The issue of whether gambling advertising should be regulated is an important one. It raises issues related to law, ethics and social impact.
Legality of such advertisements will depend on state and federal laws, as well as the nature and content of any promotional material used.
Legality
Legality of gambling advertising can be a complex and evolving issue.
Marketing executives must therefore make educated guesses as to the outcome of a given legal dispute. Furthermore, they should take into account any unresolved legal matters which may come up in the future.
In the United States, various state regulations have been put in place to control gambling advertising. These laws range from prohibitions against mail and interstate commerce to exceptions for charitable casino games.
However, these laws do not address the promotion of internet gambling by licensed casinos. As a result, they could face additional legal challenges, including constitutional ones.
Addictions
Gambling an addiction can have serious financial, social and psychological repercussions. It may also lead to family conflicts and strain on relationships.
Gambling addictions can be treated. Treatment may involve individual or group therapy, self-help groups such as GamCare and Gamblers Anonymous, or a combination of the two.
Gambling addictions often experience an intense craving for the activity and become so intoxicated by its high that they neglect to prioritize their own financial stability. This can lead to a destructive cycle of gambling and loss.
Pathological gambling, similar to substance abuse, can have a devastating effect on both society and healthcare. It places an immense financial strain on hospitals and doctors who must spend extra time treating patients; furthermore, it contributes to criminal activities like drug trafficking or gang warfare.
Social impact
Governments concerned about the social consequences of gambling should avoid excessive advertising. This is particularly true if it appeals to children and young people.
Gambling advertising is unfortunately still widely visible to the public, including sponsorships on sports merchandise and online advertisements.
Young adults in particular tend to be more exposed to gambling advertisements than older consumers, making them especially vulnerable. Furthermore, those recovering from gambling addiction may feel pressured into gambling again due to the normalization of such ads.
Gambling advertising has been reported to have a positive effect on knowledge of gaming forms and operators, though its effect size is harder to measure. Online and direct advertisements appear more effective than TV, retail outlet or newspaper ads at increasing gambler awareness and participation levels. Thus these types of advertisements could potentially have more beneficial effects for gamblers overall.
Regulation
Gambling advertising refers to any marketing that promotes casinos, lotteries, bookmakers or other organisations offering bets. Although not as strictly regulated as tobacco or alcohol advertising, it still has strict regulations about how it may be conducted.
Research suggests gambling advertisements target people at risk of developing problems or those with existing addictions. It’s also an attempt by gambling companies to draw in new customers and encourage existing ones to spend more money.
The gambling industry is resistant to having its advertising regulated. But experts point out there is precedent for such a step.
In Australia, gambling ads are prohibited during TV programs classified G or lower or those directed at children between 5 am and 8.30 pm. Furthermore, advertising of sports betting is strictly forbidden during live broadcasts of sport events.
