March Gambling Advertising and Sport: A Comparison of Regulated Markets

Transcription

1 Gambling Advertising and Sport: A Comparison of Regulated Markets 1

2 Contents Executive Summary Key Comparisons Introduction and a Background on Australia Australia Table EU Summary EU Jurisdictions Overview EU Tables Denmark France Italy Spain United Kingdom Appendix About GamblingCompliance About this Report and Disclaimer Authors Harry Ashton Luis Gil Pauline de Zeeuw Laurie Korpi Marina Pergher Richard Leather Editing Hannah Frost UK Office 91 Waterloo Road London SE1 8RT Tel: +44 (0) Fax: +44 (0) info@gamblingcompliance.com US Office 1250 Connecticut Avenue NW Suite 200 Washington DC Tel: Fax: info@gamblingcompliance.com Regional offices in Sydney, Taipei and Buenos Aires 1

3 Executive Summary The Australian Wagering Council has engaged GamblingCompliance to provide a report which compares Australia s current regulatory approach to gambling advertising in sport to the leading regulated online sports betting markets in Europe. The European jurisdictions examined are Denmark, France, Italy, Spain and the United Kingdom. All of these jurisdictions with the exception of the UK have recently regulated online gambling, and while the UK s regulatory regime for online betting came into effect in 2007, a move to a regulatory regime based on a point of consumption model is imminent. In this context, these jurisdictions provide a useful comparative platform for Australia s inquiry into gambling advertising and sport initiated by the Joint Select Committee on Gambling Reform. In addition, the European Commission has recently undertaken a industry wide consultation on online gambling and have proposed an action plan which will address the protection of minors and responsible gambling advertising. Australia is now examining possible further regulation of gambling advertising and its relationship to sport, while the industry is taking active steps to self-regulation. This follows a number of years of deregulation after the High Court s 2008 case involving Betfair and the State of Western Australia led to some liberalisation of cross border gambling advertising within Australia. The comparison of leading European jurisdictions aims to assist in Australia s examination of gambling advertising and its relationship to sport. Key Comparisons More Legal Online Gambling Channels Available in Europe Among the jurisdictions compared, all of them have more online gambling channels available than Australia with only sports betting and lotteries permitted online in Australia. Online in-play betting is allowed in all jurisdictions examined, and live odds and betting can be done directly through betting providers. In contrast, Australian operators cannot offer online in-play betting, although this can be done by telephone. Self-Regulation of Gambling Advertising Common in Europe While many of the rules relating to gambling advertising in Australia are found in state and territory legislation, there is a self-regulatory aspect to the Australian approach with the Advertising Standards Board making determination on advertisements as they relate to the Australian Association of National Advertisers (AANA) Code of Ethics. Similar self-regulatory approaches exist in the UK, Italy, France and in Spain under industry codes of conduct for advertising. Extent of Gambling Advertising as Prevalent in Europe The extent of gambling advertising in the European jurisdictions examined is in most instances at least as prevalent as Australia. In the UK for example, most Premier League football teams have a gambling sponsor and many have shirt sponsors. In the UK, 150m was spent on gambling advertising in In Italy, the gambling industry spent approximately 38m on TV advertising in 2010 which accounted for 55 percent of total advertising spending in that year according to data published by Nielsen. Shirt Sponsorship More Prominent in Europe Shirt sponsorship in the European football leagues is more prominent than in Australia, given the global popularity of the sport. Many Asian facing sports books such as 188Bet and 12Bet use shirt sponsorships to promote their brand in markets in Asia where online sports betting is hugely popular but unregulated. 188Bet are the betting partner of five top flight clubs including Chelsea and Liverpool while 12Bet sponsor Wigan Athletic and Newcastle. In Italy, the football series B championship is called Serie Bwin after the operator sponsored the entire league. Australian Operators Implementing Self-Regulation for In-Game Promotion Australia does not have explicit rules for in-game promotion or the integration of gambling into the commentary and coverage. Similarly, most European jurisdictions examined do not have explicit rules or regulations around this area. However, some have general requirements to differentiate advertisements from editorial content. Australian wagering operators are now implementing self-regulating strategies in line with a Council of Australian Governments Select Council of Gambling Reform directive from May Gambling Advertising rules for Minors Similar to Europe Like Australia, all the European jurisdictions examined have similar rules regarding gambling advertising and minors. Most jurisdictions explicitly forbid the targeting of children in gambling advertising. While Australia has an explicit exclusion under the Broadcasting Services Act for gambling advertising in sporting events during times where children are likely to be watching, the regulations in the European jurisdictions examined were generally silent on this issue, establishing only more general restrictions. Thus the practical effect of the regulation in these European jurisdictions is the same as Australia. Harm Minimisation Advertising rules for Gambling Similar to Europe Harm minimisation advertising rules for gambling exist, predominantly on a state and territory basis in Australia and while they vary between jurisdictions they include the need to: provide 2

4 warning messages, not explicitly or implicitly misrepresenting the probability of winning a prize, not give the impression that gambling is a reasonable strategy for financial betterment, be socially responsible and in some instances publish telephone numbers of counselling services in the advertisement. In Europe, Italy, France, Spain and the UK have similar harm minimisation advertising rules. Introduction and a Background on Australia In 2008 the High Court of Australia delivered a decision in a case between Betfair and Western Australia which led to some deregulation of Australia s advertising laws in relation to gambling. Since then, there has been a noticeable growth in the Australia wide advertising of online betting by Australian wagering operators. These wagering operators are able to offer online betting products in Australia under an exception to a ban online gambling under the Interactive Gambling Act of 2001 (IGA). Lotteries also fall under this exception along with a number of activities, but online casino, poker and slot machines are caught by the prohibition. Online in-play betting is not permitted under the IGA. In May 2011, the issue of adverting gambling and sport was brought into the spotlight when the Council of Australian Governments Select Council on Gambling Reform resolved that sports, broadcasters and betting agencies must reduce live betting odds promotions within a 12 month period. This followed public concerns that promotion, including sporting commentary, was becoming insidious in live sports coverage. incidental advertising such as during European football matches. In January 2013, the Australian Wagering Council issued a statement of intent to curb the promotion of live odds during sporting events in line with the recommendations of the COAG Select Council on Gambling Reform principles. This move of self-regulation preceded the referral of another matter to the JSCOGR. This report concerns the advertising and promotion of gambling services in sport. Against this backdrop, the Australian Wagering Council has engaged GamblingCompliance to compare leading European jurisdictions to Australia on the issue of gambling advertising and sport. In particular it aims to compare these jurisdictions making reference to the following categories which have been adapted from parts (a) to (e) of the terms of reference of the most recent JSCOGR inquiry: TV advertising rules relating to gambling; Extent of gambling sponsorship versus traditional forms of advertising; Extent of in-game promotion and the integration of gambling into commentary and coverage; Rules on exposing advertising to children during coverage; Harm minimisation advertising rules for gambling promotion in sport. The principles laid down by this meeting included the following requirements: Placement of responsible gambling messages in live odds promotions; Live odds promotions not be directed at children or be portrayed as a family activity; Promotions must be socially responsible and not misleading; Promotions must avoid exaggerated claims, association with alcohol, or with success or achievement. The issue was also addressed in two further government inquiries. Firstly, the Joint Select Committee on Gambling Reform (JSCOGR) published a report on December 8, 2011 on Interactive and Online Gambling Advertising. The inquiry report made recommendations to prohibit live odds promotions and advertising directed at children. In addition, it called on the development of a mandatory national code of conduct for advertising by wagering providers. The government responded to the recommendations and emphasised the need to address promotion of live odds during sporting events in line with COAG s May 2011 resolution. Further, the draft report of the review into the Interactive Gambling Act, which was published in mid-2012, called on more strict advertising provisions and measures clarifying accidental or 3

