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  • Norsk Tipping Reduces Ads Following Triumph over the Black Market

    Norsk Tipping Reduces Ads Following Triumph over the Black Market

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    Norway’s national lottery operator, Norsk Tipping, announced it will no longer promote its sports betting services on TV. This decision comes soon after the country’s major broadcasters vowed to stop promoting unlicensed operators.

    Norsk Tipping to Reduce Ads

    Earlier this year, the Norwegian Media Authority, the country’s media regulator, found out that the five biggest local TV operators are broadcasting ads for unlicensed gaming companies. As per the Broadcasting Act of 2021, the authority ordered TV channels to stop promoting illegal products. These orders applied to Discovery Network, Eurosport Norway, FEM, MAX and VOX, which were all found guilty of breaching Norway’s advertisement regulations. The said TV channels eventually complied, thus reducing locals’ exposure to illegal gambling content.

    Now that the major broadcasters have stopped promoting such offerings, Norsk Tipping pulled its commercials down from TV. The lottery operator believes that there is no need to over-promote gaming content now that there is no competition from the black market.  

    In addition, the lottery operator plans to scale down its overall marketing campaigns and save money. For example, the monopoly plans to stop promoting sports betting offerings via SMS.

    The Operator Will Remain Competitive

    Tonje Sagstuen, communications director at Norsk Tipping, said there is no longer a need for the operator to maintain such a high level of visibility. Now that unlicensed operators will no longer promote their products on the biggest TV channels, Norsk Tipping will be able to reallocate its resources.

    Norsk Tipping will not stop advertising entirely but will not advertise more than necessary, Sagstuen explained. The operator will keep enough ads to incentivize people to pick the legal offer but will not flood customers with adverts.

    Sagstuen also noted that the problem with unlicensed operators is that many of them promote highly-addictive verticals such as online casinos and online sports betting. Seeing the harm those verticals cause, Norsk Tipping plans to reduce its focus on such games and instead promote less dangerous products. Sagstuen noted that lottery games continue to enjoy a lot of popularity while being far less addictive than other offerings.

    Sagstuen warned that unlicensed operators will likely seek new ways to promote their products now that they have been barred from TV. He said that the black market may double down on advertising through social media, podcasts and email. Because of this, Norsk Tipping must remain competitive and ready to face its unlicensed competitors.

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  • BIA: Operators May Spend $1.8B on Ads in 2022

    BIA: Operators May Spend $1.8B on Ads in 2022

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    Each year, US gambling operators tend to spend a lot on advertising. With the US gaming market being as competitive as it is, no company can allow its marketing efforts to be lacking. BIA Advisory Services, a US-based consultancy, predicts that this year’s spending will be much higher than last year’s as gambling companies remain bullish on attracting more customers.

    BIA Believes Marketing Expenses Will Skyrocket

    Experts believe that US operators may spend as much as $1.8 billion to promote their products across the country. For comparison, last year, operators spent only $1 million on ads. Nicole Ovadia, vice president of forecasting and analysis at BIA, also shared that ad spending may reach $1.9 billion in 2023.

    However, the actual spending in 2023 may be much higher, depending on potential changes to the regulatory landscape. If, for example, another big state legalizes gaming, companies will have to spend more to expand their influence while the market is still fresh. One such state is California which may soon see the launch of its own sports betting market.  

    BIA experts also noted that the popularity of gaming helps local media sellers in regions where gambling is legal.

    Companies’ Spending May Depend on Regulations

    So, which are the biggest spenders? It is hardly surprising that the companies that spend the most on advertisement are also some of the biggest operators in the US. The list is headed by companies such as Caesars Entertainment, DraftKings and FanDuel, which all spare no effort to promote their products to gamers in the country.

    Caesars, for example, recently ran a $1 billion campaign to acquire new customers. Following this stellar campaign, the company’s chief executive, Tom Reeg, said that Caesars will tone down the ad expenses. FanDuel, on the other hand, will “spend what it needs in order to be competitive” but will try to maintain a degree of financial discipline.

