UK advertising watchdog closes loophole for overseas gambling operators
The previous rules allowed non-UK operators to target content marketing at UK consumers.
UK.- The Committee of Advertising Practice (CAP), author of the UK Code of Non-broadcast Advertising and Direct and Promotional marketing (the CAP Code), has closed a loophole for overseas gambling operators. The wording of the advertising code had previously excluded the content marketing of licensed gambling operators that were not based in the UK.
The Advertising Standards Authority (ASA) said that as of September 1, the code for the regulation of online marketing will now apply to all non-paid-for marketing communications targeted at UK consumers by advertisers who are subject to licensing conditions requiring compliance with the CAP Code, even if those advertisers do not have a UK-registered company address.
In practice, this means that all social media marketing posts from licensed gambling operators targeting UK consumers must comply with the CAP Code regardless of where the operator is based. The change means that such ads are subject to the same rules and standards as those from UK-registered operators, supporting consumer protection and regulatory consistency, the ASA said.
The Gambling Commission’s licensing conditions require compliance with the CAP Code and allow the ASA Council to rule on such ads by any licensed gambling operator, no matter where they are based. The CAP does not consider that the amendment will extend the Code to other categories of advertisers without a UK-registered address.
The CAP will review the impact of the amendment after three months. It’s invited stakeholders to provide any feedback by December 1.
Recent ASA decisions
The most recent ASA decisions on gambling adverts include upholding a complaint against an advert for the South African gambling operator Hollywoodbets. A 16 year old had complained that he was shown a banner ad for the brand on www.the-VFL.com, a website for Virtual Football League and EA SPORTS FC e-sport statistics website, on April 10.
The watchdog also upheld complaints against two advertisements for the sports betting app LEBOM. It says the ads on social media in April had encouraged socially irresponsible gambling behaviour as well as excessive drinking and, putting them breach of the CAP Code.