5 Australia TV advertising rules relating to gambling TV advertising rules relating to gambling are predominantly dealt with by state and territory legislation. TV advertising must also comply with the Commercial Television Industry Code of Practice which came into effect in January Section 6.14 deals with betting and gambling commercials. Television advertising also has a self-regulatory aspect and guidelines around this can be ascertained through decisions of the Advertising Standards Board (ASB). Determinations in relation to gambling advertisements are regularly dealt with by the ASB, however, only rarely are gambling operators found to be in breach of the voluntary Australian Association of National Advertisers (AANA) Code of Ethics. Operators are expected to comply with this code which came into effect on January 1, Part 7A of the Interactive Gambling Act of 2001 bans the publication or broadcast of an interactive gambling advertisement. Under the IGA, interactive gambling is prohibited subject to a number of exclusions, the most notable of which are wagering and lotteries. Extent of gambling sponsorship vs traditional forms of advertising Many of the major codes of sport in Australia have sponsorships which relate to gambling, although most of the clubs and codes involved have multiple sponsors most of which are not gambling related. In some cases clubs have up to 20 sponsors. There are also different levels of sponsorship and there are only limited instances where a gambling company is the leading sponsor. However sponsorship only forms part of the overall marketing strategy used by the gambling industry and this includes broadcast advertising on TV and radio, online pop ups on internet sites, brand ambassadors (e.g. Samuel L. Jackson; Shane Warne), inducements, direct and third party , loyalty programs, improved odds and money back guarantees. Marketing spend for gambling companies, if reported is generally only a total operational figure and rarely do companies report actual marketing spend per jurisdiction. Marketing spend for specific types of gambling advertising is generally not published due to its commercially sensitive nature. Extent of in-game promotion and the integration of gambling into commentary and coverage While in recent years in-game promotion of gambling has risen in its frequency and in some instances been integrated into the commentary of the sport, the industry is now taking steps to self-regulate on this issue. On May 27, 2011, the Council of Australian Governments (COAG) Select Council on Gambling Reform agreed that sports, broadcasters and betting agencies must reduce live betting odds promotions. In response, the Australian Wagering Council issued a statement of intent in January 2013 to bring the advertising standards promoting live odds in line with community expectations. The statement of intent provides that the promotion of live odds by commentators during live play will no longer occur and these live odds will be limited to before play, at pre-determined scheduled breaks, during unscheduled breaks and after play has concluded. These promotions will be clearly defined sponsorship segments delivered by persons other than commentators. The COAG Select Council on Gambling Reform and the AWC both iterated that thoroughbred, harness and greyhound racing be exempt from these measures due to their historic and fundamental connection with wagering. 4

6 Australia Rules on exposing advertising to children during coverage Under the Broadcasting Services Act at part 9, the ACMA must determine standards that are to be observed by commercial television broadcasting licensees. These must be written into the codes. The subsequent code, the Commercial Television Industry Code of Practice has an exemption on the restrictions against commercials relating to betting or gambling for sporting programs. Generally, betting and gambling ads cannot be broadcast in G classification periods Mondays to Fridays, not on weekends between 6.00am and 8.30am and 4.00pm and 7.30pm. The Joint Select Committee on Gambling Reform report on interactive and online gambling and gambling advertising recommended that the Broadcasting Services Act be amended to prohibit gambling advertising at times when children are likely to be watching. (Recommendation 19) There are also a number of provisions under state and territory law outlined in the appendix to this table. Harm minimisation advertising rules for gambling promotion in sport While there is no indication of any harm minimisation measures under the Commercial Television Industry Code of Practice in relation to gambling, the AANA Code of Ethics has a provision at 2.6, that advertising or marketing communications should not depict material contrary to prevailing community standards on health and safety. In December 2012, (case no. 0476/2012) a Sportsbet ad was found to be in breach of section 2.6 of the code on the issue of health and safety. While this is a selfregulatory code, Sportsbet discontinued the advertising, despite being in disagreement with the decision. There are also a number of state and territory requirements outlined in the appendix to this table. The measures include the need to: provide warning messages, not explicitly or implicitly misrepresenting the probability of winning a prize, not give the impression that gambling is a reasonable strategy for financial betterment, be socially responsible and in some instances publish telephone numbers of counselling services in the advertisement. 5

7 EU Summary At European level, EU Directives and case-law from the Court of Justice of the European Union (CJEU) have helped shape gambling advertising rules. The Audiovisual Media Services Directive regulates all forms of television broadcasts, on-demand content broadcasts as well as audiovisual advertising. These services are covered by this Directive when they are for a commercial purpose, destined for the general public, are broadcasted as a programme and are under the editorial responsibility of a media service provider. Gambling related decisions from the CJEU also defined some principles, such as authorising member states to prohibit crossborder gambling advertisements. In March 2011 the European Commission released a Green Paper on online gambling, initiating a consultation with stakeholders of the industry. Among the answers received by the commission, the UK Advertising Standards Authority manifested its support for self-regulation, as this is the system today in place in the country and which is understood to be effective. Other advertising bodies, such as the Association of Commercial Television in Europe (ACT), the Association of Television and Radio Sales Houses (EGTA) and the European Advertising Standards Alliance (EASA) have also supported self-regulatory bodies and the self-regulation of commercial advertisements as it has proven to be effective. The EGTA has also affirmed that over-restrictive advertising provisions will favour illegal gambling services and called for the authorisation of advertising and sponsorship for gambling operators. The commission released its answer to the Green Paper consultation on October 23, 2012, with a communication called Towards a comprehensive European framework for online gambling. This communication revealed the commission s action plan for the next two years. Among the key areas identified by the action plan, the commission aims to ensure the protection of minors as well as enhance responsible advertising. To achieve this last objective, the commission will release a Recommendation on Responsible Gambling Advertising, which will focus on promoting gambling in a socially responsible manner and providing consumers with essential information. This is planned for 2013, even though observers believe that the commission is not likely to achieve this objective during this year. Although Recommendations are not legally binding instruments such as Directives, the Recommendation on Responsible Gambling Advertising will influence all member states and, therefore, will be closely followed by all member states. EU Jurisdictions Overview A brief outline of the selected European online gambling markets is contained below. In Denmark the online gambling market was recently opened, with operators starting to offer their services from January 1, Licences are available for betting, including fixed-odds, betting exchanges, pool betting, in-play and micro betting, among other games such as casino games and poker. The Danish market is seen as fairly liberal, even though local licences are required and protective measures are in place, such as advertising, website and payment restrictions. In France online gambling licences are available for betting, including fixed-odds and mutual betting as well as in-play. Other licences are also available, such as racing and poker. While online lottery and bingo are kept under a monopoly, betting exchange and other forms of online casino games, including gaming machines and other card games, are prohibited in France. The French market opened in 2010 and it is based on local licensing with ring-fenced measures, including advertising, website and payment restrictions. In Italy the online gambling industry is extensively regulated, with betting licences available for pool and fixed-odds betting, as well as in-play for some operations. There are also online licences available for casino games, lottery, bingo, cash poker and skill games. More recently, online slot machines and betting on virtual events were implemented, while the regulation of betting exchanges is imminent. The Italian system is based on local licences and takes a restrictive stance against unlicensed operators using website blocking, advertising restrictions and other measures to ring fence its market. In Spain online gambling licences are available either at federal or state level, and although the federal level holds the largest market share, Madrid is also considered an important market. At the federal level, licences are available for betting, pool betting and fixed-odds betting. Authorised events range from sports, horse racing and social events. In-play is also permitted in some cases. Other online licences available include casino games, poker and bingo. Federal online gambling licences were firstly awarded in June 2012 and restrictive measures are in place, including advertising, website and payment blocking. In the United Kingdom the online gambling regime is one of the most liberal in the EU, with a relatively open market in place which authorises EEA and white-listed countries to advertise freely in the country. There are no website and payment restrictions. Online licences are available for betting including live, in-play, fixed-odds, pari-mutuel, betting exchanges or intermediaries. Other forms of online licences available include casino games and skill games. However, the British government is proposing to change its regulatory regime to a local licensing system. Furthermore, a point of consumption taxation system with a tax rate of 15 percent GGY may be implemented by December 2014, as well as protective measures. Nevertheless, it is thought by many commentators that the UK gambling industry will still be commercially viable. 6

