growth of sports betting and related ads deserves scrutiny, canadian researchers say
5 minute read
the head of the university of b.c.'s centre for gambling research says he supports an ontario health agency that recently recommended a ban on the use of celebrities in gambling advertising and the removal of such ads during sports broadcasts.
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the head of the university of b.c.’s centre for gambling research says he supports an ontario health agency call for a ban on the use of celebrities in gambling advertising and the removal of such ads during sports broadcasts.
luke clark, director of the ubc centre for gambling research, said he worries about the growing popularity of sports betting and the role that advertising might have on children and youth.
“sports betting has been a very fast-moving thing over the last few years,” said clark, whose research centre is funded by the provincial government and the b.c. lottery corp. ““so i would say that we do need data quite urgently across canada and here in b.c. about the uptake of sports betting products in particular and their impact on the rates of gambling problems.”
the warning comes as bclc aims to market to a younger audience to boost revenues and offset the drop in older gamblers who frequent casinos.
“bclc has recognized that further investment is required to address high revenue concentration in a relatively small player segment by appealing to younger demographics that typically make up light and casual players,” according to bclc’s 2023-24 to 2025-26 service plan, which notes younger people gravitate to playnow.com and sports betting in particular.
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“bclc is continually tapping into a younger demographic as we shift from a product-centric company to an experience-centric one. bclc will address this shift by expanding its sports book offerings and creating new offerings to attract new players.”
last month, the centre for addiction and mental health called on the ontario government to ban gambling ads during sports broadcasts and restrict the use of celebrities or sports stars in those ads. in april, ontario gave the green light for private online betting sites to operate alongside the provincially run betting agency.
nigel turner, a researcher at the toronto-based centre, said that’s led to a flurry of gambling ads during sports broadcasts, many of which are viewed by millions across the country, including british columbians.
that’s a problem, turner said, because evidence shows people’s exposure to gambling ads influences their intentions to gamble and increases gambling activity. this is especially true for children and youth and people already experiencing gambling problems.
clark said given the links between gambling advertising and gambling behaviour, there’s a need for “very close scrutiny” of the role of gambling advertising in b.c. and nationally.
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“sports betting can become addictive in the same way that many forms of gambling can become addictive,” he said.
gambling disorder is a recognized mental-health diagnosis, clark said, a debilitating condition that could lead to financial problems including bankruptcy, and with significant links to suicide and depression.
the u.k. has, since 2019, prohibited gambling advertising from being shown five minutes before a match begins until five minutes after it ends. an analysis of the so-called whistle-to-whistle ban found it led to a reduction of 1.7 billion views of betting ads during the first five months it was in operation, according to the u.k.’s betting and gaming council.
b.c.’s gaming policy and enforcement branch lays out guidelines for how gambling can be advertised and marketed. for example, gambling ads must not encourage people to play beyond their means, imply the certainty of financial reward, or present gambling as an alternative to employment or as a financial investment.
pat davis, ceo of crown corporation bclc, said he’s “disappointed that the privatization (of betting sites) in the ontario market has resulted in this influx of advertising and in particular ads that don’t align to the same standards which we follow in terms of our advertising.”
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bclc does advertise its online gaming website playnow.com and lottery products during sports broadcasts but davis said those ads don’t target minors and don’t rely on celebrity endorsements.
“we’re aware of the fatigue that is being been created by this flood of advertising from ontario and it’s something that we’re adjusting our advertising based on,” davis said.
the bclc’s online gaming website, playnow.com, launched in 2004, was expanded in 2021 to include single event sports betting when it was legalized by the federal government. playnow.com competes with illegal online gambling sites that operate in b.c. and across the country.
davis said he supports a broader review in partnership with the provincial and federal government on gambling advertising standards. bclc is part of a coalition of five provincial gaming corporations that last year called on the federal government to crack down on illegal gambling websites and misleading ads.
asked about the push to a younger demographic, davis said it’s important to note the reference point is from a current average demographic of people in their mid-50s. “so when we talk about attracting a younger demographic … we’re really referring to folks sort of in their 30s.”
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bclc is governed by player health standards that set out strict guidelines on how problem gambling is identified and managed, davis said. that includes allowing players to set limits and budgets on how much they gamble and the ability of a player to choose to take a short- or long-term break from gambling. bclc has dedicated gamesense advisers available to talk to players, while the province offers problem gambling programs and services that including counselling.
there are also protocols to prevent minors from gambling online, davis said. players must provide their date of birth and address, and that information is checked against the credit monitoring site equifax.
bclc is also working on implementing biometric recognition technology, he said.
sports betting has been a major driver in the soaring revenue experienced by bclc’s electronic gambling platform, which it calls egaming. egaming brought in $293 million for bclc in the 2021-22 fiscal year, accounting for 22 per cent of the crown corporation’s net income of $1.3 billion.
egaming, according to bclc, had “unprecedented growth” during covid-19, which mitigated some of the revenue lost when casinos were closed.
“playnow.com sustained the majority of revenue growth experienced during casino closures in fiscal 2020-21 and continued to grow through strategic initiatives such as the successful launch of single-events sports betting,” the 2021-22 annual report said.
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egaming revenue is forecast to hit $469 million in 2022-23 and projected to rise to $576 million by 2025-26. that means bclc expects egaming revenues to eclipse lottery revenue in the next four years.
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