UK Gambling Companies Spent ‘Astronomic’ Figure On Advertising Last Year, Claims WARC Report

The World Advertising Research Center (WARC) has estimated that UK gambling companies spent £2 billion ($2.62 billion) on advertising last year.

The figure, reported by the Guardian, includes spending by sports betting companies, online casinos, and slot machine companies on printed and digital promotions as well as affiliate marketing.

It is a significant increase on the £1.5 billion spent in 2018, according to Regulus Partners. The Betting and Gaming Council (BGC), however, has disputed the amount, claiming that industry ad spend was closer to £1 billion ($1.3 billion).

Politicians: Ad Spend Justifies Increase in Taxes

Meg Hillier, the chair of the Treasury select committee that is evaluating the potential impact of a gambling tax increase, said the advertising spending is proof that gambling companies should be paying more.

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

She went on to criticize the BGC, which claimed that a tax increase would cause “untold damage” to the UK economy. The BGC has been lobbying persistently against potential tax increases on gambling in this month’s UK budget. Chancellor Rachel Reeves is expected to raise the tax on online casinos, slots, and sports betting, but will not include a tax hike on horse racing.

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

Alex Ballinger, a Labour MP who has also campaigned for increased taxes, said the figure was an “astronomic sum.” He stated, “Perhaps gambling firms should think about cutting back on adverts that nobody wants to see before pushing back against paying fair taxes on their vast profits, particularly given the harms they cause.”

Calls for Tougher Rules Around Gambling Ads

There have been calls in the UK to implement more restrictions on gambling advertising. Under pressure from politicians, the Premier League will ban front-of-shirt gambling sponsors starting next season.

Despite the impending ban, a study by the University of Bristol showed that gambling advertising remains high in the Premier League this season. The study noted the number of ads in the opening weekend of fixtures was about the same as last season, which was triple the number seen in 2023.

In 2019, gambling companies voluntarily agreed to refrain from advertising for five minutes before the start of live sports broadcasts until five minutes after the end. However, this does not cover in-stadium messages, shirt sponsors, or social media.

The chair of the Gambling Reform All-Party Parliamentary Group, Sir Iain Duncan Smith MP, said: “This level of gambling advertising during the Premier League’s first weekend is frankly astonishing. The industry claimed it was taking steps to self-regulate and reduce advertising, but yet again, they have not kept to their word.”

BGC Warns Gov’t Moves Will Drive Black Market Growth

Some countries have implemented strict regulations banning gambling ads during live sports. Earlier this year, the Netherlands introduced a ban, which the country’s gambling regulator (KSA) says is being followed by operators. The KSA also increased gambling taxes both last year and again this year.

Critics, including the BGC, argue that these measures are fueling the growth of the black market in the country. Figures showed that the amount being gambled at unregulated gambling sites now outnumbers the amount at regulated platforms.

Italy, Belgium, Spain, and Australia have all introduced stricter rules around gambling ads with similar results. Advocates claim it is reducing the exposure of gambling to minors, while critics claim it is driving more users to unregulated sites.

In Australia, current regulations are similar to the UK, with a ban on gambling ads during live sport broadcasts during the day. ABC, the national broadcaster in Australia, also prohibits any relationship with gambling companies for anyone working in sports coverage.

Cricketer Glenn McGrath was removed from his role as a commentator on the Ashes due to a link to bet365. He is, however, part of the UK’s BBC commentary team.

There have been calls to introduce a blanket ban on all gambling advertising in Australia, but Prime Minister Anthony Albanese has resisted over fears the black market will grow.

The debate will continue, but in the UK, advertising spending may well decrease as taxes increase. The new budget will be revealed this week, which will show the size of the increase.