Canadian Gaming Association Highlights Need for Nuanced Gambling Regulations

Informational Study for Regulators and Stakeholders

Designed to inform regulators and stakeholders, the study reviewed academic literature on online sports betting, casino advertising, and their implications for responsible gambling programs.

The final analysis, based on 41 studies, aims to guide policymakers as Canada’s gambling landscape continues to evolve.

Ontario Leading in Regulatory Evolution

Ontario became the first Canadian province to regulate digital gambling in April 2022, with Alberta expected to follow. Ontario’s Alcohol and Gaming Commission (AGCO) has already revised its rules, including a February 2023 regulation that bans the use of celebrities and athletes in gambling advertising.

Canada’s parliament is now considering further restrictions, such as limiting or potentially banning gambling ads on television.

The study also draws parallels with legislative efforts in the US and Australia, where similar measures are being considered to address concerns over the impact of gambling advertising.

Recommendations for Targeted Research and Safe Advertising

The study’s authors identified eight areas for targeted research, including responsible gambling advertising, consistent measurement of advertising exposure and outcomes, and accounting for cultural differences.

Additionally, they outlined five critical themes for successful and safe advertising practices:

1. Good Taste and Moral Expectations: Advertisements should not make false promises or use misleading content. The focus should be on responsible gambling, avoiding suggestions of excessive play.
2. Avoid Advertising to Vulnerable Populations: Marketing should steer clear of targeting youth or other vulnerable groups.
3. Celebrity and Sports-Related Advertising: The study supports Ontario’s rule prohibiting the use of celebrities and athletes in gambling ads, except for responsible gambling messages.
4. Limit Online Promotions and Direct Marketing: Enticements should be restricted to direct marketing that consumers have opted into. Terms like “free” and “risk-free” should be avoided.
5. Affiliate Marketing Accountability: Operators should be held responsible for the marketing practices of their affiliates.

Global Comparisons and Future Fluidity

The study also compared regulatory approaches in several jurisdictions, including Denmark, Michigan, New Jersey, Ontario, and the United Kingdom.

The UK was found to have the most stringent rules, followed by Ontario, Denmark, Michigan, and New Jersey.

In addition to its research recommendations, the study stresses the need for regulatory flexibility.

As noted by the authors, Ontario’s regulatory framework was shaped in part by the need to incorporate grey market operators, ensuring consistent standards of consumer protection and ethical advertising.

The researchers highlighted that the dynamic nature of the market might require further adjustments in the future, even without regulatory intervention.