Gambling Advertising Spending Criticised by MPs

The gambling industry in the UK spent £2 billion on advertising last year, according to newly released research.

Marketing and Advertising Spending

Advertising spending by UK gambling companies has been criticised. ©AS Photography, Pixabay

Key Facts:

  • A new study revealing advertising spending by gambling companies in the UK has been released.
  • WARC’s research found companies spent £2 billion last year
  • The figures have been disputed by industry group BGC
  • MPs say gambling companies should cut what they spend

According to the leading media insights group WARC, gambling ad spending was in excess of the £1.2 million that online casino companies paid in tax last year.

WARC’s data found that the £2 billion figure covers affiliate marketing programmes, as well as spending on various print and digital promotions, such as via social media.

Alex Ballinger, a Labour MP and campaigner for increased gambling taxes and regulation for the industry, said £2 billion is an “astronomic sum” to spend on advertising.

He said: “Perhaps gambling firms should think about cutting back on adverts that nobody wants to see before pushing back against paying fair taxes on their vast profits, particularly given the harms they cause.”

Industry Hits Back at WARC Data

WARC’s data has been disputed by the Betting and Gaming Council (BGC), a standards body that is sometimes described as a pressure group for the gambling industry.

According to the BGC, industry advertising budgets were closer to the £1 billion mark, but some sources also indicate the £2 billion amount may be an underestimate.

Chair of the Treasury select committee, Meg Hillier, noted gambling companies have been spending large amounts on advertising despite issuing warnings over the potential of tax rises in the upcoming Budget.

Former prime minister Gordon Brown has called for a hike in gambling taxes in the Budget, which Chancellor of the exchequer Rachel Reeves will deliver on Wednesday.

Hillier said: “Unfortunately, the fact that we are told the existence of gambling firms is on a financial knife-edge while they simultaneously plough billions into advertising does not come as a surprise.

“During our session with the BGC, we were warned that any increase in gambling taxation could lead to 40,000 job losses. It’s important that the government does not cave into this industry scaremongering.”

Back in 2018, research conducted by Regulus Partners estimated that gambling advertising spending stood at around £1.5 billion a year.

Job Losses Expected If Gambling Taxes Rise

As the Budget draws closer and with Labour chancellor Reeves needing to find tens of billions of pounds to solve a budget deficit, tax rises are the subject of hot debate.

A BGC study recently found that plans to hike the tax rate paid by companies on gaming machines by more than 100% would cause 25,000 job losses. The organisation also claims that 3,400 bookies would have to close their doors as a result.

However, the WARC data suggests that gambling companies may be able to make cuts to their advertising budgets to avoid job losses should tax rises be announced as expected in this week’s Budget.

WARC’s director of intelligence, James McDonald, noted that the UK gambling sector now spends more on advertising and marketing in a year than the cosmetics and automotive industries. He said: “While TV spend is a major focus, social media platforms are also core to the sector’s marketing strategy.”

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Jamie Smith Author and Casino Analyst
About the Author
Having studied journalism at the University of Sunderland, Jamie initially embarked on a career as a professional football writer, working for clients such as MSN and AOL via Omnisport (now STATS Perform) but a few years ago he decided the freelance life suited him better. He now specialises in detailed sports betting and online casino guides.

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