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The Netherlands, in an attempt to curb gambling addictions, has set the foundation for a ban on all gambling advertisements.
The Netherlands is about to see a major decline in gambling advertising. In an effort to curb gambling addiction, the local government is planning a ban on all untargeted advertising.
In October 2021, online gambling will be legalized in the Netherlands. Kansspelautoriteit has granted licenses to over 20 companies since then. The gambling industry has also increased its advertising, as operators look to increase the number of players.
The authorities took note and began to eliminate gambling advertising. As one of the first steps taken by lawmakers to regulate gambling advertising, they banned celebrities from appearing in ads. Celebrities, retired footballers in particular, used to be a common sight on gambling ads.
Understanding the ban on Untargeted Advertising
The protection of vulnerable populations is at the heart of this debate. Dutch authorities decided that in the case of gambling online, young adults between 18-24 years old should be considered vulnerable.
Franc Weerwind, Minister of Legal Protection, has developed regulations to protect vulnerable groups from untargeted advertisements.
Untargeted advertising is any type of advertisement that doesn’t target a specific audience. Ads on billboards, bus shelters and signposts are examples of untargeted advertising. Untargeted advertising can be seen by everyone, unlike online targeted advertising.
We are already noticing a shift of marketing budgets from our partners’ regular media channels, to their affiliate channel. This trend is expected to continue over the next few months. Especially after the new law comes into force in July, we will work even more intensively with most parties,” says Michael Fancher CCO of Onlinecasino.amsterdam.
The football industry is expected to be hit hard. You may have noticed an increase of gambling advertisements on uniforms and in stadiums. Online casinos and betting sites have invested a lot of money in advertising sporting events. This makes sense because sports fans will also be attracted to betting.
However, advertising at sporting events also falls under untargeted marketing. It means that football clubs and other organizations must find an alternative. The authorities will delay the ban for a few more years because of the huge sums of cash involved.
Sports teams will enjoy a sort of “grace period”, while the first set regulations for untargeted gambling advertisements are set to be implemented as early as July 20,23. The ban on sponsorship of events is already set for 2024. The ban will not affect teams until 2025. The two-year time frame is to allow teams to find suitable replacements.
Some examples show that fines could be quite high for companies who do not comply with the new regulations. JOI Gaming, Toto Online, and others were warned and then fined for targeting vulnerable groups with ads. According to reports, the fines could have been as high as EUR400,000.
Addiction to gambling and untargeted advertising
Does untargeted gambling advertisement increase gambling addiction?
Recent research shows the opposite. Recent research by the National Alcohol and Drug Information System indicates that gambling addiction has decreased over the past two years.
A recent study by Nielsen showed that gambling advertising spending had increased by up to EUR15 million. The increase in advertising has not necessarily led to an increase in gambling addiction.
This includes all ads, including those that are not targeted. This sudden increase in investment was largely due to the World Cup. It is not a secret that advertising during the World Cup can be very effective. Gambling addiction has continued to decline.
Most signs indicate that gambling ads and addiction to gambling are not necessarily linked.
Legislation is already in place for the protection of these age groups. Gambling advertisements will typically air after 10:00 pm.
What is the future of gambling advertising in the Netherlands
One thing is for sure: the gambling industry in the Netherlands will be severely affected by the new legislation. How can online gambling and casinos compensate for the ban on advertising?
Online ads have always been a viable option. Google advertising for gambling companies is still allowed. Email ads can still be used to target specific groups.
Currently, the Netherlands is the only country that has banned untargeted advertisements. Also, businesses can continue to focus on international events. Advertising in major international competitions like the World Cup and the Champions League is still legal. These ads will be seen by Dutch viewers via streaming or traditional broadcasts.
The ban on non-targeted advertising will have an adverse effect but it is not the end for gambling ads in the Netherlands. The message can still be delivered in a variety of ways, but a little rethinking is needed to make it effective.
