Within a year of legalizing online gambling in Canada, a surge in public complaints about the volume and content of gambling advertisements has raised concerns. A new study released by the Canadian Gaming Association (CGA) highlights that regulators may be acting more quickly than the available evidence supports. This could result in policies that don’t adequately address the nuances of gambling advertising and may be overly broad or miss key issues.

The CGA published an academic and policy-focused study, warning that the development of gambling regulations is outpacing the research needed to effectively guide these policies. The study, conducted by GP Consulting with contributions from specialists at Eilers & Krejcik and academics from the International Gaming Institute and Washington State University, examines the current state of advertising for online gambling and sports betting.

Regulations Outpacing Research

The study’s central premise is that the evolving regulatory framework for gambling advertising in Canada is advancing faster than the research base supporting it. This, the report warns, could result in insufficiently tailored rules that fail to fully address the complex issues inherent in gambling promotion. The research team conducted a “rapid review” of 41 academic studies related to online gambling advertising and responsible gambling programs. This review is meant to serve as a resource for regulators and stakeholders as they navigate the fast-paced changes in the industry.

Ontario Leading the Charge

Ontario became the first province in Canada to launch a regulated online gambling market in April 2022, and now other provinces, such as Alberta, are expected to follow suit. Ontario’s Alcohol and Gaming Commission (AGCO) has already revised its rules on gambling advertising multiple times. Notably, a ban on the use of celebrities and athletes in gambling advertisements came into effect in February 2024, and Canada’s parliament is currently considering stricter regulations regarding when gambling ads can air on television.

The research recommends that Canadian policymakers pursue more in-depth studies in several key areas, including responsible gambling advertising, consistent measurement of exposure to ads, and the effects on vulnerable populations. The study also stresses the importance of avoiding one-size-fits-all approaches, noting that gambling advertising research from other countries, such as the United States or Australia, may not directly apply to Canada’s unique market.

Key Themes for Responsible Advertising

The authors identified five essential themes that they believe are necessary for ensuring that gambling advertising is both effective and safe:

1. Responsible Messaging: Advertisements should avoid making false promises or encouraging excessive gambling. The study suggests that campaigns should focus on promoting responsible play rather than depicting gambling as a way to easily win big.
2. Avoiding Vulnerable Audiences: Ads targeting youth or other vulnerable groups should be strictly limited. Regulations in Ontario already reflect this, with the ban on using celebrities or athletes in promotional materials.
3. Promotion Restrictions: The report suggests restricting the use of enticing terms like “risk-free” in promotional content, with such offers limited only to consumers who have opted into receiving marketing communications.
4. Affiliate Accountability: Gambling operators should be held responsible for the actions of their affiliates, ensuring that all marketing practices adhere to regulatory guidelines.
5. Direct Marketing Controls: Gambling operators should limit direct marketing to individuals who have explicitly consented to receive such communications.

The study places these themes within the broader context of regulatory frameworks in other jurisdictions, such as the United Kingdom, Ontario, Denmark, Michigan, and New Jersey. The UK is considered to have the strictest rules, with Ontario following closely behind and Denmark, Michigan, and New Jersey rounding out the list.

Ongoing Debate and Need for Caution

The CGA’s research arrives at a critical time in the Canadian gambling landscape, as debates continue about how best to regulate gambling advertising. Although Bill S-269, which calls for a national framework for sports betting advertising, is currently stalled in federal parliament, the issue remains at the forefront of industry and government discussions. The report highlights the risk that regulations may be shaped more by public opinion and social pressures than by solid empirical evidence.

The research team emphasized that policymakers need to strike a balance between regulating gambling ads and ensuring that rules are grounded in fact-based evidence. “The approach to regulation in Ontario was shaped in part by the necessity to integrate grey market operators into a regulated framework,” the researchers noted, suggesting that regulatory bodies should remain flexible as the market continues to evolve.

Future Research Priorities

The study also lays out a research agenda for further investigation into several areas, including how to better measure the impact of gambling ads on consumer behavior, how cultural factors influence advertising effectiveness, and the challenges of conducting research in real-world settings. The authors call for more targeted studies that can inform future regulations with greater precision.

Source:

“CGA research: gambling ad regulation misaligned with evidence“, canadiangamingbusiness.com, September 20, 2024.

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