The responsibilities of being a ‘mainstream’ industry
Christina Thakor-Rankin explores the impact of the Gambling Commission’s recent pledge to take tougher action against firms in breach of advertising rules or consumer law
The UK betting and gambling sector has spent the last decade trying to reposition itself as just another leisure activity – occasionally even as a lifestyle choice. Fun and entertainment to be enjoyed by all. It has used every available means of marketing, advertising, sponsorship and brand awareness possible to ensure the successful delivery of this message – and for the greater part it has succeeded. Gambling brands can be found quite literally everywhere, from daytime talk shows to public transport. Gambling is mainstream.
But with mainstream activity comes mainstream scrutiny and mainstream regulation. In today’s world of enhanced consumer protections where purveyors of every ilk are being held to greater account, it was only a matter of time before a sector whose customer engagement is founded primarily on ‘free cash’ came under the spotlight.
Most operators have always adhered to the principles of ‘fair and open’, considering experience, trust and brand reputation a more effective acquisition and retention tool. But as is always the way in any sector, a lack of visible enforcement and clear regulatory guidelines, coupled with the demands of operating in an increasingly competitive marketplace with straitening margins, has seen some push the boundaries of ‘fair play’ to the limit. Somewhat, unsurprisingly, the net result has been a steady increase in customer complaints about ‘rip-off’ bonuses and dubious practices, including withdrawal restrictions and questionable definitions of verification and dormancy.
In working with the Competition & Markets Authority (CMA), the body tasked with strengthening business competition and preventing and reducing anti-competitive activities, the Gambling Commission is merely doing its job and ensuring its licensees adhere to the law. Operators who care about the reputation of the sector, and have always tried to do the right thing by their customers, will welcome the Commission’s new intention to take tougher action against those who fail to play by the rules. This will go some way to levelling the playing field and address issues of public perception.
Tip of the iceberg
Unfortunately for the sector, fair terms is only one aspect of ‘consumer protection’. As those who work in the alcohol, tobacco, and more recently soft drinks and fast food sectors can attest to, consumer protection has many faces. In 2018, coming across the name of a gambling firm in every aspect of life is normal, just as other 18+ activities like smoking and drinking used to be, before stringent restrictions on advertising, marketing and sponsorship kicked in.
The Advertising Standards Authority (ASA) has already ruled against several gambling companies for ads which are misleading or appealing to children, and the recent reports about the high number of gambling adverts during the World Cup will only add extra fuel to the debate. Positioned against the backdrop of the FA turning its back on sponsorships with betting companies last year, and new regulations restricting or banning gambling advertising in other parts of the world, the industry doesn’t need a crystal ball to see how things could play out.
The Commission’s collaboration with the CMA is merely ensuring that everyone plays by the same rules and should be of little concern to any except those who wish to play by their own rules. What could be of greater concern is if this is a precursor to any future announcement linked to a collaboration with the ASA, the possible outcome of which could have significant ramifications for all.
Christina Thakor-Rankin has over 25 years’ experience at director level and above, covering all aspects of betting and gaming operations with some of the world’s best-known brands. She is currently principal consultant at 1710 Gaming and is a committee member of the National Council on Problem Gambling and the AIGF, and co-founder of the All-In Diversity Project.