8 Denmark TV advertising rules relating to gambling According to Section 59 of the Danish Gambling Act, in Denmark it is permitted to advertise gambling activities which are provided with a licence from a Danish authority or for activities which do not require a licence. This rule applies to TV advertising as well as any other types of media. Advertising gambling without a licence to offer gambling is expressly banned and punishable by fine or imprisonment. The Danish Gambling Act gives further guidance on the content of marketing campaigns at Section 36, which is available at the Appendix. This act does not provide further guidelines for advertising of gambling on TV or other media. Instead, each rule included in the Gambling Act must be interpreted in accordance with practice pursuant to the Danish Marketing Practices Act which is monitored by the Danish Consumer Ombudsman. Section 8 of the Danish Marketing Practices Act gives, among others, further guidance on marketing directed at children and young people and more generally on the material content of advertising. Moreover, Denmark has implemented parts of the Audiovisual Media Services Directive in the Radio and Television Broadcasting Act. This act is administered by the Danish Ministry of Culture and not by the Danish Gambling Authority and applies to gambling advertisement on TV and other media as well as other types of advertisements. Regarding the content of advertisements, according to Article 72 of this act, media service providers under Danish jurisdiction shall keep television advertising distinct from other parts of the program in question. In addition, the Danish Gambling Authority published in December 2012 guidelines on sales promotion measures for providers of gambling. Extent of gambling sponsorship vs traditional forms of advertising Extent of in-game promotion and the integration of gambling into commentary and coverage In Denmark, sponsorship is interpreted as being covered by the ban on advertising for unlicensed gambling operators as put in Section 59 of the Danish Gambling Act. According to Section 80 of the Radio and Television Broadcasting Act, sponsor programmes must be clearly identifiable on the TV programme. The act specifies at Section 81 that entering into sponsorship agreements must not affect the responsibility and editorial independence of a TV undertaking. According to Article 73 of the Radio and Television Broadcasting Act, television advertising may only occur in windows (in Danish reklameblokke ). This article further specifies that isolated advertising interrupting programs is permitted in transmissions of sports events, whenever there is a natural break. According to Article 75 of the same act, television advertising may only have duration of 12 minutes per broadcasting hour. Moreover, advertisements on television may occupy a maximum of 15 percent of the licensee s daily broadcasting time. Rules on exposing advertising to children during coverage According to Section 36 of the Danish Gambling Act 2010, the marketing of gambling activities shall not aim at the youth neither in its communication form nor in the choice of media. Section 8 of the Marketing Practices Act gives further guidance by stating that marketing directed at children and young people shall be designed with specific reference to their natural credulity and lack of experience and critical sense, as a result of which they are readily influenced and easy to impress. Harm minimisation advertising rules for gambling promotion in sport There are no harm minimisation advertising rules for gambling promotion in sport in Denmark. 7

9 France TV advertising rules relating to gambling Licensed operators are allowed to advertise their gambling activities on TV under certain conditions and limitations set out in Article 7 of the French Online Gambling Act This article gives further guidance on the content of such advertising messages, especially on the obligation to add warning messages and specific measures concerning minors. Furthermore, decisions from the French audiovisual regulation authority (CSA) on broadcasting conditions of authorised gambling advertising give recommendations and directions to advertising gambling on TV. Finally, at the request of the CSA, charters of good conduct were signed between TV advertisers among others forms of media advertisers in January Extent of gambling sponsorship vs traditional forms of advertising According to the CSA report from October 2011 on the consequences of gambling advertising, since the partial opening of the French online gambling market the CSA has witnessed a clear evolution of certain sports programmes on TV but especially on radio, with generally an increase use of sponsorship. The content of certain programs dedicated to sports have therefore sometimes seen a denaturation. From June 2010 (the opening of the online gambling market in France) to May 2011 a total of 265m was invested in online gambling advertisements. The majority of advertising investments was made on online sports betting and then online poker with, respectively, 62 percent and 38 percent of the total of advertising expenditures for online gambling activities for the period from June 2010 to May Advertising was concentrated on television (44 percent of gross advertising expenditure in 2010 for an amount of 86m) and internet (39 percent market share, for a total of 76m). Extent of in-game promotion and the integration of gambling into commentary and coverage According to the CSA decisions, since the partial liberalisation of the online gambling market in France, the content of certain programmes dedicated to sports have sometimes seen a denaturation. Some of these programmes have tended to promote sports betting activities encouraging the public to bet, accompanied by references to earnings expectations. Rules on exposing advertising to children during coverage Article 7 of the French Online Gambling Law states that any advertisement from a legal operator shall be prohibited on TV programs presented for minors. It is also forbidden to advertise less than 30 minutes before and after a TV program presented as for minors. Harm minimisation advertising rules for gambling promotion in sport According to Article 7 of the French Online Gambling Law, advertising on TV shall be accompanied by a warning message against gambling addiction, and a message referring to the information and assistance system also planned in the law. 8

10 Italy TV advertising rules relating to gambling Italy s main gambling advertising legislation includes Law no. 401 of December 13, 1989, which at Article 4 rules that unlicensed operators are not allowed to advertise in the country. However, it was not until the Balduzzi Decree (Decree Law no. 158 of September 13, 2012, converted into law by Law no. 189 of November 8, 2012) was approved, that rules for licensed gambling operators were implemented. Since January 1, 2013, TV programmes as well as radio, theatre and films which are addressed to minors cannot have gambling advertisements within a 30 minute period before and after the transmission. Extent of gambling sponsorship vs traditional forms of advertising Extent of in-game promotion and the integration of gambling into commentary and coverage According to data published by Nielsen, during 2010 the Italian gambling industry spent approximately 38m in TV advertisements. This amount represented 55 percent of the total spending in advertisements during that year. 1 The football series B championship in Italy has as its main sponsor Bwin, with a Serie Bwin games named after the operator. Football clubs from series A also have at least one gambling operators as sponsor with Eurobet, for example, being the major sponsor of Palermo and having the logo into the uniform. There is no clear restriction to live odds promotion in Italy. Nevertheless, recent legislative developments can influence such activity. Article 7(4) of the Balduzzi Decree, which entered into force on January 1, 2013, determines that gambling advertisements cannot encourage players to gamble or exalt gambling. However, this rule has not being well received by the industry, as it is very broad and can potentially include any form of advertising. Clarification of the scope of this restriction was requested to the gambling authority AAMS, Agenzia delle Dogane e dei Monopoli - in the form of further guidelines to expressly define this rule. Up to this moment it is not clear which interpretation AAMS will give to this requirement. Rules on exposing advertising to children during coverage Harm minimisation advertising rules for gambling promotion in sport The only restriction related to the protection of children and the broadcasting of gambling advertisements is that mentioned above, the prohibition on the broadcast of gambling adverts within 30 minutes before and after the transmission of programmes in TV, radio, films and theatre which are addressed to minors. The following general rules should also be observed. Any kind of gambling advertisements addressing minors is prohibited. The presence of minors in advertisements is restricted as well as their access to gambling venues. Minors are those persons below 18 years of age. According to the legislation that entered into force in January 2013, the Ministry of Finance should issue a decree within six months introducing the requirement for technical solution to be implemented to block minors automatically from gambling, as well as problem gamblers. Since new legislation came into force on January 1, 2013, warning messages are required to be shown in gambling advertisements. These include minors restriction to gamble, licence concession information, message that gambling may become addictive and the gambling authority logo. Payout s percentage should be clearly informed by either directing players to access the gambling authority site as well as by clearly stating on the operator s website or at betting shops. In addition, gambling advertisements are also not allowed to encourage or exalt players to gamble. Fines for non-observance of gambling advertisement rules can be up to 500,000 and these are applicable to both operators and media companies (Article 7(6)). 1 EGTA, The Association of Television and Radio Sales Houses submission to the European Commission Green Paper, July

