherlands. These decisions are better understood in light of today’s ASA rulings against Sky Betting & Gaming, Casumo Services Limited, 888 Holdings and Ladbrokes for “socially irresponsible” promotions which the operators blamed on rogue affiliates.

The affiliates’ advertisements for Sky Bet, 888 and Ladbrokes were all very similar: an advertorial featuring “William” who tried to escape depression resulting from a £130,000 debt amassed from his wife’s cancer-related medical treatment by using bonuses and free spins to try for a £1.06m jackpot. Another ad in support of Casumo, suggested that “William” could solve solved his debt problems when he won “over 30 times his annual salary in a single spin”.

Suggesting that gambling could provide an escape from depression and solve cancer-related medical bills are clear breaches of several of the advertising rules published by the Committee of Advertising Practice (CAP). Whilst it might seem obvious that these suggestions would be in breach of CAP’s non-broadcast rules on gambling, the fact that these advertisements were created by affiliates highlights the various operators’ inability to influence or control the advertising created by their sub-contractors. The rulings against the various operators by the Advertising Standards Authority (ASA), reminds them that advertising compliance is still their responsibility.

None of the operators’ responses that the ads were not authorised by them were taken into account by the ASA – neither was the point that the ads breached the operators’ terms with the affiliates, nor 888’s statement that the ad had both been removed and they had ended their agreement with the affiliate in question.

These decisions only serve to reiterate that an obviously identifiable relationship is needed if an operator is going to use affiliates in marketing and that the affiliate needs to be able to demonstrate its own understanding of the various advertising rules, which any advert it produces on behalf of the betting operator must comply with. Whilst a betting operator’s contract with an affiliate might force a discussion around advertising compliance, this is no get out of jail free card for the operator as Sky Bet, 888, Casumo and Ladbrokes now know only too well.

Does this mean the decline of the marketing affiliate in gambling advertising? Perhaps it opens the door for those who can demonstrate a good understanding of gambling advertising compliance to seize the market instead.