High-profile Bulgarian media companies have raised their voices in opposition to a proposed ban on gambling advertising, expressing concerns over its potential impact on media revenue streams and journalistic freedom. They criticized the government for lacking foresight, alleging that some parties would use the situation to influence the media space before the upcoming elections.

The Changes Could Do More Harm than Good

The new bill calls for a prohibition on gambling advertisements across various media platforms, including television, radio, newspapers, and online sites. While outdoor advertising in specific locations would still be permitted, the proposed ban has drawn criticism from media industry stakeholders who believe the bill does not aim to protect consumers but to suppress freedom of speech.

Former prime minister Nikolai Denkov highlighted the threat the ban poses to media outlets, emphasizing the significant revenue loss and increased dependency on other funding sources it could entail. He also drew attention to rising concerns about the potential suppression of media freedom, with industry experts warning against the adverse effects of legislative interference.

Let’s hope that (the proposal) is an oversight. The worse option is if somebody in a position of power – in this case, legislative power – is trying to strike a targeted blow against media freedom.

Nikolai Denkov, former PM

Leading journalists noted that social media platforms, banners, and targeted advertisements would remain unaffected, expressing concerns over the rising prevalence of underage gambling. They highlighted that vulnerable groups like children did not engage with traditional media, and the bill would only increase the prevalence of gambling ads in the digital space, exacerbating existing issues.

Leading media conglomerate Nova Broadcasting Group expressed apprehension over the ban’s impact on sports broadcasts, particularly those related to high-profile events like the European football championship. Similarly, Net Info group, which operates numerous popular websites in Bulgaria, underscored the potential hardships it would face without gambling-related revenues.

The Association of Bulgarian Broadcasters (ABRO) shared this opinion, cautioning against the ban’s implications for media sustainability, citing the importance of advertising revenue in supporting quality journalism. Meanwhile, the Technology Industry Alliance raised concerns about the ban’s feasibility in enforcing restrictions on internet platforms, citing potential conflicts with EU law.

As demonstrated in other European markets, advertising restrictions lead to an increase in unlicensed operators, consequently impairing the state’s ability to collect taxes from gambling activities and to provide adequate consumer protections.

Stilian Shishkov, Sportal Media Group CEO

As the debate over the proposed ban continues, affected parties are urging policymakers to consider the bill’s broader implications and either consider a substantial overhaul or cancel it. The outcome of the upcoming vote on the ban will likely shape the future landscape of gambling advertising regulation in Bulgaria, necessitating a careful and comprehensive approach.

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It has come to light that a significant number of Swedish influencers on the video platform Twitch have been endorsing unlicensed online casinos, sparking concerns about the promotion of illegal gambling activities.

Following a thorough investigation conducted by Kulturnyheterna, the investigative arm of Sveriges Television AB (SVT), it was uncovered that eight out of ten prominent Swedish influencers on Twitch have been actively promoting unlicensed casinos to their vast audiences.

Over a period of six weeks, Kulturnyheterna meticulously reviewed the broadcasts of these influencers, revealing how they have been disseminating advertisements for unlicensed online casinos through extended live streams, urging hundreds of thousands of followers to engage in gambling activities.

The investigation further highlighted that these influencers collectively reach an audience of approximately half a million subscribers, predominantly comprising young males born in the 1990s and 2000s.

During their live streams, 60% of these influencers employed direct marketing tactics, including sharing links to unlicensed casinos in their profiles and broadcasts, as well as enticing followers with bonus incentives to create casino accounts.

According to Kulturnyheterna’s report, these influencers were observed actively encouraging their viewers to gamble, participating in gambling activities alongside their audience, and even involving viewers in decisions regarding wagers, thereby intensifying engagement in gambling-related content.

Swedish Gambling Regulator Takes Aim at Twitch

Twitch, owned by Amazon, has faced scrutiny over its role in facilitating these advertising infringements. Despite implementing community guidelines in 2022 to prohibit the promotion of gambling content, Twitch has seemingly struggled to curb such activities effectively.

