27th November 2016

Racing Holds Its Breath On Gambling Ads Debate

The 2005 Gambling Act opened the door to television advertising of sports betting two years later but legislation could be amended or reversed with huge implications for the British horse racing industry. The business plan on which ITV’s role as the sole terrestrial broadcaster of the sport is based contains provision for advertising revenue from gambling during daytime coverage. Banning betting related adverts before the 9pm watershed would create a totally different commercial environment.

The number of gambling commercials on British TV increased from 234,000 a year to nearly 1.4 million annually in the first six years since deregulation. The most significant increase is in the number that viewers under the age of 16 were exposed to and this has led to concerns and discussions about banning gambling commercials when minors are most likely to be viewing. There have also been an increase in the proportion of commercials that are betting related.

Consequently adverts on TV and social media could be banned or restricted because the authorities are concerned about their influence on children and the increasing number of young adults who have developed gambling problems. Bingo and sports betting ads are currently allowed before 9pm and research has shown that the number of young people with gambling problems from the age of 18 to 24 has trebled in three years. However, this statistic is irrelevant as this age group are deemed responsible enough to view adult related content and commercials.

Betting adverts that are ambiguous with regards free bets and promotions are increasingly being subject to review by the Advertising Standards Authority as a result of complaints. Several Premier League football teams and others from the lower leagues have partnerships and sponsorship deals with betting companies. Any youngster who goes to watch Stoke City play at home will be exposed to bet365 who own the club and are the shirt sponsors.

The major criticism is that betting companies can advertise to children all weekend. However, that assumes that the age group are watching the programmes around the adverts which are generally live sporting events. Logically children will be part of the audience but a more typical profile of a viewer is an adult male who is probably aware that he can place live bets during televised soccer matches. Banning betting adverts in the day will not totally address the issue of problem gambling.

The Premier League and football in general will survive without betting adverts but horse racing is vulnerable to a blanket ban before 9pm. Racing is intrinsically related to betting and the betting companies will no doubt be keen to place ads during ITV’s coverage of racing. There is already a strained relationship between bookmakers and racing and if they are not allowed to expose their services to the most relevant captive audience they could use their marketing budgets on other sports.

ITV will be showing British racing from January 1st on the main channel and ITV4. Revenue has been budgeted from selling advertising spots to bookmakers during the commercial breaks. The coverage is mainly in the day at the weekend which makes the current arrangements vulnerable to government legislation even though children are unlikely to be watching the racing live on television. The whole funding of racing could be implicated if there are no daytime gambling linked commercials.

Betting firms and broadcasters are not happy with the prospect of a daytime ban which is being mooted to protect children and problem gamblers. Its true that gambling firms’ spending on TV adverts has more than doubled in the last four years. The industry is subject to an imminent review that could also limit stakes on Fixed Odds Betting Terminals (FOBTs). ITV, Ladbrokes and William Hill would suffer most and they could reassess their investment in the British racing industry.

To counter the figures and concerns a spokesman for ITV pointed out there are strict controls in place. Apparently children in the 10 to 15 age group are exposed to just 17 seconds of gambling ads out of the average 17 hours spent watching television over the course of the week. The Department of Culture Media and Sport concluded last year that there was no need for a ban on gambling commercials in the day. Horse racing should feel safe that legislation will not change but who can predict anything in politics these days? A positive outcome for racing is far from certain.