Tighter restrictions placed on gambling advertising

The new rules on 'impulsiveness and urgency' are contained in guidance produced by the Committee of Advertising Practice (CAP). The guidance (16-page / 754KB PDF) relates to rules set out contained in UK advertising codes, compliance with which is overseen by the Advertising Standards Authority (ASA).

"In order not to encourage gambling behaviour that is irresponsible, marketing communications should not unduly pressure the audience to gamble, especially when gambling opportunities offered are subject to a significant time limitation," CAP said in the new guidance. "Offers such as live odds or in-play betting – where time limits exist naturally due to the nature of an event – should not be presented in such a way that creates an unjustifiable sense of urgency."

"The same applies to other very short-term promotions where time limits are set by marketers themselves. In such instances, urgent calls to action (for instance, 'Bet now!') or creative approaches, such as those that place emphasis on time running out, are likely to be regarded by the ASA as a breach of these rules because they could pressure consumers into participating when they otherwise would not. Reminding consumers that other time-limited promotional offers are due to expire is likely to be acceptable," it said.

The new guidance also requires that gambling operators "avoid approaches that give erroneous perceptions of the level of risk involved or the extent of a gambler’s control over a bet or gambling in general" in their marketing communications.

"Implying that an activity is without risk, portrayals of risk that are unrepresentative or placing undue emphasis on the extent of control afforded by a facility like ‘cash-out’ are likely to encourage gambling behaviour that is socially irresponsible or could lead to financial, social or emotional harm," CAP said. "They would therefore breach these rules."

Operators' adverts also must not trivialise gambling, or the decision to gamble, it said.

"For example, they should: not encourage repetitive or frequent participation; not encourage people to gamble more than they otherwise would; exercise caution when encouraging people to take advantage of promotions or opening accounts; and not encourage people to spend more than they can afford," CAP said.

"It is likely to be acceptable for marketers to refer to or demonstrate the ease of use of a service or facility such as an app, but they should be careful not to do so in a way that might be problematic under the points above," it said.

The ASA said that evidence review in the development of the new guidance had suggested that advertising "does not play a causal or even significant role in problem gambling or harm in general" and that "problem gambling rates have in fact remained relatively stable during a period of considerable growth in adverting volumes". However, it said that the evidence "points to potential risk factors in the form of claims, imagery or approaches that might unduly influence people to behave irresponsibly", which it said is the reason why "tougher standards" on gambling advertising have now been established.

"The UK government recently moved to apply mandatory conditions on operating licences relating to the EuroMillions lottery draws to address the perceived risk that consumers would place bets on the outcome of those draws rather than participate in them, thereby diverting money away from good causes that benefit from the money raised through those draws," said gambling law expert Christopher Rees-Gay of Pinsent Masons, the law firm behind Out-Law.com. "That move was made on the basis of little evidence."

"It could be argued, given the ASA's own admission on the evidence base (10-page / 854KB PDF), that a similar approach to policy making on gambling advertising standards has taken place here. This is something that is likely to concern gambling operators," he said.

Gambling operators that breach UK advertising rules are liable to be found in breach of their operating licence conditions by the regulator of gambling in Great Britain, the Gambling Commission.

On Wednesday, the Gambling Commission issued a £350,000 fine to ElectraWorks (4-page / 58KB PDF) in relation to gambling advertising failings. The company was responsible for "repeatedly misleading consumers with adverts relating to free bonuses", the regulator said.

Richard Watson, Gambling Commission programme director, said: "This fine should serve a warning to all gambling businesses that we will not hesitate to take action against those who mislead consumers with bonus offers or fail to ensure they are correctly licensed."

Online gambling firms were recently urged to raise standards on the terms and conditions they rely on in relation to bonus promotions amidst scrutiny from the UK's Competition and Markets Authority (CMA).