An investigation by the New Zealand Herald highlighted the rising issue of online gambling activities during school hours. The country’s outdated regulation offers little protection from gambling harm, leaving its most vulnerable groups at risk. Experts warn that exposure to gambling from an early age can have significant repercussions later in life, urging the government to step in.

Insufficient Protections Pose Significant Risks

New Zealand’s Problem Gambling Foundation voiced explicit concerns, stating that the surge in high school students involved in online gambling is worrying. One former Auckland student shared his experience, noting that he signed up with an online operator during the COVID-19 lockdown and continued throughout his Year 13 at school, developing a severe gambling addiction.

AUT Gambling and Addictions Research Centre Associate Professor Maria Bellringer noted that problem gambling among students was increasingly frequent. She added that young people were digitally savvy and could easily bypass existing restrictions, including pretending to be their parents and using their credit cards. Bellringer noted that New Zealand had not officially researched the matter but highlighted growing anecdotal evidence.

Parents have been reaching out to treatment services, worried about their child’s gaming addictions.

Maria Bellringer, AUT Gambling and Addictions Research Centre Associate Professor

Many of New Zealand’s youth encountered gambling via adjacent activities like wagering money on popular video game “skin” betting websites, later steering towards real-money gambling. Another victim of underage gambling shared that the rising addiction eventually led to frequent pub visits to engage in pokies as he regularly wagered significant amounts.

Effective Measures Require Significant Legislative Reforms

New Zealand currently lacks specific laws to prohibit citizens from accessing offshore online gambling sites, leaving Kiwis without local legal protection while gambling with such operators. The introduction of phone bans in several New Zealand secondary schools has caused heated debates, with several institutions imposing strict restrictions on phone usage during school hours.

Despite these limited efforts, students continue to find ways to access online gambling platforms, normalizing and exposing their peers to these activities. Experts urged the New Zealand government to consider the seriousness of the matter and take preventative measures, such as loot box bans similar to those planned in Australia.

A 2020 survey revealed that just under half of youths aged 16-24 had gambled, with over 9000 people considered moderate and high-risk gamblers. Mounting evidence raises red flags regarding the potential risks and long-term impact on these individuals, placing significant pressure on the New Zealand government to consider its long-overdue gambling reform.

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The Massachusetts Gaming Commission (MGC) announced that it has sanctioned MGM Springfield with a $45,000 fine for multiple incidents that led to the casino allowing access to the gaming floor and gaming to persons under the age of 21.

Financial Penalty Accepted

The financial penalty was imposed after the Investigations and Enforcement Bureau (IEB) of the regulatory body assessed the violations, the MGC stated in its press release, outlining that MGM Springfield agreed to pay the civil administrative penalty as a result of the violations.

Commenting on the development, IEB’s senior enforcement counsel, Kathleen Kramer, expressed appreciation that the casino self-reported many of the instances and then collaborated for the implementation of prevention measures.

“We appreciate that MGM Springfield self-reported many of these instances and their ongoing cooperation to put enhanced practices into place to prevent similar incidents in the future,” Kramer said, stressing that “the IEB will continue to monitor MGM Springfield’s compliance with the gaming laws and regulations and the remedial steps they have undertaken” going forward.

MGM Springfield was penalized for multiple incidents which occurred between June and December last year. The incidents led to underage persons being able to access the casino’s gaming floor and even gamble.

Many of the incidents MGM Springfield self-reported to the state’s regulator and then showed full cooperation with its enforcement bureau. Going forward, the casino put in place a number of remedial steps to prevent similar occurrences.

The measures implemented by the casino include delivering enhanced training for its staff, installing additional railings to separate the gaming floor, as well as plans to install an additional security podium for the gaming area.

The gaming regime in Massachusetts considers the protection of underage individuals within the casino environment among its highest priorities and, following the multiple incidents, the IEB decided to impose the penalty.

Other MGM Springfield Violations

In April, the MGC said it would consider action against MGM Springfield after the casino was found to have accepted two illegal bets placed on collegiate sports in February. The bets were placed on basketball games involving Harvard University but smaller in-state collegiate events are illegal to bet in the Bay State.

At that time, MGM Springfield claimed that the wagers were accepted by mistake and that the casino was unaware of them, and provided the MGC with the exact dates the wagers had been accepted. Both wagers were accepted as a result of the university being marked incorrectly as an out-of-state institution.

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The UK Advertising Standards Authority (ASA) discovered a Kwiff ad right next to an article on the Portsmouth FC website, urging young people to join the Junior Blues. The operator denied the accusations, noting that its online marketing software specifically avoided targeting minors. However, The ASA refused to change its decision, stating the circumstances surrounding the incident were sufficient cause for a sanction.

Marketing Mishaps Seem Increasingly Common

The ASA’s decision is part of its ongoing efforts to ensure responsible gambling practices and protect vulnerable individuals, particularly minors, from potential harm. The UK advertising regulator has been increasingly more vigilant regarding gambling operators following the Department for Digital, Culture, Media, and Sport (DCMS)’s drive to evaluate the severity of the country’s gambling-related issues.

Online marketing, in particular, occupies much of the authority’s attention as policing the vast online landscape requires significant resources. Just mere days ago, the ASA received word of high-profile operator Coral allegedly targeted blogs frequented by new mothers. Even though companies try to avoid such cases, this case and the most recent Kwiff violation prove the need for effective regulation.

The Regulator Stood Firm in Its Decision

According to the ASA’s findings, a Kwiff ad had appeared next to an article titled “Join the Junior Blues,” informing youth how to join Portsmouth FC’s junior supporter groups. The regulator argued that, knowingly or not, the marketing content’s placement directed it at individuals under 18. The presence of Portsmouth FC’s cartoon mascot in the article further exacerbated the issue, contrasting the nearby gambling ad.

The Kwiff brand is the property of Eaton Gate Gaming, a UK-based gaming start-up. Company representatives disputed the ASA sanctions, denying targeting underage individuals. The business highlighted its automated behavioral targeting tool, noting it was precise enough to maximize ad revenue while limiting exposure to underage individuals. 

Eaton Gate claimed they strictly abided by the ASA guidelines and had implemented sufficient safeguards to minimize such cases. However, the regulator remained unconvinced, noting that, intentionally or not, the ad was visible next to content specifically aimed at minors. The ASA argued that the unfortunate placement was sufficient to warrant a response and did not withdraw their sanction.

Because the ad appeared in the context of a web page… directed at those younger than 18 years, it did not comply with the rules on gambling advertising.

UK Advertising Standards Authority statement

The ASA’s decision to sanction Kwiff sends a powerful message to the gambling industry about the importance of adhering to responsible marketing practices. It serves as a reminder that operators must remain vigilant in preventing underage individuals from accessing or engaging with gambling content and carefully monitor their campaigns for possible violations.

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