UK government mulls TV advertising review

The UK government is considering using its upcoming review of fixed-odds betting terminals to also examine the rules around gambling advertising on television.

This morning, The Times reported the government was preparing to call time on TV advertising before the watershed, primarily due to concerns around the industry’s exposure to “growing numbers of children”.

Speaking to The Times, an unnamed senior government minister said “the gambling industry’s luck has run out” with daytime advertising of bingo and TV spots around sporting events to be prohibited.

The report also stated problem gambling in the UK had “almost doubled” in three years from 0.4% to 0.7% – although EGR notes a recent study commissioned by the Gambling Commission found problem gambling rates had remained static at 0.5% for the past three years.

Despite The Times article, EGR understands no final decision has been made on whether or not to expand the scope of the review, although the inclusion of TV advertising does remain one of the options on the table, along with a review of social media marketing.

Should the government look at TV advertising, the process would take place little more than a year after the conclusion of a similar review undertaken by the Department for Culture Media and Sport (DCMS), the department responsible for gambling policy.

Bar a strengthening of rules around the promotion of free bets, last year’s DCMS review found no significant action was required with both the Advertising Standards Authority and the Committees of Advertising Practice satisfied with the strength of advertising regulation.

And speaking to EGR, Remote Gambling Association chief executive Clive Hawkswood said he saw little value in yet another review so soon.

“In the circumstances it would be unexpected and unusual to commission another widespread review of gambling advertising only a year later because there is no reason why it would lead to a different outcome,” Hawkswood said.

“Despite that we would of course co-operate fully with any new review process as and when the government confirms what its intentions are,” he added.

When contacted by EGR, a spokesperson for the DCMS refused to be drawn on The Times’ story bar to say: “We will continue to monitor the effectiveness of existing gambling controls and will take further action if necessary.”

Gaming analyst Gavin Kelleher at Goodbody commented that The Times report would “understandably” cause concern within the sector – share prices of listed companies all took a tumble this morning – but that there was no need for alarm.

“Past experience tells us that newspaper headlines and actual government recommendations often differ significantly,” Kellerher said in a analyst note.

“While a ban on TV advertising could impact market growth, it could be argued that industry margins would improve given it has been an area of irrational competition over the last few years.

“Furthermore, it could be argued that the larger established players with leading brands would be best placed to mitigate the impact over the longer term,” he added.