11 Spain TV advertising rules relating to gambling The regulation of advertising practices in the Spanish media are controlled and regulated by several sets of regulation. The two most important laws are Law no. 34/1988 which establishes the legal framework for advertising activities in the country and Law no. 7/2010 which regulates the transmission of audio-visual communications and also provides guidelines for advertising practices carried out through audiovisual channels (television and radio). In addition, in the case of gambling operations, the industry has also adopted a self-regulation code denominated Code of Conduct for Commercial Communication of Gambling Activities. Although this code is not compulsory, online gambling operators and several media providers have agreed to be regulated by it. Additionally, Law no. 13/2011, which defines the legal framework for online gambling operations, has established that any form of advertising of gambling activities can only be offered by licensed gambling operators who have been authorised to advertise their activities. This authorisation must be clear and precise. In practice this advertising authorisation has been included into the resolution that grants the gambling licence. It should be noted that due to its administrative division, Spanish legislation has authorised local authorities to regulate gambling activities at the regional or state level, in which case some additional rules regarding advertising may be applicable especially regarding land-based operations. Extent of gambling sponsorship vs traditional forms of advertising Extent of in-game promotion and the integration of gambling into commentary and coverage Rules on exposing advertising to children during coverage Decree no. 1614/2011 determines that until Article 7 of Law no. 13/2011 is officially regulated, the control and operation of gambling advertisements will be regulated by the general statute for advertising services contained into Law no. 34/1988, among others. In addition, the Code of Conduct of Commercial Communications of Gambling Activities has established that sponsorship agreements are subject to the same conditions established by Law no. 7/2010 for advertising of gambling services. In practice, sponsorship agreements have been permitted and no control has been imposed in this regard to licensed companies in the country, as long as the advertising regulation has been followed. However, it should be noted that this situation would likely change once Article 7 of Law no. 13/2011, which deals with advertising and sponsorship of gambling activities, is regulated. Up to March 2013, the Spanish gambling regulator has not yet established a timeline for the implementation of this regulation. Advertising of gambling activities during a live event is permitted, regardless of the time of broadcasting and the channel. Although no regulation has established specific restrictions, Article 14(3) of Law no. 7/2010 establishes that the transmission of advertising in a different format compared to traditional advertising which can lead to confusion of the public regarding its advertising nature must be clearly clarified and indicate that this activity is an additional form of advertising. It should be noted that this is a general rule for advertising and not exclusive of gambling advertisements. According to Article 7(2) of Law no. 7/2010 which regulates the transmission of audio-visual communication in Spain, broadcasting of programs dedicated exclusively to gambling activities can only be available between 1am and 5am. Based on this rule, the Code of Conduct of Commercial Communications of Gambling Activities has established that advertising of gambling services including casino games, fixed-odds betting on sports and horse racing, can only be broadcast between 22:00 and 06:00. Meanwhile, advertising of bingo games, pool betting and other forms of betting can be broadcasted at any given time outside of the times considered of reinforced protection under the terms of Law no. 7/2010, which establishes certain times where minors are more likely to be watching. However, it should be noted that none of these restrictions apply to advertising of betting activities carried out during the transmission of live events or their re-run. In this regard neither general nor specific gambling regulations have included any restriction in order to protect minors. Harm minimisation advertising rules for gambling promotion in sport The Code of Conduct of Commercial Communications of Gambling Activities contains a principle of responsible gambling, which requires that the advertising of gambling activities must not include advertising which promotes the addictive practice of gambling. In addition, advertising of gambling activities cannot be displayed as a mechanism to avoid or escape personal, professional and economic problems among other prohibitions. Gambling advertisements must include a message regarding the prevention of problem gambling adequate to the service that is being used. 10

12 United Kingdom TV advertising rules relating to gambling The main TV advertising rules related to gambling are the UK Code of Broadcast Advertising (BCAP), the Gambling Act 2005 and the Gambling Industry Code for Socially Responsible Advertising (Gambling Industry Code). The main sections of these are available on the Appendix of this report. The Gambling Industry Code determines that all new games, excluding those which were legally offered before September 1, 2007, such as bingo, must not be advertised on television before 9pm. The code also explains that sponsorships are also considered as advertising and, therefore, gambling operators cannot sponsor any television programme that is broadcasted before 9pm. Extent of gambling sponsorship vs traditional forms of advertising The Gambling Industry Code rules that sports betting is excluded from the general ban of the sponsorship restriction on television programmes before 9pm. This exception is based on the direct relationship that exists between sports betting and the broadcast and that banning it would be unreasonable. However, sports events included in this exception do not extend to ice-skating and quizzes, among others. According to written evidence submitted by the Advertising Association in July 2011 to the UK Parliament, in 2010 advertising expenditure in the UK amounted to 15.6bn. This same year, gambling advertisement expenditure reached 150m. From these, sports gambling reached 48m, while football pools reached 4m. In major teams of the Football Premier League, at least one sponsor is a gambling operator. Cricket and rugby teams in the UK, however, have almost no sponsorship from gambling operators. Extent of in-game promotion and the integration of gambling into commentary and coverage Even though there is no clear restriction of in-game promotion of gambling in the UK, the Advertising Standards Agency conducted a survey in 2010 and found that 96.1 percent of advertisements were compliant with British regulation. Of note, the definition of advertising in the Gambling Act includes the promotion and integration of gambling into sports commentaries and coverage. The act rules that a person is advertising gambling when doing anything to encourage one or more persons to take advantage of gambling facilities or with the aim to increase the use of gambling facilities he brings information about these facilities to one or more persons. A person will be bringing gambling facilities into attention if he has entered into agreements such as sponsorship or brand-sharing. The BCAP also has a few important rules that may interfere with the promotion of gambling by games commentators. Rule 2.1 determines that advertisements should be clearly distinguished from editorial content. The in-game promotion should be easily recognised by the audience as advertisement. This kind of promotion must also observe that gambling advertisements cannot infer pressure to gamble. Within UK betting shops there are television channels which show sports betting containing in-game type promotion. Rule 17.4 of BCAP notes that an exemption exists for the prohibition of advertising in the workplace regarding advertisements for gambling. Ofcom, the independent regulator and competition authority for the UK communications industry, has informed GamblingCompliance that as of March 7, 2013 it has not received any complaints related to in-game promotion. Ofcom also explained that its rules permit commercial references in programmes where they are editorially justified, and do not promote or give undue prominence to the product, service or trade mark and noted that that gambling services are banned from product placement. In addition, Ofcom confirmed that it would examine references to in-play betting during sports coverage very carefully, especially if a particular brand name was mentioned. 11

