ADVERTISING AND MARKETING
proximity with the viewers and making their influence much stronger. They are the beneficiaries of the democratization of content generation and provision. This contrasts with celebrities whose “god-like” appearances are deployed by brands. The impact of influencers over the past few years in gaming and gambling is not extraneous to the fact that “gamers tend to consume relatively small amounts of television or other sources of traditional advertising”. 2 Streaming has emerged as a powerful way of reaching this growing segment of the market and it is now widely acknowledged that the return on investment from influencer marketing is generally higher than that seen from other channels. 3 Whilst the value of influencer marketing is now accepted, its use is not without challenges especially in the gaming and gambling industries. This article explores the dynamics of influencer marketing in gaming and gambling, shedding light on the legal and ethical dimensions surrounding this practice. Using influencer marketing and gaming and gambling The first aspect to consider is the legal framework governing advertising in gaming and gambling. Advertising standards, disclosure requirements, and age restrictions are crucial in ensuring responsible marketing practices. Gaming and gambling companies must comply with these regulations to protect consumers, particularly vulnerable individuals such as minors. A central example of a legal framework with strong regulation over advertising in the industry is the United Kingdom, with two specific laws, namely the UK Code of Non- broadcast Advertising and Direct and Promotional Marketing (CAP Code) 4 and the UK Code of Broadcast Advertising (BCAP Code). 5 Influencer marketing and its related activities involve endorsements, necessitating compliance with relevant guidelines such as the Federal Trade Commission’s (FTC) endorsement guidelines. 6 These guidelines aim to ensure transparency and prevent deceptive advertising practices. Influencers must disclose their relationships with brands, whether through monetary compensation, free products,
or partnerships, to avoid misleading consumers. Clever Advertising is among a number of affiliates that adds value by acting as a content mediator in the relationship between remote gambling operators and influencers so that the content is duly validated and trustworthy. Influencers often use copyrighted content in their promotional materials, such as gameplay footage or logos. Reaching agreement over intellectual property rights is essential to avoid infringement claims and legal disputes. Gaming and gambling companies should provide proper licensing or permissions to influencers to use their copyrighted materials. The gambling industry is subject to specific regulations, varying across jurisdictions. Influencers promoting gambling-related content must adhere to these regulations to prevent illegal activities and protect vulnerable individuals. Responsible gambling messaging, age verification mechanisms, and compliance with gambling laws are crucial in this context. This responsibility is shared by the various players in the industry, namely operators and affiliates. Affiliates like Clever Advertising work with influencers with a track record of ethical and responsible promotions concerning the Gamble Aware principles. Risks and challenges Targeting Minors: The gaming and gambling industries face scrutiny and sanction for potentially targeting underage individuals and this extends to promotion through influencer marketing. Implementing age verification mechanisms and incorporating responsible gambling messaging is imperative. Companies should ensure that influencers’ content is not appealing to or accessible by minors, 7 especially when promoting gambling-related products or services. Cooperation should be limited to influencers that actively promote +18 warnings, not only when live streaming but also when conducting any other kind of promotion. Problem Gambling: Influencers, by definition, are in a position to influence their followers’ behavior, potentially exacerbating a gambling addiction. Responsible gambling messaging and clear disclosures regarding risks associated
2 Woodcock, J., & Johnson, M. R. (2019). Live Streamers on Twitch.tv as Social Media Influencers: Chances and Challenges for Strategic Commu- nication. International Journal of Strategic Communication, 13(4), 321-335 3 https://europeangaming.eu/portal/latest-news/2023/05/17/135743/the-future-of-influencer-marketing-in-the-igaming-industry 4 https://www.asa.org.uk/codes-and-rulings/advertising-codes/non-broadcast-code.html 5 https://www.asa.org.uk/codes-and-rulings/advertising-codes/broadcast-code.html 6 https://www.ftc.gov/business-guidance/resources/ftcs-endorsement-guides-what-people-are-asking 7 Zoi Potolia (2021). Deceptive advertising and its connection to unregulated gambling in the gaming industry. IInteractive Entertainment Law Review, 112–121.
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IMGL MAGAZINE | JULY 2023
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