IMGL Magazine April 2023

RESPONSIBLE GAMING

regulated, needs to include information about the operator and the license granted to carry out betting games, which creates a culture of transparency, liability and good regulatory practice. Not to mention that these bans are contrary to the right of gambling companies to promote activities which they are legally authorized to perform. Impact of gambling advertising As we said before, restrictions on gambling advertising seem to be based on the notion that it significantly contributes to problem gambling. However, it is important to bear in mind that people with gambling risks / problem gambling may be more exposed to gambling advertising because they ‘may be more attentive towards gambling advertising […] due to the places they frequent (e.g., gambling sites) and gambling companies targeting advertisement directly towards them’ . Problem gamblers may be more receptive to gambling advertisements because they do, in fact, have a risk or problem associated with gambling. Yet despite this, banning advertisement does not eliminate problem gambling. As Binde clarifies: ‘Advertising is one of many environmental factors that contribute to the prevalence of problem gambling. The total environmental impact may be substantial. Only in particular conditions, such as extensive advertising for especially risky forms of gambling that are offered on an immature market with few if any player protection features (such as stake limits and possibilities for self-exclusion), may one assume that advertising in itself substantially contributes to problem gambling’ . We are not proposing that gambling advertising should be completely unregulated, but that it is essential to understand how it should be restricted in order to prevent harmful outcomes. Most gambling operators would agree with the implementation of any measure that efficiently reduces the prevalence of gambling problem. After all ‘Casinos need to have

customers in order to sustain themselves ’ and ‘the only way to have customers is to have customers who themselves are healthy and thriving and able to pay their bills and come back the next time’ 7 . Conclusions There is a worldwide trend to ban gambling advertising supposedly with the intention of reducing consumption and, therefore, reducing cases of problem gambling. However, studies on the matter show that a simple ban or misguided restriction does not generate the desired results yet has a disproportionate impact on the industry and the media. Robust responsible gaming policies should be composed of advertising campaigns for gambling activities that publicize the actions that both governments and gambling operators carry out to reduce the risks of problem gambling. Terminating the advertising of legal gambling completely can also give a boost to illegal gambling since it will only be unlicensed operators who promote their products. There needs to be a reasonable balance between excessive and oppressive restrictions and no regulation at all of gambling advertising. From a legal perspective, regulatory bodies and lawmakers should learn how to regulate in an efficient manner instead of promoting prohibiting dispositions that in the short term cause more harm than they are trying to prevent. In the words of André Syvertsen, Eilin K. Erevik, Daniel Hanss, Rune A, Mentzoni and Ståle Pallesen, in their Journal of Gambling Studies article Relationships Between Exposure to Different Gambling Advertising Types, Advertising Impact and Problem Gambling: ‘the fact that advertising types have different and unique characteristics makes it difficult to apply successful universal regulations’ 8 ; thus, a blanket ban on gambling advertising would have a little chance of success.

ALFREDO LAZCANO Chair, Lazcano Samano

ANDREA AVEDILLO Head of Legal Lazcano Samano For information contact +52 55 5292-0065 als@lazcanosamano.com

7 Pearson, B (2022, March 8). Can A.I. Help Casinos Cut Down on Problem Gambling? The New York Times. https:// www.nytimes.com/2022/03/08/technology/ai-casinos-gambling-problems.html. 8 Syversten A, et al., 2022.

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IMGL MAGAZINE | APRIL 2023

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