13 United Kingdom Rules on exposing advertising to children during coverage The BCAP rules that advertisements must not contain anything that could result in any physical, mental, moral or social harm to those aged below 18 years of age. Advertisements should also not exploit susceptibilities, aspirations, credulity, inexperience or lack of knowledge of those aged less than 18 years, as well as being not related to youth culture and using a person who is or seems to be below 25 years of age in a gambling advertisement. The Gambling Industry Code determines that sport sponsorships should not include any gambling advertisement in material that is designed for children, including the use of logos on children sports shirts or other merchandising. Harm minimisation advertising rules for gambling promotion in sport The BCAP has not created an obligation for operators to have an educational or warning message in gambling advertisements, as it was sceptical about the effectiveness of such messaging. The Gambling Industry Code sets out particular gambling requirements and should be used as a guide for operators that decide to include educational messages in their advertisements. It affirms that the best form to carry out an educational message is to include the Gamble Aware website link ( Advertisements in television broadcasts should also include this educational message. Further measures described in the BCAP are available on the Appendix. 12

14 Appendix The following appendix is to be read in conjunction with the substantive report prepared by GamblingCompliance for the Australian Wagering Council on Gambling Advertising and Sport. Australia Notes on TV advertising rules relating to gambling Section 6.14 of the Commercial Television Industry Code of Practice deals with betting or gambling commercials. This section provides that except for a commercial broadcast in a news, current affairs or sporting programme, a betting or gambling commercial must not be broadcast during G classification periods Monday to Friday nor on weekends between 6.00am and 8.30am and 4.00pm and 7.30pm. This rule does not apply to commercials relating to government lotteries, lotto keno or contests and also commercials relating to entertainment or dining facilities at places where betting or gambling takes place. Tourism commercials may incidentally depict betting or gambling on the basis that betting or gambling is not directly promoted. The code is registered by the Australian Communications and Media Authority (ACMA) who are responsible for regulating broadcasting services in Australia among other responsibilities. The code is developed in accordance with section 123 of the Broadcasting Services Act of Notes on extent of gambling sponsorship vs traditional forms of advertising Despite comments on the opacity of marketing spending, some indication can be gleaned by the following information: According to Warren Hebard who is the manager of marketing and communications for TomWaterhouse.com, marketing spend was A$20m per year in mid Sportingbet, in their 2012 Annual Report, state that the group spends more than 30 percent of net gaming revenue on marketing and reviews. In 2010, Centrebet declared actual marketing costs of A$11.9m. In a submission to the Productivity Commission, the Australian Internet Bookmakers Association analysed the advertising spend by Australian online providers in January and February Overall, 10 bookmakers spent between A$132,000 and A$1.64m over the space of the two months, but the unlicensed PokerStars out spent all others with a total spend of A$2.54m. Notes on extent of in-game promotion and the integration of gambling into commentary and coverage The principles laid down by the COAG Select Council on Gambling Reform on May 27, 2011 include the following requirements: Placement of responsible gambling messages in live odds promotions; Live odds promotions not be directed at children or be portrayed as a family activity; Promotions must be socially responsible and not misleading; Promotions must avoid exaggerated claims, association with alcohol, or with success or achievement. Notes on rules on exposing advertising to children during coverage Some examples of state and territory based initiatives include: In the ACT, under the Gambling and Racing Control (Code of Practice) Regulation of 2002 there are restrictions on showing people under 25 years old gambling and encouraging people under 18 to gamble or targets them. In NSW, under the Racing Administration Act and subsequent regulations, gambling advertising must not depict children gambling. In the Northern Territory, under the Code of Practice for Responsible Gambling of 2003, advertising cannot implicitly or explicitly directed at minors or portray minors participating in gambling. In Queensland, under the Responsible Gambling Code of Practice, operators must ensure that advertising or promotion is not implicitly or explicitly directed at minors. In South Australia there is currently a review in relation to sports betting advertising conducted by the Independent Gambling Authority. There is also a requirement under the Advertising Codes of Practice that gambling advertising must not be directed at minors or portray minors participating in gambling activities. In Tasmania, according to the Responsible Gambling Mandatory Code of Practice, the advertising of gambling products must not encourage or target people under the age of 18 to gamble. It must not show people under 25 years of age in gambling advertising unless their appearance is incidental and they are not located in a venue. Notes on harm minimisation advertising rules for gambling promotion in sport Some examples of state and territory based initiatives include: The ACT Gambling and Racing Control Code of Practice requires a licensee to publish the name and telephone number of an approved gambling counselling service in the ACT in conjunction with any advertising material. Under the Racing Administration Regulation of 2012, advertising gambling must not suggest that winning will be a definite outcome, or that participation is likely to improve a person s financial prospects. The Northern Territory Code of Practice for Responsible Gambling requires that ads must not explicitly or implicitly misrepresent the probability of winning a prize; give the impression that gambling is a reasonable strategy for financial betterment; and must 13

15 contain a gambling warning signage in a clearly visible manner e.eg gamble responsibly. The Responsible Gambling Code of Practice in Queensland requires that gambling advertising does not implicitly or explicitly misrepresent the probability of winning a prize, does not give the impression that gambling is a reasonable strategy for financial betterment, does not include misleading statements about odds, prizes or chances of winning and, where appropriate, has positive responsible gambling messages. Under the South Australian Mandatory Advertising Codes of Practice operators must ensure that advertising is socially responsible and does not mislead or deceive the consumer. It must include a warning message in the language prescribed in the code. It must not make claims relating to winning which are not based on fact, among others. In Tasmania, the Responsible Gambling Mandatory Code of Practice requires that advertising be socially responsible and consistent with the expectation that gambling would be conducted responsibly so as to minimise harm. It requires that the advertisement cannot be misleading or deceptive in relation to odds or the probability of winning a prize, does not give the impression that gambling is a reasonable strategy for financial betterment, among other measures. European Union The Audiovisual Media Services Directive, Directive 2010/13/EU This Directive regulates the entire audiovisual sector in the European Union member states. This directive has a number of definitions and rules which are applicable to the five European jurisdictions analysed in this report. The Audiovisual Media Services Directive defines that the law of the place where the transmission is originated is applicable. Therefore, cross border broadcasts of in-play odds of a sports betting operator by a broadcaster may be in contradiction with national gambling laws of other EU states. The definition of sponsorship helps differentiate it from product placement, which is understood to be the referencing to a product within the broadcasted programme. Sponsorship, however, is not included in the action taking place in the programme. Of note, sponsors are not allowed to have influence over the content or the schedule of the programme. Article Audiovisual media services or programmes that are sponsored shall meet the following requirements: (a) their content and, in the case of television broadcasting, their scheduling shall in no circumstances be influenced in such a way as to affect the responsibility and editorial independence of the media service provider; (b) they shall not directly encourage the purchase or rental of goods or services, in particular by making special promotional references to those goods or services; (c) viewers shall be clearly informed of the existence of a sponsorship agreement. Sponsored programmes shall be clearly identified as such by the name, logo and/or any other symbol of the sponsor such as a reference to its product(s) or service(s) or a distinctive sign thereof in an appropriate way for programmes at the beginning, during and/or at the end of the programmes. 2. Audiovisual media services or programmes shall not be sponsored by undertakings whose principal activity is the manufacture or sale of cigarettes and other tobacco products. 3. The sponsorship of audiovisual media services or programmes by undertakings whose activities include the manufacture or sale of medicinal products and medical treatment may promote the name or the image of the undertaking, but shall not promote specific medicinal products or medical treatments available only on prescription in the Member State within whose jurisdiction the media service provider falls. 4. News and current affairs programmes shall not be sponsored. Member States may choose to prohibit the showing of a sponsorship logo during children s programmes, documentaries and religious programmes. Product placement is regulated as follows. Article Product placement shall be prohibited. 3. By way of derogation from paragraph 2, product placement shall be admissible in the following cases unless a Member State decides otherwise: (a) in cinematographic works, films and series made for audiovisual media services, sports programmes and light entertainment programmes; (b) where there is no payment but only the provision of certain goods or services free of charge, such as production props and prizes, with a view to their inclusion in a programme. The derogation provided for in point (a) shall not apply to children s programmes. Programmes that contain product placement shall meet at least all of the following requirements: (a) their content and, in the case of television broadcasting, their scheduling shall in no circumstances be influenced in such a way as to affect the responsibility and editorial independence of the media service provider; (b) they shall not directly encourage the purchase or rental of goods or services, in particular by making special promotional references to those goods or services; (c) they shall not give undue prominence to the product in question; (d) viewers shall be clearly informed of the existence of product placement. Programmes containing product placement shall be appropriately identified at the start and the end of the programme, and when a programme resumes after an advertising break, in order to avoid any 14

