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U.S. Social Media Posts Broke Gambling Trade Group's Code, Study Says

September 9, 2024
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A new academic study suggests that leading U.S. online gambling companies are not complying with voluntary codes for including safer-gambling messages for ads on social media, even though the companies meet those standards in paid-for advertising.
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A new academic study suggests that leading U.S. online gambling companies are not complying with voluntary codes for including safer-gambling messages for ads on social media, even though the companies meet those standards in paid-for advertising.

The in the UK suggests that U.S. online gambling companies regularly violate the American Gaming Association鈥檚 (AGA) voluntary codes for what the researchers call organic advertising, or digital marketing using social media.

鈥淭he sheer volume of gambling ads, paired with a lack of warnings and responsible gaming messaging, reflects an aggressive marketing strategy,鈥 the researchers said.

An industry spokesman, however, responded with a claim that declaring sharing of sports facts or stoking of discussions on social media to be advertising is an 鈥渋rresponsible misinterpretation鈥.

The Bristol study found that all 310 paid-for ads it examined met AGA standards calling for safer-gambling messages and gambling helpline listings.聽聽

But more than 80 percent of the marketing promotions it found on social media were organic ads, and 58 percent of those were not clearly identifiable as advertising, according to the Bristol study.

About 8 percent of the ads were judged to be appealing to children, also a violation of the AGA鈥檚 guidelines, the researchers said.

鈥淪elf-regulation of advertising in the gambling industry often falls short of protecting young and vulnerable audiences; instead it tends to prioritize the industry's interests,鈥 said Raffaello Rossi, a marketing lecturer at the university who was the study鈥檚 lead author.

Many of the ads 鈥渂lur the line between entertainment and advertising, making it challenging for users, especially younger ones, to recognize that they are being marketed a highly addictive product鈥, Rossi said. 鈥淎lmost half of the all the ads in our study are hard to spot as advertisements, which highlights some real concerns about these techniques.鈥

Content marketing, or sharing information designed to engage audiences without reference to the product being promoted, constituted 52 percent of the organic ads, the study said.

The study was done by academic researchers who looked at 1,663 gambling messages disseminated by Flutter鈥檚 FanDuel, DraftKings, BetMGM and Penn Entertainment鈥檚 ESPN BET between July 29 and August 4 on Facebook, Instagram, TikTok and Twitter/X.

FanDuel declined to comment on the study, while BetMGM, DraftKings and ESPN BET did not respond to requests.

An AGA spokesperson said the trade group was 鈥減leased鈥 to hear all paid-for advertisements conformed to its .

鈥淗owever, categorizing all social media posts as ads misses the basics of brand communication,鈥 said senior vice president Joe Maloney.

鈥淟ike companies across other industries, sports betting operators provide relevant, engaging content to customers designed to maintain brand awareness without promoting a specific offering that is covered by the code, like sports betting,鈥 he said.

鈥淭o describe the sharing of sports facts, schedules, or discussion topics via tweets and posts on social media platforms as advertising and thus applicable to our code is an irresponsible misinterpretation,鈥 Maloney said.聽

鈥淲e're proud of our members' responsible advertising practices and their commitment to upholding strong industry standards, which continues to grow consumer trust in our industry鈥檚 overall commitment to responsibility.鈥

In addition, all the AGA鈥檚 member companies have 鈥渉ave age restrictions and a conspicuous (responsible gambling) message in their profile bios鈥, he said.

But Rossi said he found a claim that organic ads or content marketing are not advertising to be 鈥渁bsurd鈥.

The U.S. , the UK鈥檚 Advertising Standards Authority (ASA) and the Canadian Code of Advertising Standards all consider organic advertising and content marketing to be advertising, he told 麻豆传媒 GamblingCompliance.

An ASA spokesman said the UK agency considers to be 鈥渙nline material that does not explicitly promote a brand but is intended to stimulate interest in a company鈥檚 products or services鈥, and when directed at a UK audience, is 鈥渟ubject to the Advertising Code鈥.

On September 5, DraftKings Sportsbook鈥檚 feed on X had a promotion on football 鈥渟uper boost鈥 odds that included a gambling helpline number and the slogan 鈥減lease gamble responsibly鈥.

But it also had a number of messages without safer-gambling warnings promoting the start of the NFL season, such as one that included a picture of comedy actor Larry David with his feet up and the words, 鈥'What are your plans the next 5 days?鈥 My only plan: Watching football鈥.

The Bristol study also recommends federal legislation governing marketing of gambling, banning gambling content marketing on social media, and restricting use of celebrities in advertising.

The AGA specifically objects to the idea of federal laws targeting gambling ads.

鈥淟egal operators abide by robust state-based advertising regulations enforced by more than 5,000 regulators nationwide,鈥 Maloney said. 鈥淟egal industry operators also carefully follow well-established federal standards for responsible advertising that are in place for all industries.鈥

Rossi said he wished the publication of the research could 鈥渙pen a dialogue鈥, and that the trade group would consider suggestions that it tighten codes to add transparency, independent audits and penalties for non-compliance.

鈥淭he current codes are new and, understandably, not perfect,鈥 he said. 鈥淚 genuinely hope the AGA considers our findings to enhance the codes and ensure that children and young people are safeguarded from gambling-related harm."

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