Study suggests Canadian regulators should pace themselves when crafting RG rules

The Canadian Gaming Association on Wednesday (25 September) released an academic and policy study. It posits that new gambling regulations in Canada are “evolving at a faster rate than the accompanying evidence base”. This could ultimately mean that regulations don’t tackle targeted issues and could be “insufficiently nuanced”.

The study – a “rapid review” – is designed to be informational for regulators and other stakeholders. GP Consulting conducted the study using a US-based team. The team included policy specialists from from Eilers & Krejcik and academics from UNLV’s International Gaming Institute and Washington State University.

The authors studied academic literature related to online sports betting and casino advertising and how it might inform responsible gambling programmes. In its final analysis, the team reviewed 41 studies.

Ontario’s rules already evolving

In April 2022 Ontario was the first province in Canada to launch regulated digital gambling. It appears that regulators in Alberta are moving to be the next. Ontario’s Alcohol and Gaming Commission (AGCO) have already revised existing rules.

In February, new regulations banning the use of celebrities and athletes in gambling advertising went into effect. Canada’s parliament is considering limiting when gambling ads could be shown on television – or banning them completely. Legislative bodies in the US and Australia are contemplating similar changes.

Study authors recommend targeted research in eight areas, including responsible gambling advertising, consistent measurement of exposure and outcomes and cultural bias.

Five themes for successful, safe ads

In addition, the authors identified five ‘themes’ critical to successful and safe advertising:

• Good taste/moral expectations: Don’t make false promises or use “misleading” content. The authors wrote that advertising should focus on responsible play and not suggest “excessive” play;
• Advertising to youth or vulnerable populations: This should be avoided;
• Advertising related to sports or celebrities: This rule is already in place in Ontario. For the broader Canadian market, the guidance is to avoid using celebrities and athletes, unless for responsible gambling advertising or marketing;
• Online gambling promotions and direct marketing: Enticements should be limited to direct marketing that consumers have opted into. Regulators should prohibit the use of “free”, “risk-free” and similar words or phrases; and
• Affiliate marketing: Operators must be held accountable for the actions of their affiliates.

The authors applied these themes to the markets of Denmark, Michigan, New Jersey, Ontario and the United Kingdom. Using this framework, the United Kingdom currently has the most stringent rules, followed by Ontario, Denmark, Michigan and New Jersey.

Study authors seem to indicate that in addition to more informed research, regulators in Canada and elsewhere should remain fluid in the future.

“The approach to regulation in Ontario was shaped in part by the necessity to integrate grey market operators into a regulated framework, ensuring that all market participants adhere to consistent standards of consumer protection and ethical advertising,” researchers wrote. “Many considerations about the current state of the market are dynamic and may change without regulatory intervention.”