16 confusion on the part of the viewer. By way of exception, Member States may choose to waive the requirements set out in point (d) provided that the programme in question has neither been produced nor commissioned by the media service provider itself or a company affiliated to the media service provider. Regarding television advertisements, the Directive has also a number of important rules. It restricts isolated advertising creating an exception to sports events while also restricting the percentage of the programme that can be used for advertising purposes. Article Television advertising and teleshopping shall be readily recognisable and distinguishable from editorial content. Without prejudice to the use of new advertising techniques, television advertising and teleshopping shall be kept quite distinct from other parts of the programme by optical and/or acoustic and/or spatial means. 2. Isolated advertising and teleshopping spots, other than in transmissions of sports events, shall remain the exception. Article The proportion of television advertising spots and teleshopping spots within a given clock hour shall not exceed 20 %. 2. Paragraph 1 shall not apply to announcements made by the broadcaster in connection with its own programmes and ancillary products directly derived from those programmes, sponsorship announcements and product placements. Unfair Commercial Practices Directive, Directive 2005/29/EC Annex I of this Directive has a list of practices that are considered unfair in all circumstances. Among these, claiming that products are able to facilitate winning in games of chance is considered as an unfair practice. Denmark Notes on TV advertising rules relating to gambling According to the Danish Gambling Authority ( communication of March 5, 2013 with GamblingCompliance) Denmark has no tradition of limiting the possibility of advertising. Instead, we focus on the material content of the advertising. A translation of the Danish Gambling Act provided by the Danish Gambling Authority is available here. Section 59(5) iv) of the Danish Gambling Act 2010 states: The penalty of a fine shall, unless a higher penalty is incurred in pursuance of other legislation, be imposed on anyone who intentionally or by gross negligence: [...] iv) advertise for gambling providers that does not hold a licence under this Act; Section 36(1) of the Danish Gambling Act 2010 states: The marketing of gambling activities: i) shall present the chance of winning in a correct and balanced manner that does not create an impression that the chance of winning is greater than it actually is; ii) shall focus on gambling as a form of entertainment; iii) shall not aim at children and young people under the age of 18, neither in its communication form nor in the choice of media; iv) shall not by using well-known personalities suggest that participation in gambling activities has contributed to their success when that is not true; and v) shall not have a content that conveys the impression that participation in gambling activities helps provide a solution to financial problems or improves the player s social acceptance. The Radio and Television Broadcasting Act is available in English on the WIPO website. Article 72 of the Radio and Television Broadcasting Act states: Advertisements must be clearly identifiable as such, their content and presentation distinguishing them from regular programmes. A translation of the guidelines on sales promotion measures for providers of gambling published is provided by the Danish Gambling Authority here. Notes on extent of gambling sponsorship vs traditional forms of advertising According to Article 79 of the Radio and Television Broadcasting Act, programme sponsorship is defined as any contribution, direct or indirect, to the financing of radio or television programmes, including teletext pages, and on-demand audiovisual media services from a natural or legal person not engaged in the broadcasting or production of radio or television programmes or on-demand audiovisual media services, films, phonograms, etc., with a view to promoting the name, trademark (logo), image, activities or products of that person. According to Article 80 of the Radio and Television Broadcasting Act, sponsored programmes shall be clearly identifiable as such by appropriate credits appearing at the beginning or end, or both, of the programme, showing the sponsor s name, trademark (logo) or another symbol, including a reference to the sponsor s product, service or a distinctive sign thereof. Such credits may not appear in the programme itself. On teletext the information mentioned in the first sentence shall appear on the individual pages sponsored. According to Article 81 of the Radio and Television Broadcasting Act: The content and scheduling of a sponsored programme shall not be influenced by the sponsor in such a way as to affect the responsibility and editorial independence of the radio or television undertaking. 15

17 (2) Similarly, the content of programmes and programming may not be influenced by companies etc. with which the radio or television undertaking has entered into commercial agreements linked to the programme services such that it affects the radio or television undertaking s responsibility and editorial independence. Notes on extent of in-game promotion and the integration of gambling into commentary and coverage According to Article 73 of the Radio and Television Broadcasting Act: Advertisements on television shall be transmitted only in blocks to be inserted between the programmes. This does not apply to teletext advertisements. (2) Advertisement blocks may, however, interrupt sports programmes where breaks occur, or programmes that are transmissions of performances or events where there are intervals for the audience. Scheduling of such advertisement blocks shall take into account the programme s natural breaks, duration and nature in such a way that the integrity and value of the programme shall not be compromised nor the owner s rights infringed. Article 75 of the Radio and Television Broadcasting Act specifies: Advertisements on radio and television may occupy a maximum of 15 per cent of the individual licensee s daily broadcasting time, and a maximum of 12 minutes per hour. Notes on rules on exposing advertising to children during coverage According to Section 36(1) of the Danish Gambling Act 2010: The marketing of gambling activities: [ ] iii) shall not aim at children and young people under the age of 18, neither in its communication form nor in the choice of media; An unofficial translation of the Danish Marketing Practices Act, provided by the Danish Consumer Ombudsman, is available on its official website. According to section 8 of the Danish Marketing Practices Act: Marketing directed at children and young people shall be designed with specific reference to their natural credulity and lack of experience and critical sense, as a result of which they are readily influenced and easy to impress. (2) Marketing directed at children and young people must not directly or indirectly incite them to violence, use of intoxicants (including alcohol) or other dangerous or inconsiderate behaviour, nor make unwarrantable use of violence, fear or superstition in order to influence them. France Notes on TV advertising rules relating to gambling Licensed operators are allowed to advertise their gambling activities on TV under certain conditions and limitations set out in Article 7 of the French Online Gambling Act Until a licence has been issued, an online operator may not advertise on the French territory. The French Online Gambling Act (Law no of May 2010) is available here in French. Article 7 of the French Online Gambling Act 2010 provides that any advertisement from a legal operator shall be: 1) Accompanied by a warning message against gambling addiction, and a message referring to the information and assistance system planned under Section 29; 2) Prohibited in publications aimed at minors; 3) Prohibited on audiovisual programmes presented as for minors; 4) Prohibited in online programmes aimed at minors; 5) Prohibited in movie theatres during the broadcast of works available to minors. In French as follows: Toute communication commerciale en faveur d un opérateur de jeux d argent et de hasard légalement autorisé est : 1 Assortie d un message de mise en garde contre le jeu excessif ou pathologique, ainsi que d un message faisant référence au système d information et d assistance prévu à l article 29 ; 2 Interdite dans les publications à destination des mineurs ; 3 Interdite sur les services de communication audiovisuelle et dans les programmes de communication audiovisuelle, présentés comme s adressant aux mineurs au sens de l article 15 de la loi n du 30 septembre 1986 relative à la liberté de communication ; 4 Interdite dans les services de communication au public en ligne à destination des mineurs; 5 Interdite dans les salles de spectacles cinématographiques lors de la diffusion d œuvres accessibles aux mineurs. Un décret précise les modalités d application des 1, 2, 4 et 5. Une délibération du Conseil supérieur de l audiovisuel précise les conditions de diffusion, par les services de communication audiovisuelle, des communications commerciales mentionnées au premier alinéa, notamment les modalités d application du 3. The advertiser of unlicensed gambling activities is liable for a fine according to Article 9 of the French Online Gambling Act The article reads in French as follows: Quiconque émet ou diffuse, par quelque moyen que ce soit, une communication commerciale non conforme aux dispositions du deuxième alinéa de l article 5 et de l article 7 est puni d une amende de EUR. Le tribunal peut porter le montant de l amende au quadruple du montant des dépenses publicitaires consacrées à l opération illégale. An unlicensed gambling operator advertising its activities in France is also liable for a fine according to Article 57 of the French Online Gambling Act The article reads in French as follows: 16