Kulturnyheterna has submitted its findings on these advertising violations to Spelinspektionen, Sweden’s gambling regulator, emphasizing Twitch’s status as the primary platform for promoting unlicensed casinos.

Spelinspektionen, armed with enhanced enforcement powers granted by amendments to the Gambling Act of 2018, has recently taken decisive action against illegal online gambling operators. Last week, Spelinspektionen announced the prohibition of a network of skin online gambling websites, which were primarily promoted on platforms like Twitch and YouTube.

While Spelinspektionen has yet to comment on Kulturnyheterna’s investigation, it has reiterated that advertising unlicensed gambling is illegal under Swedish law. Violators risk facing severe repercussions, including business bans and potential police intervention.

Similar action was also taken in Norway. Norway’s Gambling Authority declared a zero-tolerance stance towards social media platforms promoting online gambling content, enforcing a blackout on gambling advertising except for state-owned monopolies. The actions by the authority included warnings issued to Schpell.com and other entities.

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Brazil’s proposed ban on sports betting advertising doesn’t sit well with professional soccer clubs. Teams expressed their opposition to the measure by sending a letter to the Senate, hoping to convince it not to include the ban in the final version of Brazil’s sports betting bill.

Under the ban, which is envisioned as a part of Brazil’s sports wagering legislation, operators will be unable to advertise across stadiums or sign sponsorship deals with teams. However, clubs argue that the ban would deprive them of a major revenue stream and may have an overall negative impact on the sector.

The soccer clubs’ letter was sent on November 10 and signed by a total of 33 teams. The letter outlines the organizations’ concerns about the measure. The signatories include many big local clubs.

Gambling sponsorships provide major sporting organizations with important funding that helps them maintain and expand their operations.

Brazil Sports Betting Continues to Get Delayed

Brazil’s proposed ban is a part of the country’s sports betting bill. The ban was added as a proposed amendment and has been actively promoted by Senator Eduardo Girão who argues that advertising exposes people to harm. Other proponents of the ban also say that the measure will help Brazil tackle problem gambling and mitigate gambling-related crime.

The Senate is now responsible for deciding whether the ban proposal should be sent to the Chamber of Deputies. The discussions may very well lead to further delays to Brazil’s already long overdue sports betting legislation.

While the country is already on the path to legalizing wagering on sports, regulatory matters continue to stall the launch of a regulated market. While there were hints that progress is being made, the latest developments imply that it would be at least a few more months before Brazilians can wager legally.

Speaking of advertisements, in late October, Brazil published a comprehensive set of requirements for operators, which include the regulation of advertising near schools and universities. Operators are also prohibited from implying that gambling can lead to personal success or improved financial conditions. In addition, companies must promote responsible play.

In the meantime, gambling taxes remain another contentious subject. Earlier this year, the IBJR spoke out against the latest sports betting tax proposals.

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The probe of the Authority uncovered that Seven West Media’s Seven Network Operations Ltd (Seven) has failed to comply with the country’s gambling advertising regulations. 

Not the First Breach

On December 12, 2022, Seven aired a gambling ad outside the officially established times allowed during live sports broadcasts on its streaming service. The respective ad was shown at 10:38 am on the demand platform 7plus while an American Football game in the National Football League was airing. 

Gambling ads cannot be displayed to the public while sports events are streamed live between the hours of 5 am and 8:30 pm. This includes a five-minute timeframe both prior to and after the event. 

This failure to comply with the online gambling ad regulations followed the authority’s previous formal warning given to the same network two months prior to the December breach, in regards to a similar problem. 

The ACMA, for which the minimization of gambling harm still represents a compliance priority in 2023-2024, has issued a $13,320 penalty for Seven. This is the maximum amount that the independent Commonwealth statutory authority responsible for regulating communications and media services Down Under Australia is allowed to apply for such breaches. 

