European Countries with the Toughest Restrictions on Gambling Ads

Ian Mac
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European Countries with the Toughest Restrictions on Gambling AdsEvery day, people are bombarded with commercials. Some of them stick in our minds, while others are truly boring. Advertising is a complex form of communication with the target audience on a psychological level. It is the art of influencing human behavior and encouraging people to make a particular decision. Some people are more susceptible to manipulative marketing than others.

The emotional effect that a commercial evokes is achieved through various tactics and methods of persuasion. Generally speaking, commercials consist of three basic elements: images, words, and a logo. Businesses use advertising to promote various products and services, and gambling is no exception.

Promoting gambling services is not as harmless as it may seem. Opponents of gambling, concerned about rising levels of addiction, believe that gambling commercials should be banned. Many European countries have already taken steps to restrict or completely ban gambling commercials in an attempt to limit the exposure of minors to gambling and reduce gambling-associated harms.

The gambling industry uses multiple channels to advertise its services, including radio, television, the Internet, the press, and affiliates. Specialists claim that the main problem with gambling commercials is that they emphasize words such as “win,” “luck,” and “fun” (all evoking positive feelings) rather than words such as “harm,” “threat,” and “addiction” (all with negative connotations).

The Impact of Advertising on Gambling Revenue

The Impact of Advertising on Gambling RevenueThe emergence of online casinos led to the growth of gambling advertising. Since online businesses do not have physical venues, their success is driven by marketing strategies. Online operators rely heavily on advertising to maintain their market share and attract the attention of players. Over the last 15 years, the online gambling market has grown exponentially, leading to increased advertising spend.

Estimates show that operators spend between 25% and 30% of their revenue on marketing. According to figures presented by Regulus Partners (RP) on the European commercial gambling market, the percentage of revenue generated from online gambling activities is approximately 40%, while the percentage of total revenue spent on marketing was over 10% in 2018.

The figures reveal that the revenue of European commercial gambling brands has grown in proportion to their increasing marketing spend. It is difficult to determine whether the increased consumption of online gambling products is mainly due to advertising, but advertising certainly plays a key role in attracting potential users.

Typical Advertising Channels for Commercial Gambling in Europe

Typical Advertising Channels for Commercial Gambling in EuropeNowadays, there are multiple advertising channels, including print media, radio, TV, social media, direct online marketing, sponsorship, and affiliate marketing. In 2018, a study carried out by GambleAware (an organization dedicated to tackling gambling-related problems) revealed that online advertising accounts for the largest share of marketing spend by gambling companies.

According to figures presented by RP, up to 60% of total marketing expenditure goes to affiliate and direct online marketing. The overall spend on TV and radio advertising is estimated at up to 15%, while social media advertising accounts for just 10% of overall gambling advertising spend.

The figures further reveal that print media and other traditional channels are the least preferred methods for gambling advertising and represent up to 2% of total marketing expenditure. The following infographic provides detailed information about overall marketing spend by channel type.

Advertising Channel Overall Gambling Advertising Spend
Print advertising 0-2%
TV & Radio advertising 0-15%
Other traditional advertising 0-2%
Sponsorship 2-5%
Social Media advertising 0-10%
Direct online marketing 10-60%
Affiliate marketing 10-60%
Source:

Advertising Channels

1Direct online marketing

It is regarded as one of the most attractive advertising channels because it offers numerous marketing opportunities, from purchasing ad space on specific websites to buying keywords in search engines. This approach helps an operator’s site appear at the top when a player enters the keyword.

2Affiliate marketing

This is another highly preferred channel for gambling advertising. Affiliates are large media businesses or websites designed to drive traffic to a particular gambling site. Because these sites are often not tied to any single jurisdiction, they are hard to regulate. As a result, operators favor affiliate marketing to bypass local advertising restrictions. However, casino affiliates have recently come under regulatory scrutiny, and the industry may soon face new rules for affiliate programs.

3TV & Radio advertising

These channels remain popular, but an increasing number of jurisdictions have begun imposing bans or strict limits on gambling commercials broadcast on radio and TV. This pressure has forced gambling operators to seek alternative ways to promote their services.

4Social Media advertising

Major social networks such as Facebook, Instagram, and Twitter are widely used by young people, so gambling operators view them as an effective way to promote their products and capture potential users’ attention. However, this channel accounts for only about 10% of total gambling ad spend, mainly because social networks require dedicated advertising formats to permit gambling content.

5Sponsorship

The main advantage of sponsorship is that it lets operators advertise their services even in jurisdictions with strict rules against gambling commercials. Such advertisements usually appear during major sporting events. Another benefit of this channel is its ability to reach a broad audience.

6Print advertising and other traditional advertising channels

These channels are less popular with gambling operators because reading is not a favorite activity among today’s young people. Additionally, some markets restrict gambling ads in print media, often requiring operators to hold a license from the local regulator.

Countries with Bans on Gambling Advertisements

Considering the stiff competition among operators, it is no surprise that the gambling industry is among the top spenders on advertising. However, the rise in gambling ad spending has sparked concerns about the negative effects of such commercials. As a result, many European jurisdictions have introduced bans on gambling advertisements. Their primary aims are to minimize gambling-related problems and to combat organized crime.

Latvia
Moldova
Albania
Kosovo

Countries with Restrictions on Gambling Advertisements

Some countries have chosen to impose a partial ban on gambling advertising. Promoting gambling services is therefore not completely illegal, but operators must comply with certain restrictions. Regardless of the jurisdiction, one principle remains clear: commercials must not target minors or vulnerable individuals. Each country that has adopted a partial ban has crafted its own specific conditions for gambling advertisements.

The United Kingdom
Italy
Belgium
The Netherlands
Spain
The Czech Republic
Poland