Published on: November 22, 2024, 06:59h.
Last updated on: November 22, 2024, 07:04h.
A fresh federal bill concerning the gaming sector in Canada is sparking varied responses within the industry.
Bill S-269, introduced by Canadian Senator Marty Deacon, urges the Minister of Heritage Pascal St-Onge to establish new national guidelines on sports betting advertising, focusing on the content, timing, and volume of gambling advertisements.
If the bill is passed, the Minister would engage in discussions with provincial legislators, Indigenous groups, and gaming regulators to implement the new standards.
Impact of Gambling Advertisements
Single-game betting was legalized in Canada in 2021 (Bill C-218), and a regulated online gaming market was launched in Ontario in April 2022. Alberta is expected to follow suit with a similar market in 2025.
Since the introduction of the Ontario market, the surge in gambling advertising has raised concerns. Operators aiming for a competitive advantage flooded the market. Investigative media reports have highlighted the issues surrounding this influx of advertisements.
In a Senate presentation in September 2023, Deacon cited the excessive ads during the spring 2023 Leafs-Panthers NHL playoff series. She also mentioned the segments during breaks featuring betting tips, adding to the advertising saturation.
A key worry for Deacon and others, and a driving force behind the bill, is the potential negative impact of gambling on young individuals. Quoting an Australian study, she emphasized the likelihood of impulsive betting among young people, leading to a new generation of gambling addicts.
Furthermore, the increasing number of adult problem gamblers exposed to constant temptation while watching sports events contributes to mental health issues and societal problems like crime, bankruptcy, and suicides.
Concerns about Problem Gamblers
Deacon referenced the situation in the United Kingdom, where single-event sports betting was legalized in 2005 without stringent advertising regulations. The country now has an estimated 300,000 problem gamblers, with 55,000 of them being children.
“This is more than just a minor inconvenience,” Deacon told the chamber. “These promotions have serious, evidence-based adverse effects.”
A 2023 Ipsos poll revealed that 63% of respondents were fatigued by gambling ads, expressing a desire for advertising limitations.
Canadian provinces have the authority to regulate gambling activities within their borders, a power transferred back in 1985 by the federal government. The Alcohol and Gaming Commission of Ontario (AGCO) imposed its own advertising restrictions in February, including limitations on advertisements featuring celebrities who might appeal to minors.
While private operators are permitted in Ontario after obtaining licenses from the AGCO, Alberta only allows betting on the provincially managed Play Alberta platform.
Considering that some gambling ads are broadcast nationally, viewers in regions without private operator licenses may be misled (e.g., companies like BetMGM, licensed in Ontario, appearing in British Columbia, Atlantic Canada, and Alberta).
Calls for Industry Self-Regulation
Deacon believes that the AGCO’s advertising restrictions are insufficient. She does not advocate for a complete ban on gambling ads but rather legislation from a national perspective, akin to regulations seen in the cannabis, tobacco, and alcohol sectors.
The gaming industry is uncertain about the future implications of these regulations on their financial performance.
“PointsBet is dedicated to upholding high standards of advertising compliance. We understand the importance of responsible iGaming marketing to maintain stakeholder trust,” stated David Rivers, Senior Vice President of Marketing at PointsBet Canada.
“Current concerns about gambling-related ads mostly stem from below-the-line activities, which have less oversight compared to above-the-line advertising that already adheres to strict regulations and transparency as per the AGCO’s standards.
Addressing these below-the-line practices, rather than duplicating oversight of above-the-line efforts, could better protect consumers and build trust,” he added. “We welcome ongoing dialogues with regulators and stakeholders to ensure a fair approach that safeguards consumers while promoting a responsible and competitive market.”
CGA Study: Decline in Advertisements
The bill has sparked heated debates within the industry and media, with a notable Globe and Mail editorial on Nov. 13 calling for action on sports betting ads, emphasizing the need for timely legislation to curb the inundation of online betting ads during sports broadcasts.
The Canadian Gaming Association has voiced strong support for the industry.
The CGA commissioned a research study from Vivvix/Media Radar to quantify the extent of advertisements across Canada, conducted in Summer 2024.
The study encompassed all Canadian media between 2019 (pre-Ontario regulation) and 2023 (post-regulation). It analyzed television, print, out-of-home, radio, and digital ads, as well as NHL and NBA games broadcast by Canadian networks.
Paul Burns, President and CEO of the CGA, noted that the study reveals a lesser extent of ads than widely reported. He believes that the Deacon-sponsored bill may not be necessary due to the maturation of the Ontario market post-regulation.
Support for Problem Gamblers
“We now have data to track iGaming advertising post-regulation in Ontario for the first time,” Burns shared with Casino.org. “Operators must comply with various regulatory standards and guidelines, including those by the AGCO, thinkTV, Ad Standards Canada, as well as rules set by leagues and broadcasters, before airing an ad.”
In a recent interview with Gaming News Canada, Burns emphasized that legalized gambling in Canada has been regulated for nearly four decades and prioritizes responsible, dynamic, customer-centric practices.
“The urgency and call to action evident in gaming ads have existed for years, well before regulated gambling, contrary to public perception,” Burns explained. “Assertions of a lack of rules in the industry are unfounded and misleading. Our commitment to responsible gaming surpasses that of many other countries globally.
The desire seems to be to control volume and ban ads, though not explicitly stated. The industry acknowledges there are players with control issues and has invested significantly in tools to protect players’ well-being,” he added.
Legislative Standstill
Mark Harper, BVGroup’s Head of Emerging Markets, criticized the bill as a knee-jerk reaction fueled by sensationalized media coverage demonizing betting and gaming ads in Canada.
Harper highlighted that online gambling ads accounted for only 2% of all TV ads in Canada from 2022 to 2023, undermining the need for strict legislation.
Harper argued that the gaming sector already upholds high standards and conducts thorough research independently.
Burns, in his conversation with Gaming News Canada, pointed out that the perception of increased gaming ads stems from the burgeoning regulated industry. In reality, other industries might advertise their products more prominently.
Despite the ongoing debate, Bill S-269 passed the Senate and is now under consideration in the House of Commons for further progress. However, the legislative process faces challenges due to political gridlock and upcoming elections.
Future Prospects
The political impasse between the Liberal minority government and the Conservative opposition, along with impending elections, raises uncertainty about the bill’s fate. With limited time before the Christmas recess and other legislative priorities, the bill’s enactment remains uncertain.
As the political landscape evolves, the future of the bill and its implications on the gaming industry remain uncertain.