A global analysis of celebrity gambling endorsement laws

Abstract

This article explores the regulations for celebrity endorsements in gambling advertisements in select jurisdictions, specifically Ontario, the United States, the United Kingdom, the Netherlands, Italy, Belgium, and France. It explores each jurisdiction’s laws related to celebrity gambling advertisements, the potential penalties for violations, and the enforcement actions brought against stakeholders who have violated their respective laws. Regardless of the jurisdiction, the use of celebrities and public figures to promote gambling products is subject to public scrutiny. By comparing the regulatory responses in these diverse markets, the article examines which approaches are most effective, and how future regulatory policy could be designed to maximize effectiveness for both regulated operators (“Operators”) and for the safety of the general public.

Introduction

Since Ontario became the first regulated iGaming regime in Canada in April 2022, one of the most discussed topics about the industry has been the influx of gambling advertisements across the province (and the country as a whole). There are multiple reasons why gambling advertisements in Ontario have been controversial:

1. Their frequency – there have been reports that up to 20 percent of certain televised sporting events can be spent watching gambling advertisements,
2. Their scope – advertisements promoting Ontario-licensed sportsbooks can still be viewed by consumers across Canada, and
3. Perhaps, most notably, the use of celebrities in advertisements – ranging from globally renowned actors like Aaron Paul (Breaking Bad), Jon Lovitz (Saturday Night Live), and Jamie Foxx (Any Given Sunday), to some of the country’s most well-known public figures and professional athletes like Wayne Gretzky, Connor McDavid, and Auston Matthews (collectively, “Celebrities”).

It took about a year for Ontario’s igaming regulator, the Alcohol and Gaming Commission of Ontario (the “AGCO”), to hold consultations with various stakeholders to amend the AGCO’s Registrar’s Standards, the regulatory rules required to be followed by Operators in the province. As part of the amendments, which came into force on February 28, 2024, the AGCO prohibited Ontario registered igaming Operators from using (i) athletes, whether active or retired, in igaming marketing and advertising, or (ii) celebrities, role models, social media influencers, entertainers, cartoon figures, and symbols that “would likely be expected to appeal to minors”.

However, the revisions to the Standards do not require Operators to end all their relationships with athletes and celebrity brand ambassadors. The Standards were revised to allow Operators to use active or retired athletes in their advertisements by adjusting the content of their advertisements to promote responsible gambling instead of advocating for viewers to use an Operator’s platform. An example of the shift in strategy can be seen from BetMGM, who originally launched a commercial featuring Connor McDavid practicing his slapshot with Wayne

Gretzky looking on and winning a bet on his BetMGM App. After the changes to the Standards, a new commercial was published where McDavid is discussing BetMGM’s responsible gambling tools.

With respect to celebrity brand ambassadors, the AGCO issued additional guidance providing that while the nature of an individual’s appeal to different groups is fluid, Operators should use their judgement as to whether the individual in question would “likely appeal” to minors. Some factors that Operators may consider when establishing their criteria for assessing the likelihood of an individual’s appeal to minors include, but are not limited to: the demographic composition of the individual’s following or fan base, an assessment of the individual’s audience demographic data, and whether the individual has obvious and direct links to activities that are popular for minors (e.g., did the individual gain or enhance their notoriety for appearing in a film that appeals to minors).

The Gaming Control Act allows the AGCO to fine corporations up to CA$500,000 for most violations of the Standards. Many Operators have been fined in Ontario due to various advertising activities, such as for offering bonuses and inducements, but as of writing this article, no fines have been issued to Operators for violating the standards related to celebrity endorsements. So, how do Ontario’s revised standards for celebrity advertising compare to other regulated jurisdictions’ approaches?

United States

After the U.S. Supreme Court in 2018 struck down the federal ban on state-authorized sports betting, various states have regulated online sports betting, and a handful of states have regulated online gaming. Predictably, regulated betting and gaming has led to a proliferation of gambling advertisements, which has led to concerns about the volume of gambling advertisements across the United States.

In 2019, the American Gaming Association (“AGA”), the United States’ main industry advocacy group, introduced the Responsible Marketing Code for Sports Wagering (the “AGA Code”). The purpose of the AGA Code was to introduce uniform marketing standards for gambling Operators. The Code specifies that “models, actors, influencers, athletes and entertainers appearing in advertising should be a minimum of 21 years old, substantiated by proper identification,” but there is not an outright ban on the use of Celebrities.

While the AGA Code seeks to establish uniform standards for all Operators across the country, the actual sanctions that the AGA can impose are limited. For example, if the AGA finds that an operator has published an advertisement that has violated the AGA code, they can request that the operator withdraw or revise their advertisement, and/or publish on their website the nature of the advertisement, the code violation, and the Code Compliance Review Board’s decision.