18 Quiconque fait de la publicité, par quelque moyen que ce soit, en faveur d un site de paris ou de jeux d argent et de hasard non autorisé en vertu d un droit exclusif ou de l agrément prévu à l article 21 est puni d une amende de Le tribunal peut porter le montant de l amende au quadruple du montant des dépenses publicitaires consacrées à l activité illégale. Ces peines sont également encourues par quiconque a, par quelque moyen que ce soit, diffusé au public, aux fins de promouvoir des sites de jeux en ligne ne disposant pas de l agrément prévu à l article 21, les cotes et rapports proposés par ces sites non autorisés. Further rules on advertising of gambling have been set up in the Decree on Commercial Communications Regulation no of June 8, The decree, among others, gives further guidance on warning messages which must appear in each advertisement on TV and other media. The decree is available here in French. Article 1, in particular, applies to TV advertising and lay down the rules regarding warning messages in gambling advertising. It reads in French as follows: Toute communication commerciale en faveur d un opérateur de jeux d argent et de hasard est assortie de l un des messages de mise en garde suivants : «Jouer comporte des risques : endettement, dépendance... Appelez le (appel non surtaxé).» «Jouer comporte des risques : isolement, endettement... Appelez le (appel non surtaxé).» «Jouer comporte des risques : dépendance, isolement... Appelez le (appel non surtaxé).» Ces messages sont présentés de manière accessible et aisément lisible, respectueuse de leur vocation de santé publique et clairement distinguable du message publicitaire ou promotionnel qui les accompagne. Les messages de mise en garde susmentionnés apparaissent en alternance sur chaque support publicitaire ou promotionnel. Furthermore, decisions from the French audiovisual regulation authority (CSA) on broadcasting conditions of authorised gambling advertising (Decision no of May 18, 2010, Decision no of April 27, 2011, Decision no of January 22, 2013) give recommendations and directions to advertising gambling on TV. The decision from the French audiovisual regulation authority (CSA) no of May 18, 2010 on broadcasting conditions of authorised gambling advertising is available here in French. The decision from the French audiovisual regulation authority (CSA) no of April 27, 2011 on broadcasting conditions of authorised gambling advertising is available here in French. The decision from the French audiovisual regulation authority (CSA) no of January 22, 2013 on broadcasting conditions of authorised gambling advertising is available here in French. The charters of good conduct signed between TV advertisers in January 2011 can be found in French in the Appendix of the CSA report on the consequences of gambling advertising from October 2011 available here. Notes on extent of gambling sponsorship vs traditional forms of advertising According to the CSA report from October 2011 on the consequences of gambling advertising, available here in French, the opening of the online gambling market in France has given rise to a first wave of very high advertising investment in June 2010 ( 76m) followed by another jump in September ( 62m) followed by a gradual decrease until March Finally, after another jump in April 2011, online gambling advertising spendings slowly reduced in the next three months. The report reads as follows in French: L ouverture des jeux en ligne a donne lieu à une première vague d investissements publicitaires très forte en juin 2010 (73M bruts) suivie d une relance en septembre (62M bruts) puis d une diminution graduelle de la pression publicitaire jusqu en mars Enfin, après un sursaut en avril 2011, les investissements publicitaires en faveur des jeux en ligne ont fortement diminué les trois mois suivants. The report from the CSA adds that in total, 196m were invested on advertising in 2010, of which 181m were over the seven months after the opening of the market (from June to December). From June 2010 to May 2011, a total of 265m was invested on online gambling advertisements. The report reads as follows in French: Au total, 196M bruts on été investis en publicité en 2010, dont 181M au cours des sept mois suivant l ouverture à la concurrence (juin - décembre). Sur une année glissante complète, de juin 2010 à mai 2011, c est un total de 265M bruts qui a été investi en faveur des jeux en ligne. The report also specifies that the majority of advertising expenditure was made for online sports betting and online poker with, respectively, 62 and 38 percent of the total expenditure on advertising for online gambling activities for the period from June 2010 to May The report reads as follows in French: La majorité des investissements publicitaires pour les jeux en ligne est effectuée en faveur des paris en ligne, devant le poker, soit respectivement 62% et 38% pour la periode juin 2010 à mai Finally, the report shows that advertising expenditures for online gambling activities were concentrated on television (44 percent of gross advertising expenditure in 2010 for an amount of 17

