RGA announce whistle to whistle ban on gambling advertisements
Two of the biggest satellite broadcasters are bracing themselves for will be a big hit on advertising revenues, thanks to a recent announcement from the Remote Gambling Association (RGA).Last week, the Remote Gambling Association (RGA), which is made up of the following gambling companies; Ladbrokes, Paddy Power and Bet365, succumbed to pressure and agreed to stop all gambling adverts being aired during live sporting event! This news comes on the back of political pressure, what with Tom Watson, the deputy leader of the labour party calling for a ban and a 1% levy. The government has praised the industry for ‘stepping up’, but this is undoubtedly going to hit the gambling firms in the pocket. After the news hit the media, shares in William Hill dropped almost 3% and shares in 888casino dropped almost 5%. Then, GVC’s share price closed down at 5.6%.
Enhancements For 2019
On Thursday after agreeing on the new deal, the RGA said: “The Gambling Industry Code for Socially Responsible Advertising is reviewed annually, and several options are currently being considered as the basis for possible enhancements in 2019. However, nothing has yet been finalised.”
Tom Watson was only too pleased to add his comments; “There was clear public support for these restrictions and I’m glad that the Remote Gambling Association has taken its responsibilities seriously and listened.”
Jeremy Wright, the secretary of State for Digital, Culture, Media and Sport welcomed the news and stated; “Gambling firms banning advertising on TV during live sport is a welcome move and I am pleased that the sector is stepping up and responding to public concerns. It is vital children and vulnerable people are protected from the threat of gambling related harm. Companies must be socially responsible.”
Chief executive of the Senet Group, Sarah Hanratty said; “It has been clear for some time now that the volume and density of advertising and sponsorship messaging from gambling companies around live sport has become unsustainable. This is a welcome move from the leading industry operators who are taking the initiative to respond to public concern.”
Gambling Statistics
The gambling industry on football alone rakes in £1.4 billion in Britain. The bookies made £333.4 billion in profits placed on football between October 2015 and September 2016; that’s just an 11-month period! Carsten Thode, the chief strategy officer of marketing agency Synergy believes that television broadcasters will be worried; “We have been through this before, but this may well end up like the tobacco ban in F1. Something will eventually come along in its place, but we could see a short-term drop in revenue.”
Horse racing is the only exception to the impending ban, what with horse racing being a betting sport.
Marc Etches, of the GambleAware campaign group, said: “While we welcome this move, it is important to pay attention to analysis that shows the marketing spend online is five times the amount spent on television. The fact that it is reported one in eight 11-to-16 year olds are following gambling companies on social media is concerning.”