However, since online gambling is regulated at a state level (as opposed to federally), the advertising laws related to Celebrities can vary widely. For example, in states such as Colorado and Michigan, there is no mention of celebrity advertising whatsoever in their internet gambling regulations. Some states, such as Connecticut and Massachusetts that do mention Celebrity marketing in their gaming regulations, state that advertising materials (which may include celebrities, symbols, cartoons, symbols, themes, and/or language) shall not target or appeal to audiences under the age of 21. Illinois has an additional restriction that prevents anyone who is, or appears to be, under 21 from appearing in advertisements, while Virginia expressly allows professional athletes who are under 21 to be in advertisements.

While there have been fines imposed by gambling regulators in the US for certain advertising activities, there has not yet been an Operator in the US that has been fined by a state regulator specifically for the use of Celebrities in gambling advertisements.

United Kingdom

The Gambling Act (2005) (the “Act”), was revised in 2014 to allow the United Kingdom Gambling Commission (the “Commission”), the body responsible for regulating gambling in the United Kingdom, to license and regulate online gambling Operators. Their licensing standards, known as the License Conditions and Codes of Practice (“LCCP”), require that Operators comply with various advertising codes and bodies. These include the Advertising Standards Authority (“ASA”), the Committee of Advertising Practice Code (“CAP”), the Broadcast Committee of Advertising Practice Code (“BCAP”), and the Industry Group for Responsible Gambling (“IGRG”) Code for Responsible Advertising.

The ASA, which enforces the CAP and BCAP Codes (the “U.K. Advertising Codes”), revised the U.K. Advertising Codes in October 2022 to prohibit gambling content that has a strong (opposed to particular) appeal to those under the age of 18 (“Under 18s”). The amendments limit the presence of celebrities, social media influencers, reality TV personalities from shows popular with Under 18s, and professional footballers (the British kind) in gambling advertisements. Additionally, the U.K. Advertising Codes prohibit anyone under the age of 25 from playing a significant role in a gambling advertisement.

In terms of potential enforcement from the ASA, if broadcasters fail to follow the BCAP Code, and do not comply with any ASA rulings requiring revisions or takedowns of the advertisement, the ASA can refer the issue to the United Kingdom’s Office of Communications, which can impose fines on broadcasters in amounts it determines to be appropriate and proportionate in the circumstances. For non-broadcaster online advertisements, the ASA will add their details to a publicly available forum to indicate their non-compliance with the U.K. Advertising Codes. Furthermore, the Commission can also impose fines for non-compliance with the Act in amounts proportionate to the breach.

Shortly after the amendments in October 2022, Entain brand Ladbrokes became the first Operator to violate the ASA’s prohibition on using Celebrities in gambling advertisements. The advertisement was a social media video post that featured three Premier League footballers. The ASA ordered that the Operator remove the Ad and prevent it from being disseminated any further.

Conversely, a few months later, the ASA determined that a television advertisement for Operator Paddy Power, which featured retired footballer Peter Crouch, did not violate the U.K. Advertising Codes because Crouch’s media activities, endorsements, former and current projects, and social media demographics had low appeal to Under 18’s.

In a more recent case, a radio ad for BetUK featured a retired minor-league footballer, Abedayo Akinfenwa. BetUK was of the view that since Akinfenwa was 41 years old, never played football at the highest level (the Premier League), and retired more than a year before the ad in question, he was unlikely to be popular with Under 18s. However, despite BetUK’s arguments, the ASA still determined Akinfenwa to have a strong appeal to Under 18s because of the popularity of his status gained from the FIFA series of video games. Akinfenwa was famous for his exceptional physical strength in real life as well as in the video game, leading some football fans to view him as a “cult hero” in the game. BetUK was ordered to remove the ad and prevent it from appearing again in its current form.

Despite these cases, the Commission has not imposed any fines in the United Kingdom for violating the laws and rules related to Celebrities in gambling advertising.

Netherlands

In October 2021, the Netherlands launched their regulated online gambling market, which is regulated by the Netherlands Gambling Authority (the “Kansspelautoriteit” or “KSA”). In June 2022, the Dutch government made amendments to the country’s advertising laws to prohibit Celebrities from appearing in gambling advertisements. Celebrities (or “role models” in the Netherlands) are defined as “all people who enjoy some form of fame (actor, directors, signers, or other visible role models within television, film, theatre, music, or entertainment industries), former or professional athletes, influencers, models”.

There have been a number of infractions by Operators in the Netherlands for breaching the rules of using Celebrities in gambling advertisements.

In October 2022, the KSA issued a statement that two Operators had been warned they were violating the celebrity gambling ban by using the voices of famous Dutch people in advertisements in a TV commercial and a podcast. No fines were issued as the Operators ceased using the voices in the advertisements.

In November 2022, the KSA issued a warning to the National Postcode Lottery (“NPL”), the country’s biggest charitable lottery, for using a “well-known” Dutch person in advertisements on TV and online for a “Deal or no Deal” lottery game. No fine was issued, but the KSA specified that the ban on Celebrities applies generally for risky games of chance such as online games of chance, but will only apply for less risky games of chance such as lotteries, if that Celebrity has substantial reach among minors and young adults.