Australians, “Extremely Concerned” About High Exposure to Ads

ACMA’s chair, Nerida O’Loughlin, expressed Australians’ concerns regarding the high “level of exposure to gambling advertising” in live sports coverage via all types of platforms and broadcasters. O’Loughlin further explained that the ACMA would like to see broadcasters make use of “robust systems and processes and associated assurance mechanisms” that would help them better comply with the current regulations.

In connection to the Seven breach, the ACMA explained that they were reassured that the streaming of the respective gambling ad in December “was an isolated event” and that the media company already has a series of ”adequate” mitigation measures in place meant to prevent similar incidents. 

These measures include additional training and oversight, among others. The ACMA has also been informed by Seven that the said measures can successfully and effectively “ensure future compliance,” adding that they do not need to implement any other measures. 

O’Loughlin, however, commented that in the context of the repeated breaches made by Seven, they will continue to keep a close eye on the way they comply with the rules to ensure what they are saying is valid. 

In mid-October, the ACMA published its Gambling Advertising in Australia: Placement and Spending report that showcased the persistence of gambling advertisements between May 2022 and April 2023.

According to the report, more than one million gambling ads were aired on free-to-air TV and metro radio.

Earlier this week, we spoke about SBS, another popular broadcasting network in Australia, and its revolutionary On-Demand TV app feature that will allow viewers to opt out of receiving certain ads starting next year. 

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The Kansspelautoriteit (KSA), the Netherlands’ gambling regulator, published an update on the market’s newly introduced ban on untargeted advertising. According to the authority, it has had to intervene on three occasions, forcing operators to shut down ads that violated the new advertising rules.

For reference, the ban on untargeted ads came into effect on July 1, aligning with the Netherlands’ efforts to reduce problem gambling. In the near future, the Dutch market is also set to prohibit sponsorships for TV programs and events, as well as sponsorships in professional sports.

It seems that getting used to the ban will take a while, despite the KSA’s warnings. Because of that, the regulator has had to intervene on three occasions and address problematic ads. According to the authority, the licensees in question pulled the ads down upon receiving the heads-up.

Three Companies Violated the Dutch Regulations on Advertising

The KSA reported that one of the three violators had run a promotion allowing participants to win a special t-shirt with the company logo. However, merchandise handouts are considered to constitute untargeted advertising because they would promote the company’s products in public spaces. As a result, the operator in question had to cancel the promotion.

The two other violations included operators that violated the existing rules on sponsorships. The KSA pointed out that TV and radio and sports sponsorships are still permitted but added that there are still rules that companies should follow.

For example, operators can use neutral statements to help consumers recognize their brands and logos. However, they cannot go further and, for example, promote via slogans and incentives. One of the two operators, the regulator said, included its slogan in a program sponsorship, breaching the requirement for neutral expression. The second company, meanwhile, encouraged sports matchgoers to download the gambling company’s application, also violating the same rule.

Other Recent Developments in the Netherlands

In other news, the recently published 2022 KSA Market Scan provided insights into the trends in the Dutch gaming market. The document highlighted the need for updated responsible gambling practices that are in line with the shifting market. The data also showed that a third of the total gambling revenue came from online operations.

Meanwhile, René Jansen, KSA’s chair, confirmed his resignation. While his term is set to expire on October 1, 2024, Jansen will likely vacate the position on July 1, 2024. The authority is already looking for a suitable successor.

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The regulator in charge of advertising in the United Kingdom, the Advertising Standards Authority (ASA), constantly monitors such activities and imposes actions against companies that breach the established advertising regulations. As the regulator, the Authority scrutinizes different sectors, including the gambling and betting vertical. On Wednesday, the ASA announced that it upheld an assessment against a promotional Tweet released for Sky Bet. Posted on February 9, 2023, the Tweet included a video clip that was a part of The Overlap, a podcast that involves some of the biggest names in soccer, business, politics and the sports sector.

The aforementioned promotional Tweet included a video of Gary Neville that predicts which team may win the Premier League. The promotional video displays the BeGambleAware logo along with text Brought to you by Sky Bet and a caption “Is Gary changing his title prediction? Thanks to Man City, It seems @GNev2 is having a change of heart. Part three of The Overlap Fan Debate is out now.”

