Gambling advertising in Europe is tightening, raising concerns about maintaining channelisation to licensed operators. Britain and the Netherlands are at the forefront, implementing stricter policies that industry leaders fear could drive consumers to unregulated markets. A discussion with leading figures examined into the challenges of balancing player protection with ensuring legal operators remain competitive.
In This News
Proportionate Regulations Needed
Grainne Hurst, CEO of the Betting and Gaming Council (BGC), emphasizes the significance of proportionate and evidence-based advertising regulations. She highlights that Britain’s betting and gaming ads already prioritize safer gambling, with BGC members dedicating 20% of advertising space to promote responsible gambling. However, she warns that overly restrictive measures could push consumers towards unregulated sectors lacking adequate safeguards. Research from WARC suggests a growing share of UK gambling advertising spend is shifting to unregulated operators, potentially soon comprising the majority. And hurst argues for keeping consumers within regulated systems to maintain industry standards and effective consumer protection.
Focus on Player Protection and Routing
David Yatom Hay, general counsel at Soft2Bet, stresses the need to tailor advertising rules to each jurisdiction, as regulatory landscapes vary across Europe. He advocates for targeting advertising that endangers vulnerable groups, focusing on protecting minors and preventing misleading promotions. Yatom Hay cautions that simply limiting advertising doesn’t address responsible gambling comprehensively or stop vulnerable individuals from accessing online casino platforms. He sees consumer routingβkeeping players within regulated frameworksβas vital for effective harm prevention and emphasizes a risk-based approach to regulation that considers the necessity for visible and responsible advertising.
Competitive Challenges and Enforcement
Andy Danson of Bird & Bird identifies commercial pressures faced by new market entrants needing to advertise to capture market share. Despite compliance, such advertising can spur public and political backlash, prompting regulatory crackdowns. And danson argues that the right to advertise differentiates licensed from unlicensed operators, warning that restrictions impair regulated markets’ competitiveness, especially given rising regulatory and tax challenges. He highlights difficulty in enforcing against unlicensed operators using VPNs and cryptocurrency, escalating the challenge for regulators.
Evidence and Examples from Europe
Filip KneΕΎeviΔ, from Montenegro’s Association of Gambling Operators, points to regional examples to illustrate the perils of excessive restrictions. He cites major declines in channelisation and increased illegal advertising in the Netherlands, and similar trends in Sweden with the grey market’s rise. Montenegro is witnessing these effects firsthand: following stringent advertising bans and hefty taxation on winnings, the illegal market has expanded, aggressively using social media and platforms like KICK. KneΕΎeviΔ advocates for gradually restrictive measures, strategic actions against illicit markets, and maintaining competitive conditions for legal operators with simplified compliance processes and reasonable taxation.
Apprehensions in the Netherlands
Michel Groothuizen, Chairman of the Executive Board of the Netherlands Gambling Authority, cautions about the consequences of strict advertising rules on channelisation. He notes that tougher policies could hinder new players from finding legal services, while illegal operators remain active on social media. Groothuizen stresses continuous monitoring of advertising bans’ impact on market dynamics and the need for European regulators to robustly battle illegal promotions across social media.
The Path Forward
The ongoing adjustments in European gambling advertising regulations reveal a complex balancing act. Regulators and industry leaders must navigate these new challenges. Still, as countries continue to implement these changes, their impact on channelisation and market dynamics will be crucial. European regulators are expected to reassess and refine their strategies for managing gambling advertising in coming months.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
