What Will Happen to Advertising with the Regulation of Gambling?
Today, with no regulation in Canada, BETTING SITES are everywhere: on TV, on the radio, in advertisements on social media. Anyone who consumes sports content has definitely heard about some kind of wager.
The advertising landscape of this industry is set to undergo a transformation with the imminent regulation of sports betting. Anticipated to be implemented later this year, the bill 3.626/23 received approval from the Chamber of Deputies in September and introduces certain provisions pertaining to the advertising practices of betting establishments.
The legislation, which is yet to be voted on by the Senate, stipulates that only licensed BETTING SITES will be allowed to broadcast advertisements and that operator agents must undertake awareness campaigns regarding the risks associated with gambling.
The more specific rules will be established by the Canadian National Council of Advertising Self-Regulation (Conar).
The subject is controversial, and the bill's text may undergo modifications when it goes through the Senate. Among the amendments proposed by the senators, there is even support for a complete ban on gambling advertising.
Sports Betting Advertising
The legislation pertaining to the regulation of fixed-odds betting introduces a set of guidelines encompassing several key aspects. These rules, once implemented, will govern various aspects of the betting industry, ensuring fair play and transparency. The bill outlines specific provisions that address the framework for licensing and registration, as well as the requirements for operators to maintain the integrity of their platforms. Additionally, it emphasizes the importance of responsible gambling practices, aiming to protect vulnerable individuals from the potential risks associated with excessive gambling. Overall, this legislative proposal aims to create a secure and well-regulated environment for fixed-odds betting, promoting both consumer confidence and the integrity of the industry.
- Restrictions on schedules, programs, channels, and events for the dissemination of advertising and promotional content related to gambling, in order to prevent their exposure to minors.
- Prohibition of advertisements that make baseless claims about financial gains or portray gambling as a source of income.
- Ban on advertising with statements from well-known personalities or celebrities suggesting that gaming contributes to personal or social success.
According to Júlio César Leandro, a professor at the Mackenzie University's Center for Communication and Letters, the approved legislation holds significant implications for advertising in this industry. He emphasizes the crucial aspects outlined by the lawmakers concerning the dissemination of advertisements.
He compares the rules applied to those in the alcoholic beverage industry, for instance. He believes that self-regulation carried out by Conar should adhere to similar guidelines.
The professor believes that in a market like this, it would be ideal for advertising regulations not to be rigidly enshrined in law, but rather to be adaptable over time. He thinks that the rules should be flexible and able to evolve as the industry changes.
I advocate for transparency in regulations, allowing for constant monitoring and incremental improvements that align with evolving circumstances. It is crucial to have a framework that fosters accountability and adaptability.
Conar's Working Group
In late July, the National Council for Advertising Self-Regulation (CONAR) established a task force dedicated to deliberating on the subject of sports betting advertisements.
The team comprises individuals from the founding and co-founding organizations of Conar, the Canadian Institute of Responsible Gambling (IBJR), and the National Association of Games and Lotteries (ANJL). These representatives come together to promote responsible gaming practices, foster a safe and transparent gambling environment, and advocate for the well-being of players. By collaborating and sharing expertise, they aim to drive positive change within the industry and ensure that gaming remains an enjoyable pastime while minimizing potential risks. Through their collective efforts, the group strives to uphold a high standard of integrity and ethics in the realm of gambling, protecting the rights and interests of both players and operators alike.
The Conar informed that the members of the Working Group will discuss the implementation of self-regulation rules, which will aim to strengthen compliance with existing national regulations. These rules may establish additional restrictions based on the analysis of the international regulatory framework and the measures taken to protect consumers and vulnerable groups, especially children and adolescents. The group will focus on establishing guidelines that ensure the safeguarding of consumer rights and prioritize the well-being of individuals in these circumstances.
One of the members of the group, André Gelfi, the president of IBJR, asserts that the meetings have been incredibly smooth, and the guidelines regarding the advertisement of sports betting should strive to strike a balance between accountability and commercial feasibility.
These measures essentially establish a slightly more standardized dynamic among all participants in this market. They aim to foster a balanced playing field that ensures fair competition and promotes a level of consistency. By implementing these regulations, market participants are encouraged to adhere to a set of guidelines and practices that promote transparency and integrity. Such measures also serve to protect the interests of consumers and enhance overall market efficiency. Ultimately, these initiatives seek to create a more harmonious and equitable marketplace for all involved parties.
He believes that, despite the presence of senators advocating for a ban on advertising for the industry, the government should refrain from taking drastic measures.
According to the individual, "The government's guidance did not seem extreme in any way in terms of prohibiting advertising. I perceive a genuine concern in fostering market growth, which I believe is crucial in curbing informality."
