Study: Dutch Online Gambling Advertising Ban Has Little to No Impact on Regular and Heavy Players

Former University of Amsterdam Economics student Marcel Wieting has won the Netherlands Gambling Authority’s 2019 Thesis Award with his master’s thesis Advertising in illegal markets. Evidence from online gambling in the Netherlands.

Wieting found that a ban on the advertising of online gambling services can be effective in displacing online gambling ads to unpopular websites, rendering the effect of display advertising largely useless for the purpose of recruiting new players.

Regular and heavy players, however, consume gambling services even in the total absence of marketing. Consequently, these players can be targeted through emails or directly in the gambling portal or app.

Hence, gambling advertising restrictions can be expected to only have a rather limited effect on the consumption of gambling services and, moreover, be detrimental to the player channelization rate in the future regulated market.

 

IBIA Issues Warning over Swedish Betting Controls

The International Betting Integrity Association (IBIA) has warned that betting restrictions proposed by the Swedish regulator Spelinspektionen would be likely to have a negative impact on the country’s market channelization rate.

The Swedish regulator proposed to limit betting markets for in-game events such as yellow cards in football or faults in tennis in order to prevent match-fixing.

However, a study by H2 Gambling Capital finds that if Spelinspektionen’s proposals are implemented, the channelization rate in Sweden could fall as low as 70% – an 11% reduction from where it is now.

While just 8.9% of players in Sweden bet on these markets, they represent around 40% of the market’s total gross revenue.

Even more importantly, most match-fixers focus on unregulated Asian markets, rendering strict European regulation of local bookmakers almost wholly irrelevant.

 

Upcoming Events

The following events may be of interest to members of the GiH community.

  • Don’t miss the Gaming in Germany Conference on 24 – 25 March at Frankfurt International Airport. Learn all there is to know about Germany’s long-awaited online gambling reform. Registration is now open!
  • Tune in on 31 March for the webinar Bonus Abuse Exposed – Insights from a Former Professional.
  • GamblingCompliance Global Regulatory Awards 2020, which celebrate excellence in compliance and responsible gambling initiatives, will be awarded on 22 April, 2020 at the De Vere Grand Connaught Rooms in Central London.
  • The European Gaming & Amusement Summit, an entirely new event exclusively focused on land-based amusements and gaming, will take place 12 – 14 May in Dublin.
  • The World Gaming Executive Summit will return to Barcelona from 30 June – 2 July, 2020. Key themes on the agenda include AI, the future of land-based gaming, CSR, sustainable marketing, regulation updates, fantasy sports, and emerging marketing opportunities.

 

Netherlands Gambling Authority Opens Public Consultation on National Problem Gambling Office

The Netherlands Gambling Authority is calling on stakeholders to share their thoughts on the proposed national problem gambling prevention office (Landelijk loket verslavingspreventie).

The problem gambling prevention office will have to be designed from scratch and must be up and running by July 1, 2021.

The prevention office is mandated by the Dutch Remote Gaming Act and must be able to offer 24/7 guidance to consumers on problem gambling issues.

Stakeholders may respond to the public consultation until March 13.

 

Other News

The Regional Council of Darmstadt, the body handling Germany’s federal sports betting licensing process, is preparing to take action to block several operators from the German market.

 

Denmark’s gambling regulator Spillemyndigheden has revealed that access to 25 sites was blocked as part of its efforts to stamp out illegal activity in the country in 2019.

 

William Hill-owned Mr Green has been ordered by the UK Gambling Commission to pay £3m to the National Strategy to Reduce Gambling Harms because it failed to have effective procedures aimed at preventing harm and money laundering.

 

The Stars Group has posted a 24.6% year-on-year rise in its full year 2019 revenues, with total revenues hitting $2.5bn (£1.9bn).

 

The Austrian government is looking to establish an independent gambling regulator in the country.

 

Software supplier Digitain has continued its global expansion with the launch of its product offering in Portugal and Romania.

 

The Turkish government has introduced plans to block access to illegal sports betting sites.

 

Former England international Daniel Sturridge has been suspended from all football-related activity for four months, after being found guilty of breaking betting rules.

 

Chinese Minister of Public Security Zhao Kezhi has announced further plans to crack down on illegal gambling and said it is necessary to create a “blacklist” of gambling sites.