The topic of gambling advertising is a controversial one, raising many ethical questions around honesty and transparency, as well as potential impact on vulnerable groups such as problem gamblers and youths.
In this report, we look into the mechanism of gambling advertising and how it may affect both ordinary consumers and those at higher risk. We will also look at the volume, cost and efficiency of advertising, as well as some of the messaging that can be found in such ads.
The scope of advertising referred to here includes only conventional media such as radio and television, online and print media, and similar. Not included is the impact of how gambling is portrayed in popular culture such as movies. Also omitted are more novel channels of advertising via social media, ‘viral’ marketing and so on.
Advertising, attitudes, and responsible gambling
Attitudes to both gambling and advertising itself tend to be quite polarised, and so when gambling companies produce promotional materials, the reception is often mixed. As gambling advertising increases, so does the demand to ban such marketing.
In the past, gambling establishments and casinos in the UK and other parts of Europe put much less focus on promoting their services. With the introduction of online casinos, and the general commercialisation and globalization of the sector, competition has increased. A concurrent increase in marketing was inevitable. The internet in particular is a less regulated medium, and allows for cross-border advertising in ways that other media do not.
The concept of responsible gambling is now embedded in most casino providers, and being seen to comply with such conditions is necessary for the long-term survival of the company. Balancing advertising with responsible gambling requirements becomes one of the biggest challenges for gambling providers.
On the one hand, adult participation in gambling is relatively high in developed nations, suggesting that on the whole it can be seen as a benign form of entertainment. In this case, advertising is simply a way to inform customers about new products that they may enjoy.
Gambling advertising becomes problematic when it presents potentially deceitful information, and when it has a negative influence on problem gamblers. In order to be responsible, companies need to be aware of what constitutes potentially harmful or inappropriate gambling advertising, and low-risk or harmless promotional content.
Possible mechanisms for the effect of advertising on problem gamblers
If an individual participates in high levels of gambling, it doesn’t necessarily follow that they are a problem gambler. Many gamblers have the time and funds to support their pastime without it having a negative impact on their lives. Furthermore, different types of gambling can be more or less detrimental, and so distinctions should be made.
However, there are several possible mechanisms by which gambling advertising may exacerbate problem gambling. These include: encouraging a shift from non-problem gambling to something more problematic; enticing players to engage with a new and specific type of gambling that quickly develops into a problem; encouraging youths to start gambling early, which leads to problems later; and exacerbating existing problematic gambling behaviours while impairing efforts to rectify such issues.
Another overall mechanism is more general and societal – the long-term normalisation of gambling as an acceptable leisure activity with positive associations to fun, affluence and glamour.
Despite all these possible mechanisms, however, the evidence strongly suggests that the true impact of gambling advertising on problem gambling is actually relatively small. During the period that has seen the greatest increase in casino and gambling marketing, there has been no reported increase in the levels of problem gambling – rather there was a relative decrease. Additionally, forms of gambling that tend to attract the most problematic behaviours, such as fixed odds betting terminals, tend to be those that have the least advertising.
Volume and efficiency of gambling advertising
There is clear evidence for a large increase in the volume of gambling advertising in the years since the market was liberalised. In the UK, television advertising rose sharply and is now in the millions of individual spots per year. Certain types of advertising also increased, for example online bingo saw a ten-fold increase in UK advertising between 2005 and 2012, indicating a major push for this sector.
Assessing the efficiency of such advertising is more of a challenge, since most private companies protect this information. Studies carried out on lotteries suggest that the jackpot, rather than any advertising, is the most important factor in participation. As it stands, the majority of gambling advertising focuses on individual brands attempting to establish themselves in a highly competitive market.
Certain studies conducted with young participants suggests that internet advertising, while cheaper than other media, may have a very low impact. The youths surveyed noticed only around 10% of the adverts displayed, and their later recall of those they had noticed was low.
Messaging in gambling advertising
Many studies have been done concerning the tone and message found in gambling advertisements. Overall, the results show that such advertising frames gambling as a fun and social activity, as well as making associations with luxury. Sports betting and poker advertising emphasise the element of skill and competition. Lottery advertising uses language that suggests winning to be more likely than it is in reality.
Together with the use of bright colours, humour and celebrity endorsements, gambling advertising looks much like any other type of promotional marketing. Studies suggest that consumers view most advertising with scepticism, and this again also applied to gambling.
Gambling advertising usually prohibits suggestions that skill is more significant than chance. It has also been found that focus on jackpots and potential winnings should be avoided; concentrating on the entertainment element has been shown to have a less detrimental effect on problem gamblers.