Research: Gambling companies breach their own marketing rules

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A new study has revealed that leading gambling companies in the US are routinely breaching their own self-imposed marketing regulations on social media. The research, conducted by academics at the University of Bristol, focused on four prominent online gambling brands: BetMGM, DraftKings, ESPN Bet, and FanDuel.

High volume of social media posts lacking responsible gambling support

The study monitored the companies’ social media activity over a week this summer. It found that more than 75% of their non-sponsored content on platforms like Facebook, Instagram, X (formerly Twitter), and TikTok failed to include problem gambling support messages or helpline numbers. The study observed a total of over 1,000 posts during the period from July 29 to August 4, with these posts being viewed approximately 29 million times.

The American Gaming Association (AGA) had set out marketing regulations aimed at responsible advertising practices. However, the study concluded that these rules “are not being followed” by the operators. Despite the findings, the AGA has dismissed the study as an “irresponsible misinterpretation.”

The rise of social media in gambling promotion

With sports betting now legal in 38 states and Washington, DC, gambling operators have turned heavily to social media to attract new customers. The companies collectively published an average of 237 posts and advertisements daily, pushing their platforms and betting opportunities.

According to Dr. Raffaello Rossi, a marketing lecturer at the University of Bristol, this barrage of content “can make gambling seem like a normal activity,” which could lead to increased participation, especially among vulnerable groups, including the young.

Breaches of the Responsible Marketing Code

Out of 1,353 posts reviewed by the researchers, 1,012 were found to possibly breach the AGA’s responsible marketing code for sports betting. The posts failed to include messaging aimed at promoting responsible gambling, such as helpline numbers or warnings about problem gambling.

Interestingly, all paid advertisements – a total of 310 during the same period – were found to comply with the industry’s guidelines. However, the high volume of non-compliant organic posts raises concerns about the industry’s broader marketing practices on social media.

AGA defends operators’ social media activity

Despite the findings, the AGA has defended the gambling companies, emphasizing that social media posts shouldn’t all be considered advertisements. According to Joe Maloney, Senior Vice President at AGA, “categorizing all social media posts as ads misses the basics of brand communication.” He argued that many posts aim to engage audiences without directly promoting gambling services.

Maloney further noted that the study’s classification of social media content as advertising was a misunderstanding, and he maintained that sports betting operators follow the code when it applies to specific gambling offerings.

A call for federal legislation

The study’s authors believe that the lack of adherence to responsible marketing guidelines points to a need for stronger regulatory oversight. They have called for federal legislation to provide clearer and more consistent regulations across the US. The AGA, however, opposed such measures, claiming that current state-based regulations are sufficient. Introducing federal overregulation, the AGA argued, would undermine state regulators and give an advantage to illegal gambling markets.

Conclusion

The expansion of the US gambling industry has led to a growing reliance on social media for marketing purposes. While operators are bound by marketing codes designed to encourage responsible gambling, the study suggests that many fail to fully comply with these guidelines. The debate over regulation continues, with some calling for federal intervention and others advocating for the current state-level approach to remain.

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