After observing the post, the ASA questioned whether the ad featured an individual that is likely to appeal to people under 18 years of age. Under the current regulations, gambling advertisements cannot include personas that may appeal strongly to individuals under the age of 18. The Authority sought to determine if Neville, who is a famous pundit for Sky and ITV, and also has a rich history in soccer after being a part of the Premier League club, Manchester United, may appeal to those under the age of 18.

Sky Bet Explains Why Gary Neville Doesn’t Appeal to Individuals under the Age of 18

The ASA addressed their issue with Sky Bet, to which the company responded that while Neville is well-known in soccer, he retired more than a decade ago, in 2011. Moreover, Sky Bet said that The Overlap podcast focuses on soccer but also includes discussions and interviews within the political, sporting and business sectors. It added that the podcast is “distinctly adult in tone” and doesn’t offer any content that may appeal to children.

Citing data, Sky Bet confirmed that as of March this year, Neville had some 5.5 million followers on X, the platform formerly known as Twitter. According to the company, an estimated 1% of those followers were between the ages of 13 and 17. In contrast, Sky Bet said that some 53% of his followers are between the ages of 25 to 34. “Gary Neville was 47 years old at the time the ad appeared, and that his media profile was consistent with his mature age,” the company explained.

Advertising Watchdog Upholds Complaint

Despite the facts drawn by Sky Bet, the ASA upheld its complaint regarding the promotional message. According to the Authority, the 1% of Neville’s followers on X represent some 55,000 individuals under the age of 18. Additionally, the ASA said that in total, across other social media channels, an estimated 135,000 followers of the famous businessman and sports pundit are under the age of 18. 

Citing the BCAP, the Authority explained that “a generally high social media following that attracts a significant absolute number of under 18 followers, as determined through quantitative or qualitative analysis, is likely to be considered an indicator of ‘strong’ appeal.” Although that number was a small portion of Neville’s followers, the ASA said that it represents “a significant number in absolute terms.” It concluded that the ad was in breach of the CAP Code and explained that it must not appear again in its current form.

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Polish-facing sports betting brand STS has secured an advertising rights arrangement with the Union of European Football Associations (UEFA). Now owned by Entain, the operator has secured the right to conduct marketing activities for the UEFA Europa League and the UEFA Europa Conference League in Poland.

This will expand the sports sector presence of Entain, which already partners with the two leagues in question. With Entain having acquired STS, the Polish brand will also be able to conduct UEFA-oriented campaigns.

Now activated by STS in Poland, the rights will allow the Polish operator to appeal to soccer fans across Europe. The operator’s logo will be visible during matches of Polish teams, promoting its wagering products.

At the same time, STS promised to launch a variety of local promotions for sports fans in the country. Lucky fans will even be able to win tickets for some of the hottest European soccer matches.

As the largest private operator in Poland, STS is firmly committed to supporting the sports sector. Already boasting partnerships with many clubs across multiple sports, the operator is also the official sponsor of Poland’s national soccer team.

Entain’s Takeover Continues to Benefit STS

STS’ chief marketing officer, Paweł Rabantek, commented on the activation of the advertising rights. According to him, the recent takeover by Entain brings a “number of benefits” for his team, including the opportunity to expand STS’ marketing activities and reinforce its position in Poland’s gambling market.

Rabantek also expressed his happiness about the implementation of all possible advertising services both within the UEFA Europa League and UEFA Europa Conference League competitions from the first match day.

Rabantek teased that fans can expect many exciting promotions.

STS Dominates the Polish Market

STS was acquired by Entain in June for approximately $945 million. Approved by STS’ two major shareholders, Mateusz Juroszek and Zbigniew Juroszek, the deal saw STS join the global Entain family.

Currently boasting around 800,000 active users and a network of 400+ physical betting shops, STS is an undisputed leader in the Polish gaming industry.

