UKGC Warns Operators Over Digital Ads
The Gambling Commission has warned UK operators to be aware of their responsibilities when it comes to digital advertising and third-party affiliate marketers. Publishing a statement highlighting the issue, the regulator outlined the core responsibilities of operators and their affiliates when it comes to posting online ads. The drive aims to reduce the number of gambling ads appearing on illegal websites, and in doing so reduce crime.
The gambling watchdog has told UK operators and their affiliates to be careful of which websites they post their digital ads on. ©Thirdman/Pexels
Crime Associations
The Gambling Commission, which regulates the UK’s casinos, betting shops and online operators, has issued gambling firms with a stark warning over their advertising practices. Publishing a statement to its website, the watchdog has called on operators to act responsibly when it comes digital advertising and third-party affiliates.
This month has already seen a number of penalties issued by the regulator. Online operator Genesis Global was fined £3.8 million, after an investigation uncovered social responsibility and money laundering failures.
The UKGC has reminded operators that it is up to them to ensure that their adverts are not placed on websites providing unauthorized access to copyrighted content. Specifically, license conditions and codes of practice 16.1.1 states that all licensees are accountable for the placement of their digital adverts.
License-holders have been reminded that it is their duty to take all reasonable steps to make sure that their ads aren’t promoted on sites offering unauthorized access to copyrighted content. That is also the case when it comes to third parties, which are often contracted by operators to manage aspects of the business.
Operators will be held responsible if a third-party marketing affiliate that they have employed has been found to have placed digital ads on such websites. It is therefore the responsibility of the operator to ensure that they are able to promptly terminate contracts with affiliates if they have posted adverts on illegal sites.
According to the Gambling Commission, advertising which is placed on such websites contributes to their funding. Consequently, it associates gambling with crime. The regulator’s stated aims are to keep crime out of gambling and to protect the vulnerable, so issues with digital advertising are a point of concern for the Commission.
Infringing Website List
The Gambling Commission’s warning to operators notes that in recent years the number of gambling ads appearing on copyright infringing websites has significantly fallen. Nevertheless, some gambling ads still appear on these sites, to the extent that the regulator has felt it necessary to draw attention to the issue.
The watchdog goes on to say that there is a demonstrable need for gambling operators to bring in extra controls or to review their current monitoring methods to ensure that this does not continue to occur. The Commission has not pointed out any more specific measures to prevent the issue, but has made it clear what is expected of its licensees.
For example, a suitable measure could include proactive use of the Infringing Website List, which is owned by the City of London Police Intellectual Property Crime Units. The IWL is an online portal that can be accessed to check an up-to-date list of copyright infringing sites.
By making the most of this service, advertisers, agencies and other intermediaries can take it upon themselves to voluntarily prevent their digital ads from being placed on illegal websites. The Gambling Commission is keen to encourage gambling operators to register with the IWL.
To streamline this process, the PIPCU has created a useful guide for operators and their affiliates. Once they have registered, it is up to operators and third-party partners to monitor the IWL portal on a regular basis, as it is continuously updated.
Changes for Affiliates
Ahead of the long-awaited overhaul of the UK’s gambling laws, the subject of advertising and affiliate marketing has been hotly debated. Some have argued that a ‘statutory regime’ on affiliate and third-party licensing for gambling advertisers should be introduced. The idea has been backed by the ‘Responsible Affiliates in Gambling’ trade body, as a way of reinforcing standards and marketing practices.
However, some affiliates have raised concerns that such a change as could subject them to one-sided contracts. They say that these contracts would stand in the favor of operators and could have a negative impact on their legal position in dispute resolutions.
In the Netherlands, similar problems have already arisen as a result of the launch of the online gambling market in October 2021. An investigation carried out by the Dutch Gambling Authority at the end of last year saw fifteen affiliate websites targeted. The Kansspelautoriteit issued thirteen of those affiliates with penalties.
Gambling affiliates in the UK fear that they could suffer a similar fate if they are targeted in incoming gambling legislation. The British government was expected to introduce new legislation late last year, but that has now been put off until May. The Gambling Act Review was launched in December 2020, and has since been fraught with delays.
The latest delay has been blamed on last year’s cabinet reshuffle, which saw the sacking of John Whittingdale. Chris Philp was brought in as the new gambling minister, and has hastily been brought up to speed with the review. However, many ministers have criticized the government for its slow progress.