19 86m) and internet (39 percent market share, for a total of 76m). The report reads as follows in French: Les dépenses publicitaires pour les jeux en ligne sont concentrées sur la television (44% des dépenses publicitaires brutes en 2010 pour un montant de 86M ) et internet (39% de part de marché, pour un montant de 76M bruts). According to the CSA decisions, when sports betting is mentioned in a programme sponsored by a sports betting operator, a reference to the odd of an event may be considered as advertising for the sponsor of the TV program. In this situation, the CSA recommends that an average odd from different operators is mentioned or, alternatively, multiple odds also from different operators could be the method chosen to mention odds. In French, from CSA decision no of January 22, 2013: Lorsqu un pari sportif ou hippique est évoqué dans une émission parrainée par un opérateur de paris, faire référence à «la» cote d une épreuve ou d une course peut constituer une publicité non identifiée en faveur du parrain de l émission. Il est recommandé que soit mentionnée une cote moyenne ou, à défaut, plusieurs cotes émanant de différents opérateurs. Notes on extent of in-game promotion and the integration of gambling into commentary and coverage According to the CSA report from October 2011 on the consequences of gambling advertising (available here in French), since the partial opening of the French online gambling market, the CSA has witnessed a clear evolution of certain sports programmes, on TV but especially on radio, with the much more massive use of sponsorship. Such comments read as follows in French: Depuis l ouverture du marché des jeux en ligne, le Conseil a constaté une évolution du contenu de certaines émissions sportives et, à la radio, un recours beaucoup plus massif au parrainage. According to the CSA decision no of January 22, 2013, since the partial liberalisation of the online gambling market in France, the content of certain programs dedicated to sports has sometimes seen a denaturation. Some of these programs have tended to promote sports betting activities encouraging the public to bet, accompanied by references to earnings expectations. Such comment reads as follows in French: Depuis l ouverture du marché des jeux en ligne, l évolution du contenu de certaines émissions, notamment radiophoniques, consacrées au sport aboutit parfois à une dénaturation de ces programmes. Celle-ci tend à une promotion de l activité de paris sportifs et à une incitation faite au public à jouer, accompagnée de références à des espoirs de gains. Further rules on sponsorship, applicable not only to gambling sponsorships, are available in Decree no of March 27, Article 18 of this decree is on TV programmes specifically. The decree is available here. Notes on rules on exposing advertising to children during coverage According to the CSA decision no of January 22, 2013, it is forbidden to advertise from 30 minutes before and after a TV program presented as for minors. It reads as follows in French: Les communications commerciales précitées en faveur des opérateurs de jeux sont interdites : - sur les services de télévision et de radio présentés comme s adressant aux mineurs au sens du I de la présente délibération, conformément au 3 de l article 7 de la loi ; - sur les autres services de télévision et de radio, dans les programmes présentés comme s adressant aux mineurs au sens du I de la présente délibération, conformément au 3 de l article 7 de la loi, ainsi que durant les trente minutes précédant et suivant la diffusion de ces programmes. The CSA decisions give further detailed guidance on rules on exposing advertising to children during coverage and especially which programs are considered being for children. Programs presented as for minors are also governed by a more general law, Law no of July 16, 1949 on publications for youth, which gives further indications on the types of TV programmes which can fall into the group of programmes presented for minors. This law is available in French here. Since the partial liberalisation of the French online gambling market, the CSA has already written letters to various TV channels after noticing that some gambling advertisements were broadcasted during programs aimed at children or less than 30 minutes before and after such programs. Notes on harm minimisation advertising rules for gambling promotion is sport Further rules on warning messages have been set up in the Decree on Commercial Communications Regulation no of June 8, 2010 as well as in the Ordinance of June 8, 2010 on warning messages available in French here. Italy Notes on TV advertising rules relating to gambling The Balduzzi Decree (Decree Law no. 158 of September 13, 2012) introduced a number of measures related to gambling advertisements. Renato Balduzzi, the Ministry of Health in Italy, proposed measures to protect minors as well as problem gamblers. Below is the original text of the decree, converted into law by Law no. 189, of November 8, 2012, which enforced the advertisements rules. The majority of the rules of this law were outlined in the table above. The text of the law, in Italian, is available here. 18

20 Article 7(4) Sono vietati messaggi pubblicitari concernenti il gioco con vincite in denaro nel corso di trasmissioni televisive o radiofoniche e di rappresentazioni teatrali o cinematografiche rivolte ai minori e nei trenta minuti precedenti e successivi alla trasmissione delle stesse. E` altresı` vietata, in qualsiasi forma, la pubblicita` sulla stampa quotidiana e periodica destinata ai minori e nelle sale cinematografiche in occasione della proiezione di film destinati alla visione dei minori. Sono altresı` vietati messaggi pubblicitari concernenti il gioco con vincite in denaro su giornali, riviste, pubblicazioni, durante trasmissioni televisive e radiofoniche, rappresentazioni cinematografiche e teatrali, nonche via internet nei quali si evidenzi anche solo uno dei seguenti elementi: a) incitamento al gioco ovvero esaltazione della sua pratica; b) presenza di minori; c) assenza di formule di avvertimento sul rischio di dipendenza dalla pratica del gioco, nonche dell indicazione della possibilita` di consultazione di note informative sulle probabilita` di vincita pubblicate sui siti istituzionali dell Amministrazione autonoma dei monopoli di Stato e, successivamente alla sua incorporazione ai sensi della legislazione vigente, dalla Agenzia delle dogane e dei monopoli, nonche dei singoli concessionari ovvero disponibili presso i punti di raccolta dei giochi. Notes on extent of gambling sponsorship vs traditional forms of advertising The total amount spent on advertisements by Italian operators is not available. However, data from 2010 show, as mentioned on the table above, that approximately half of the amount spent on advertisements was through TV adverts. Snai Spa, one of the major gambling operators in Italy, has spent, according to its 2012 Half Year Report, 4m in advertisements, while another operator, Sisal, spent in marketing and commercial expenses during 2011 the total of 48m. This operator also mentioned in its 2011 Annual Report that during that year it had higher advertising costs, including costs related to television, national press, computerised billboards and live events. Notes on extent of in-game promotion and the integration of gambling into commentary and coverage There is no regulation in Italy dealing specifically with the promotion of live odds during the coverage of a sports game. There is also no restriction for gambling advertisements within the broadcasting of sport activities. Article 7(4) of the Balduzzi Decree, reproduced above in Italian, has an advertising restriction which is considered very broad, and could potentially include many forms of advertisements. The Italian gambling authority, AAMS, is expected to release further guidelines, which would clarify the scope of this rule. Article 7(4)(a) reads as follows: incitamento al gioco ovvero esaltazione della sua pratica. This means that gambling advertisements cannot encourage or exalt players to gamble. Notes on rules on exposing advertising to children during coverage General restrictions for gambling advertisements are applicable to the protection of minors. However, no rule clearly regulates the protection of children and its relation to sports coverage. This article below, from the Balduzzi Decree, rules that minors are those below 18 years of age, and restricts their access to gambling venues. Article 7(8) Ferme restando in ogni caso le disposizioni di cui all articolo 24, commi 20, 21 e 22, del decreto-legge 6 luglio 2011, n. 98, convertito, con modificazioni, dalla legge 15 luglio 2011 n. 111, e` vietato ai minori di anni diciotto l ingresso nelle aree destinate al gioco con vincite in denaro interne alle sale bingo, nonche nelle aree ovvero nelle sale in cui sono installati i videoterminali di cui all articolo 110, comma 6, lettera b), del testo unico di cui al regio decreto n. 773 del 1931, e nei punti di vendita in cui si esercita come attivita` principale quella di scommesse su eventi sportivi, anche ippici, e non sportivi. La violazione del divieto e` punita ai sensi dell articolo 24, commi 21 e 22, del predetto decreto-legge n. 98 del 2011, convertito, con modificazioni, dalla legge n. 111 del Ai fini di cui al presente comma, il titolare dell esercizio commerciale, del locale ovvero del punto di offerta del gioco con vincite in denaro identifica I minori di eta` mediante richiesta di esibizione di un documento di identita`, tranne nei casi in cui la maggiore eta` sia manifesta. Il Ministero dell economia e delle finanze, entro sei mesi dalla data di entrata in vigore della legge di conversione del presente decreto, emana un decreto per la progressiva introduzione obbligatoria di idonee soluzioni tecniche volte a bloccare automaticamente l accesso dei minori ai giochi, nonche volte ad avvertire automaticamente il giocatore dei pericoli di dipendenza dal gioco. Notes on harm minimisation advertising rules for gambling promotion in sport The new advertising regulation, implemented on January 1, 2013 by the Balduzzi Decree, has no specific rule applicable to sport coverage. General rules applicable to all gambling advertisements include the publicity of key elements to players, such as each game s payout and a warning message that gambling can become an addiction. These articles below create the necessity for operators to announce the payout in a clear form as well as inform players that this information is available on AAMS website. Violation of the advertising regulation is an administrative offence which can be punished with a fine up to 500,000. It reads as follows in Italian: Article 7(4-bis) La pubblicita` dei giochi che prevedono vincite in denaro deve riportare in modo chiaramente visibile la percentuale di probabilita` di vincita che il soggetto ha nel singolo gioco pubblicizzato. Qualora la stessa percentuale non sia definibile, e` indicata la percentuale storica 19