Two weeks ago, the gambling and betting company published its results for the first half of the year, strengthening its leadership position and maintaining its momentum. The company’s metrics increased across the board, attesting to the effectiveness of STS’ strategy.

In other news, PandaScore just debuted in Poland thanks to a partnership with the local betting leader. Under the deal, the former company supplied its cutting-edge esports betting products to STS. 

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The renowned betting and gaming brand with a strong presence within the gambling sector in the UK and Ireland, QuinnBet, announced a new multi-year agreement. Details regarding the latest collaboration emerged Thursday and saw the company become an official partner of the Northampton Town Football Club, the professional association soccer club competing for the EFL League One, based in Northampton, England.

Thanks to the new collaboration, QuinnBet will benefit from brand exposure via boards placed on the northeast and southeast corners of the Sixfields stadium. Moreover, the operator will benefit from exposure via boards placed in the TV arc at the stadium, helping increase brand awareness even further.

The collaboration with Northampton marks an important milestone for QuinnBet as it complements its ongoing growth. The company initially launched its services nearly a decade ago, back in August 2017. Since then, QuinnBet has been rapidly growing within the regulated gambling sector in Ireland, as well as the UK.

The company is currently licensed and regulated by the Government of Gibraltar, as well as the Gibraltar Gambling Commissioner. Moreover, as noted, it has established its presence in Great Britain via licensing from the Gambling Commission. In Ireland, QuinnBet has established its operations under the Betting Amendment Act 2015.

Constantly growing its operations, QuinnBet remains dedicated to delivering unique gambling experiences for its customer base. The company offers an online casino platform as well as a sportsbook that are available for desktop and mobile devices. Now, thanks to the multi-year deal with Northampton, QuinnBet is expected to grow further its presence in the UK and Ireland, reaching new customers.

The Deal Brings Excitement to QuinnBet, Northampton

Niall McPartland, QuinnBet’s head of commercial and sponsorships, revealed that the company is excited to sign this new advertising collaboration with the famous soccer team. He spoke about the club’s extensive history in soccer, highlighting iconic wins for the team. “Like the Cobblers, QuinnBet operates in an industry dominated by large competitors, but that doesn’t detract from our ambitions to strive for the top,” added McPartland.

“We are delighted to commence this 3-year advertising partnership with Northampton Town FC, it has been a pleasure working with their commercial team.“

Niall McPartland, head of commercial and sponsorship at QuinnBet

The company’s head of commercial and sponsorship added that QuinnBet remains dedicated to improving its casino and sports betting offering and delivering unrivaled experiences. At the same time, McPartland said that the operator adheres to responsible gambling. Finally, he said: “Football is hugely popular with QuinnBet customers, and we are proud to support the game and clubs like Northampton Town FC through our sponsorships. We wish everyone at the club every success for the season ahead and beyond.”

Caroline Lucy, Northampton’s commercial director, shared the excitement of McPartland. She said that the club is delighted to add QuinnBet to its growing list of partners. Finally, Lucy predicted that the collaboration would bring success to the duo.

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The UK minister for sport, gambling, and civil society, Stuart Andrew, defended the decision, citing “little evidence” to suggest that advertising directly led to harm among users.

Expert Challenges Government’s Stance on Gambling Advertisements and Harm

Minister Andrew stated that they had heavily relied on the available evidence and pointed out that there was limited proof suggesting that exposure to advertising alone led individuals to be affected by gambling harm. He also mentioned that if further research provided additional evidence indicating that advertising was causing harm, it would be considered for action, reported The Guardian.

However, this assessment has been fiercely disputed by gambling harm expert Dr. Matt Gaskell, who runs the NHS’s northern gambling service. Dr. Gaskell argued that the evidence clearly indicated that gambling advertising stimulated consumption, resulting in an increase in harm. 

Gaskell expressed concern that children, young people, and individuals already experiencing harm or in recovery were continuously subjected to pervasive gambling advertising, and he criticized the government for choosing to expose them to such harm.