    Despite companies’ intentions to take a step back and reduce the money they spend on marketing, the changing regulatory landscape may force them to spend some more. As mentioned, operators will have to adapt when new states launch legalized gambling. While everyone remains focused on the fate of sports betting in California, other states, including Ohio, Massachusetts and Maryland, prepare to legalize iGaming next year.  

    While more markets mean more expenses on ads, they also mean more customers. If companies hope to grab the lion’s share of customers in new markets, they would also have to invest more in ads.

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  • Two-thirds of Australians Want Gambling TV Ads Banned

    Two-thirds of Australians Want Gambling TV Ads Banned

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    Ads are the worst, right? Well, apparently, if you’re Australian, you don’t want tobacco, gambling, junk food, and alcohol ads on TV, and the numbers are exactly in that order. The last place is for burning fossil fuel ads, because who needs the planet?

    70% of Polled Individuals Support Ban

    The Australia Institute released the results from polling research it had conducted on August 29. It carries the rather loud title “Give Junk Food & Gambling Ads the Punt” and focuses on what Aussies think of junk food and gambling ads served on television. According to the full report, a total of 1,003 were polled on whether certain “controversial products” should be allowed to be run ads for on TV. It appears that more people support bans on alcohol, tobacco, junk food, and – of course – gambling, than they do for burning fossil fuels, for example.

    It’s important to note that tobacco is already banned in the country, with 74% of the people polled still expressing their support for it. Gambling is hot on the heels of this result, with 71% agreeing that ads for gambling should be illegal in Australia. Exactly two-thirds (66%) answered the same for junk food, with an additional agreement that junk food ads should definitely be illegal during “children’s viewing hours” with those hours not being shared in the report document.

    Lower down the list, we finally find alcohol, with the percentage of people agreeing it should be banned sitting at 51%. Fossil fuel burning ads should be illegal according to just 41% of the people polled. Fuel fossil ads are also flagged with the highest percentage of people who agree ads should not be illegal – 24% to be exact, marking that this is one of the more controversial products for people in Australia.

    The ban of gambling ads on TV is supported mainly by people who have self-identified as “Independent/Other”, “Greens” and “Labor” voters, making for a total of almost 90% amongst themselves. The ban on fossil fuels is mostly supported by the same group of people as well.

    Problem Gambling in Australia

    Australia has historically had a flourishing gambling industry, but that doesn’t come without its drawbacks. A poll conducted in February this year found that most soccer fans considered gambling ads in the Australian Football League (AFL) a problem, with 37% of people responding that way. Out of those, close to more than 70% were club members, which means that this concern is strong with people within the league – a big red flag.

    A study published in May painted a very worrying picture of Australian Defense Force (ADF) veterans silently struggling with problem gambling. According to the statistics from the study, a total of 13.4% of the study’s participants were suffering from this behavior currently or at least at some point in the last year, showing a significant part of them was affected.

    The Australian Gambling Research Centre (AGRC) at the Australian Institute of Family Studies (AIFS) for the Australian Institute of Health and Welfare (AIHW) released a comprehensive study on gambling in Australia in September of last year. According to the study, a total of 5.2% of the overall population was at some level of severity on the problem gambling scale, rated from “low-risk” to “problem gambling”. The data is for 2018 and concerns about 1.3 million people.

    Cited in that research was the 2017 Goodwin research which also looked at problem gambling. In it a very popular formulation was constructed: a problem gambler can affect up to six others around them, with that figure being halved for moderate-risk gamblers, and it drops to a single person affected from a low-risk gambler. Of course, those numbers mostly represent family members – spouses, children, and sometimes parents as well.

    It’s no surprise, then, that so many people would approve of banning gambling ads on TV. To be honest, however, who likes any kind of ads, really?

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