IMGL Magazine April 2024

ADVERTISING REGULATION

combines industry-led initiatives with regulatory oversight. Industry stakeholders should develop and enforce stricter advertising standards and codes of conduct. This should include prohibiting the targeting of vulnerable populations such as youth and problem gamblers. Advertisers should also be required to follow clear guidelines regarding the content, placement, and frequency of gambling advertisements to minimize their potential impact on susceptible individuals. Cooperation Alongside stricter advertising standards, regulatory authorities such as the SRIJ should also be more active in overseeing gambling advertising practices and enforcing compliance with existing regulations. This may involve conducting regular audits of advertising campaigns, investigating complaints from consumers, and imposing sanctions on advertisers found to be in violation of advertising standards. Operators, industry associations and advocacy groups should, in turn, collaborate to establish independent monitoring and enforcement mechanisms to ensure compliance with advertising standards and codes of conduct. This may require the formation of a dedicated group that monitors gambling advertising practices. Such an approach should naturally be supported by the regulator, as it would bring an extra layer of credibility to the process. Regular meetings should be held so that progress and challenges are kept on track. Claims and complaints The SRIJ website features two sections – “claims” and “complaints” – that are designed to help the public report issues and grievances related to gaming operators in Portugal. However, it is evident that these resources are not being adequately publicized, limiting their effectiveness in terms of facilitating the regulator’s response to issues. We believe that the “claims” and “complaints” sections, when combined with data collected from the public, represent the most effective approach for the regulator to respond to complaints and issues related to gaming operators. These resources provide accurate information and allow for self-regulation, which is

critical to achieving the regulator’s objectives.

In an ideal scenario, we recommend that Portugal adopts a similar approach to that of the UK 5 , where gaming operators are encouraged to address complaints directly with their competitors in the first instance. If the dispute is not resolved within a reasonable timeframe, the matter can then be escalated to the SRIJ for further review and investigation. By adopting such an approach, Portugal can create an environment that promotes fair competition and encourages self-regulation among gaming operators. This, in turn, will help to ensure that the interests of the public and the gaming industry are protected and that any issues are resolved promptly and effectively. Social media The advertising of online gambling on social media platforms is a matter of concern, as demonstrated by the strict rules that govern it within the terms and conditions and policies of these platforms. These rules, however, contain narrow definitions of advertising, resulting in user-generated content falling outside the scope of self-regulation and creating a regulatory gap, as recently studied. 6 While social media companies have established strict rules governing advertising placed by them, they shift responsibility for user-generated content onto the users and fail to enforce the prohibition of gambling advertising ex-ante, relying instead on notice and take-down requests by regulators. This approach has resulted in social media companies categorizing commercial gambling advertising posted by influencers as user-generated content in peer-to-peer advertising and refusing to accept responsibility for policing such advertising. It is our belief that users should be obliged to label commercial advertising conspicuously so that it can be easily distinguished from genuine user-generated content. A clear distinction between advertising and user-generated content is essential for effective regulation. Furthermore, the same rules on advertising, both self-regulation, and state regulation, should apply to affiliate advertising on social media posts, as apply to advertising placed by the social media company itself. By doing so, social media companies can establish a level playing field and

5 Available at https://www.asa.org.uk/make-a-complaint.html 6 Hörnle, J., Schmidt-Kessen, M. J., Littler, A., & Padumadasa, E. (2019). Regulating Online Advertising for Gambling – once the Genie is out of the Bottle … . Information and Communications Technology Law, 28(3), 311-334. https://doi.org/10.1080/13600834.2019.1664001

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IMGL MAGAZINE | APRIL 2024

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