A comprehensive review of research into gambling advertising, published in the journal Public Health in February, recommended advertising restrictions. While researchers acknowledged limitations in the evidence base, they found “substantial and consistent evidence” supporting the need for restrictions to reduce exposure to gambling advertising.

Additionally, a study conducted by the University of Sheffield has found that exposure to gambling advertisements is linked to increased participation in gambling and a higher risk of developing gambling-related harm, particularly among vulnerable individuals. 

Stuart Andrew Envisions Evolving Regulations and Enhancing Research

The UK government’s decision appears to have been influenced by the interests of broadcasters that generate substantial revenues from gambling advertising. Stuart Andrew acknowledged that this was a challenging debate, but he pointed to plans to limit direct marketing to gambling customers and the voluntary ban on front-of-shirt sponsorship by the Premier League as signs of progress.

One significant factor impacting the quality of research in this area is a lack of funding, particularly outside of industry-funded sources like Gamble Aware. The government intends to change this funding model with the proposed statutory levy on bookmakers, which would ringfence revenues for government-authorized research.

Stuart Andrew affirmed that a new regulatory framework would be in place by the previously proposed date of summer 2024. He emphasized the significance of conducting improved research to gain a better understanding of gambling-related harms, expressing the desire to obtain more comprehensive research and evidence. He further mentioned that if research indicated a necessity for additional work in a specific area, they would be willing to undertake such efforts.

As the UK Gambling Commission and DCMS conduct consultations on the Gambling Act review White Paper’s proposals, the need for balanced and proportionate regulation that considers both customer experience and industry health remains a top priority.

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Liquor & Gaming NSW (L&GNSW) maintains its steadfast commitment to curbing illegal gambling advertising, dishing out fines exceeding $1.1 million to online bookmakers since 2016. The regulator’s actions highlight its ceaseless vigilance and commitment to protecting player interests. L&GNSW’s constant updates allow it to stay ahead of industry innovations and curb problem practices.

Violators Face Harsh Punishments

L&GNSW has adopted a rigorous stance against unlawful gambling promotions, issuing hefty fines to deter violators and uphold the industry’s integrity. The companies facing prosecution in court have collectively faced fines surpassing $830,000. Additionally, L&GNSW has leveraged its authority to impose penalty infringement notices amounting to $270,000.

The regulator’s zero-tolerance approach is paying significant dividends, making New South Wales one of Australia’s leading gambling jurisdictions. Jane Lin, L&GNSW Executive Director Regulatory Operations, noted that sufficient information and regular collaboration with operators meant they had no excuse for violating advertising rules. 

We will continue to monitor television, print, and social media for this illegal advertising and advocate for the courts to issue higher penalties.

Jane Lin, L&GNSW Executive Director Regulatory Operations

According to current NSW laws, courts can impose penalties of up to $110,000, while penalty notices carry a $15,000 fine. Regulations strictly prohibit advertisements that induce people to participate in gambling, severely limiting operators’ marketing options. Despite these restrictions, the region’s gambling market remains healthy and competitive, highlighting the regulator’s success.

The Regulator Remains One Step Ahead

L&GNSW has demonstrated a willingness to pursue even high-profile operators. April saw the regulator fine Miami-based micro-betting operator Betr AUD210,000 ($142,365) for breaching advertising laws in a controversial promotion. Consistent enforcement actions and significant fines mean companies are always held accountable, protecting consumers from deceptive or harmful advertising practices.

Regular reforms mean the NSW regulator remains in touch with the latest developments in the gambling industry, enabling it to adapt to emerging challenges. The authority has set its sights on introducing Cashless Gaming in the region. This measure will transform the NSW market, curbing problem gambling and holding operators closely accountable for any regulatory failings.

The evolving regulatory landscape and diversifying gambling practices make maintaining a robust and proactive enforcement approach paramount. L&GNSW’s dedication to eradicating illegal gambling advertising testifies to its critical role in fostering a responsible and transparent gambling environment. Through these efforts, L&GNSW aims to create a safer and more enjoyable gambling experience for all participants.

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