In June 2024, it was reported that Operator JOI Gaming (“JOI”) was warned by the KSA that it had violated the Celebrity advertising ban. JOI used Celebrities to promote an Operator-sponsored in-person event (“the Event”) by having the Celebrities attend the Event and sign autographs, and also promote the event on social media through the Celebrity-owned and JOI-owned social media pages. The KSA stated that JOI could be fined up to €50,000 per day, up to a maximum of €250,000 if they did not immediately remove the social media posts from the JOI-owned social media pages, and for any repeated violation leading up to or during future editions of the Event, €200,000 per day up to a maximum of €1,000,000.

France

France has been licensing online sports betting Operators since May 2010, under the regulation of the National Gaming Authority (the “Autorité Nationale Des Jeux” or “ANJ”). In June 2023, the ANJ released guidelines and recommendations for sports partnerships and gambling, where the ANJ made non-binding recommendations to prohibit the association of an athlete who “belongs to the world of minors.” The ANJ stated that it would monitor whether an athlete’s audience exceeds 16 percent of the 13-17 age group on one or more social media platforms.

Shortly afterwards, the French government passed a law that prohibited social media influencers from creating paid content that markets online sports betting websites. Any influencer who violates this provision can be subject to a €300,000 fine and two years’ imprisonment. As of the date of writing, no athlete or influencer has been fined or imprisoned for advertising gambling services in France.

Belgium

Belgium has been regulating and licensing online gaming since 2011. In March 2023, it was announced that Belgium would ban all forms of gambling advertising that target Belgian residents, including through television, radio, and other audio-visual media, with the only exception being the country’s national lottery. The law explicitly mentions that the use of well-known personalities, such as athletes, actors or influencers, as well as voices of well-known persons, fictional characters, or imitations of a famous voice are prohibited. As of the date of writing, no penalties have been imposed on Operators in Belgium for violating the Celebrity advertising ban.

Italy

Italy has been regulating and licensing online gaming and sports gambling since 2006. In August 2018, the Italian government passed a law (the “Dignity Decree”) that banned all gambling advertising, including advertising at sporting or artistic events, television or radio broadcasting, and internet advertising, with the exception of national and local lotteries, as well as logos for responsible gambling. For any breaches of the Dignity Decree, fines can be imposed in the amount of 20 percent of the value of the advertising, with a minimum €50,000 fine for each violation.

While there is no specific mention of the use Celebrities or influencers in the Dignity Decree, there have been fines related to hosting online content creators that advertise or use gambling products or services. Some of the more notable fines in Italy have not been imposed against Operators but against social media platforms themselves. For example, Italy’s communications regulator, Autorità per le Garanzie nelle Comunicazioni (“AGCOM”) fined Google €2,250,000 because Google’s subsidiary, YouTube, had content creators that (i) had contractual relationships with YouTube as part of the YouTube Partner Program, (ii) were publishing gambling content, and (iii) had demographics that primarily reached Italian audiences. Other social media platforms like Meta, X, and Twitch have also been fined by AGCOM for similar reasons.

Conclusion

Regulated jurisdictions have varying approaches to Celebrities and gambling advertising, but the majority share a common objective: protecting vulnerable segments of the population, particularly those who are not of legal gambling age.

Determining which jurisdiction has had the best results depends on one’s view of how best to balance personal choice and social responsibility. Some may be of the view that restricting advertising altogether (e.g., Belgium) is the best policy when it comes to gambling advertisements. Others may think that penalizing the platforms themselves (e.g., Italy), having severe financial repercussions on Celebrities (e.g., France), or a self-regulatory model (e.g., the United Kingdom) are effective strategies to limit the impact of gambling advertisements on youth and vulnerable groups.

In the author’s view, Ontario’s approach of allowing athletes and Celebrities to participate in gambling advertisements to a certain extent is logical. Allowing professional athletes to appear in responsible gambling messages is advantageous to both (i) Operators, who can continue to build brand awareness through an athlete’s image as a responsible service, as well as through Celebrities and (ii) the general public who are made more aware of responsible gambling tools and strategies. Further, Ontario’s policy of allowing non-athlete Celebrities to participate in advertising as long as they do not appeal to minors is similar to other jurisdictions (e.g., the United States and the United Kingdom), which reinforces that it is a fair and balanced approach.

Ultimately, there are various strategies for how regulated jurisdictions oversee celebrity gambling advertising, and while no single approach may be the “best”, following how new market entrants develop their policies could offer valuable insights into which jurisdictions covered in this article are shaping the most effective and influential laws and regulations. This assumes that jurisdictions collect and publish data on the effectiveness of their approaches and how the incidence in their jurisdiction of, say, gambling among minors differs from that of others.