The European Union (EU) prohibits all forms of direct advertising aimed at children under 16 years old but allows it for adults provided there is no reference to children or young people. Regulations may include restrictions on broadcasting gambling advertising, advertising placement or content. Many European countries have introduced a ban on TV advertising during the hours when children are watching television. Some countries limit the amount of money that can be spent on certain forms of advertising. Some governments have banned certain forms of gambling advertising, such as billboards and posters near schools.
However, this is not a new idea. For example, the Netherlands has a long history of regulating gambling advertisements. The Dutch government has been banning gambling ads from TV since 2005; in 2007 it extended this ban to include the internet as well; and in 2013 it added digital billboards to that list of prohibited mediums for advertising betting companies’ products. House of Pokies is one of the first online gambling platforms which started to ensure online casino advertisements comply with ANNA Wagering and Ethics Codes of Australia.
The Dutch government has been banning gambling ads from TV since 2005; in 2007 it extended this ban to include the internet as well; and in 2013 it added digital billboards to that list of prohibited mediums for advertising betting companies’ products.
Economic Side of the Question
The gambling industry is an important sector for the European economy. It provides a significant number of jobs, generates large tax revenues and contributes to public finances, pays for social security contributions and supports other economic sectors.
There are almost 12,000 gambling establishments in Europe (both land-based casinos and online sites) which employ over 160,000 people directly or indirectly. The total turnover generated by these establishments exceeded EUR81 billion in 2022 (excluding betting shops).
Advertising is a major source of revenue for the gambling industry. Despite the COVID-19, European gambling enterprises have spent billions of euros on advertising between 2021-2022. The sector has grown significantly over the past decade; total revenue has reached over €81 billion worldwide.
Different Rules & Organizations Responsible for Gambling Ad in Europe
Gambling advertising is regulated in all European countries. The legal basis for the advertising of gambling products and services is found in national laws, which are generally implemented by gambling regulators and/or operators.
While most countries allow some form of gambling advertising, some European countries have stricter rules than others about where it can be placed, how much can be spent on each campaign and how often it can take place.
The different types of organizations that regulate gambling marketing include:
- Government – made up by various ministers who are responsible for regulating the industry; usually set down laws for what is allowed to be advertised and how much money can be spent on each campaign;
- Regulators – body created by government to oversee regulation of specific sectors (e.g., sport betting); sets limits on what companies may advertise as well as fines against those who break these rules;
- Operators – company that operates a given game or machine (e.g., casino) and decides whether or not they will allow certain types of ads within their venue;
- Associations – organization representing multiple operators within an industry (e.g., Interactive Gaming Council); organizes lobbying efforts aimed at influencing lawmakers’ decisions concerning advertisements.
Regulation of Broadcasting Gambling Advertisement
There are three main types of restrictions:
- Age limits – for example, the UK’s Gambling Commission prohibits advertisements from targeting children under the age of 18. The UK also has a watershed rule that prevents gambling ads from being shown during or around programmes aimed at children.
- Warnings – In Ireland, any advertisement must include a warning that gambling is addictive and can cause damage to people’s lives; in Spain and Malta there must be an additional warning that gambling increases the risk of addiction; in France there is a requirement to mention if the odds have been taken into account when calculating winnings; in Austria it is compulsory to show how long it took to win your money back after you lose it (the so called “time limit”).
- Placement bans – In France and Belgium, restrictions apply as regards where certain types of gaming machines can be placed (where minors frequent).
Ban on TV Advertising
Many European countries have introduced a ban on TV advertising during the hours when children are watching television. These bans typically restrict all forms of TV advertising from 6pm to 11pm, and are in place in Austria, Belgium, Denmark, Finland, France, Germany, Hungary, Ireland and Norway.
The reasoning behind these restrictions is that they aim to protect children from being exposed to gambling ads and thereby encourage them to go gamble at a later age. However it would appear that this has not been effective as research shows that children are still influenced by gambling ads even if they cannot view them directly on TV screens.
Furthermore there is no evidence that these bans have led to any decrease in consumption among adults who were previously exposed through televised advertisements upon which they rely heavily for their decision making processes when participating in gambling activities such as sporting events or lotteries (O’Neill et al., 2016).
Budgeting
Some countries limit the amount of money that can be spent on certain forms of advertising. In the United Kingdom, for example, the total spend on gambling ads is capped at £9 million (around $11.8 million USD) for all broadcasters combined. This is done partly because of concerns about children being exposed to these ads and may encourage them to gamble at a young age.
What Are the Main Approaches to Regulating Online Gambling Advertising?
The legal regime governing gambling advertising in the European Union can be split into four general categories:
- Countries where there are no specific regulations prohibiting or restricting cross-border online gambling advertising. These countries include Luxembourg, Czech Republic and Estonia (see “No ban on cross-border advertising”).
- Countries that ban all forms of online gambling advertising (e.g., Austria, France). These countries do not allow any form of online gambling including casino games like roulette or blackjack. Outside these bans there are usually very limited exceptions to them (e.g., lotteries).
- Countries that prohibit certain types of marketing communications for betting companies but allow more general marketing communications outside these restrictions (e.g., Belgium). In most cases these laws apply only when the message originates from a server located within the jurisdiction and is directed at residents or citizens of that jurisdiction; however some countries extend their bans on promoting other parts of their territory as well meaning they will take action against companies based elsewhere who advertise in another country’s media outlets such as newspapers and magazines owned by foreign publishers even if they are not targeting those individuals directly via their websites’ traffic stats.