When Fulham FC announced the signing of a ‘record-setting deal’ with W88, a bookmaker based in the Philippines, the fans were outraged. This came before a scheduled Parliament vote on whether or not to ban gambling sponsors in the Premier League.
The wider public welcomed such a move, but it only revealed the frequency of online and offline gambling ads.
The debate is far from British, as the US is also facing the same issue. For this reason, the team of Nostrabet decided to look into the complexities of gambling and whether or not they’ve become too invasive and problematic.
Grassroots Resistance
A 2021 Fulham Supporters’ Trust survey revealed that 22% of fans stopped purchasing new kits due to gambling sponsors being present on them. In addition, 46% of fans are uncomfortable with Fulham having a gambling sponsor, while 47% favour outright removing gambling sponsorships from football.
And this isn’t just fans of this West London club. For instance, the 2018-2019 season featured 18/20 Premier League teams with at least some gambling sponsor. The 2022/2023 season will see 9/20 have a betting company/casino as the main shirt sponsor. Outrage has come from all supporters’ groups.
The time is even more precarious due to the issue of cryptocurrencies looming over both the Prem and the authorities. In a time where many coins and exchanges turn out to be scams or worthless, 19/20 teams have a crypto sponsor/partner.
Much of this sentiment results from the UK Government taking a hard stance by strictly regulating gambling and its advertising. The Gambling Act of 2005 outlined that all advertising needs to be “socially responsible” and in line with the licensing objectives. And by all accounts, the tight hold seems to be paying off. According to a 2021 survey by the UK Government, only 0.5% of adults fulfil the criteria for problem gambling.
This is a somewhat reassuring fact, but more and more NGOs and youth groups have pointed out that gambling companies are finding new ways of attracting new players. The main one is through content on social media.
Posing as Your Friends
Irish bookmaker Paddy Power is one of the most well-known brands in the UK and globally. And it’s not because they offer something dramatically different from their competitors. Instead, they’ve embedded themselves into people’s lives through social media posting and content.
Their YouTube channel is a particular hit, with multiple videos exceeding 4 million views. There, they make references to popular internet memes, teams’ successes and interview stars like Wayne Rooney or Eric Cantona.
Paddy Power can hit multiple birds with one stone with such a strategy. Using influencers, knowledge of things close to people’s hearts, humour and clever editing, they don’t even have to mention sports betting. There’s a little logo in the corner, so you know it’s them.
Aside from subliminal tricks like this, the best gambling ads are user-generated ones. You’ve probably seen people post images and videos of big wins on social media. And the gambling company is more than happy to repost such a thing. They didn’t pay a cent for that ad, and several new users will likely offset the payout to that player. If they didn’t spend it already, that is.
A Worthwhile Investment, So Far
According to a Nielsen report, the US market’s expenditure on TV ads for gambling services has jumped 141% from 2020 to 2021. Due to the country’s decentralized structure, there has been much discussion about the legal status of gambling in each state.
With the Supreme Court ruling to repeal the federal sports betting ban, more and more states have legalized the activity. Some have followed suit by including online casinos. While the growth may seem slow and natural, two issues emerge:
- They have no experience. It’s highly likely that states with no regulatory experience will make mistakes when deciding which ads are legal and which aren’t. Also, many probably won’t consider drafting bills to combat excessive gambling advertising.
- The market is too small. Many states have given licenses to 1-5 brands, giving them an unfair advantage over sites and establishments that’ll come later. It’s likely that their increased presence will lead to higher customer retention rates, which might be a precursor for problem gambling in the future.
What’s clear is that the battle between regulators and brands is fierce. Enormous amounts of money are being poured in, and gambling sites seek to be as relatable as possible.
Conclusion
Even though regulators and law enforcement agencies have stepped up recently, gambling companies are still several steps ahead. Despite restrictions on targeting minors and problem gamblers, brands expose their intentions on social media through user-generated content, videos and other ways of obfuscating the fact that they’re merely a bookmaker.
Gambling companies and governments must work together to solve the issue and curb reckless advertising. And the issue is a global one, too. Offshore casinos and betting sites make it hard for one regulator to catch all the wrongdoers.
