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Teaming reign: A brief look at marketing convergence in online sports betting

The marketing cycle of a typical online betting firm aptly illustrates the converging nature of sports and its neighbouring industries. For instance, consider the following football narrative. A betting site buys advertisement space in a national newspaper. The online edition of that newspaper accompanies the advertisement with an active link. If a user clicks on it and access the betting site, the newspaper as an affiliate marketer will get 30% of the money that user has lost betting. In order to boost the number of users clicking on it, the paper publishes next to it a news article featuring Real Madrid on the eve of a match against Manchester United with the following headline: ‘Cristiano Ronaldo scored in 4 of his last 5 visits to Old Trafford’. Now, the journalist shares the link to that piece of news on Twitter, predicting a goal from Ronaldo, with a non-negligible likelihood that he or she is in business with a betting company, according to what was found in a 2014 sample of the ten most followed sports journalists in Spain.

The tweet might be read by someone at home, or even in the stands of a stadium as the game is being played, in which case a betting company might have sponsored the installation of high-speed Wi-Fi connection to facilitate bets. The bet will be preferably made in the proprietary app of the team, who partnered with the betting firm for an amount of money in exchange for adorning the stadium with the brand’s logo, although exclusivity in the electronic banners surrounding the pitch is not possible since the home team must comply with the different betting partners of the league.

Generating-Income-from-Sports-Betting-Affiliate-Programs

Chances are that those at home watching the game on television will hear a litany of statistics about the game delivered by the commentators, provided by a data company like Perform or Dimension Data, who in turn also provide those same data to betting companies, and which are also in a partnership with the league. It is these same data that will inform a fantasy league competition, which also sponsors the league. It might be the case that among the members of the family watching the game at home there are minors who cannot legally gamble for money, for whom a social gaming alternative is also available that can smooth the transition towards real money gambling in the future.

Also, for some demographic groups, sports betting might not be as appealing as eSports, but sport teams have already started sponsoring players in those competitions. When the match has finished, fans can watch further gambling commercials such as ones related to poker, conveniently introduced by sportsmen such as Neymar, Rafael Nadal or Cristiano Ronaldo, or indulge themselves in a little trading in the forex market company Xtrade endorsed by Cristiano Ronaldo himself.

A potential downside of such convergence might be the errors derived by a faulty identification of each product’s category and characteristics. The border between not-for-real-money social gaming on sports and real money gambling might not be obvious, especially when gambling gradually approaches gaming with more gamification attributes being added to the betting experience, and simultaneously, gaming approaches gambling by implementing real or virtual money in-app micro purchases or simulating gambling environments. Blurred lines might impact the understanding of what is information and what is promotion, as has been observed with children having problems distinguishing gambling advertising from non-advertising content (as demonstrated by Helena Sandberg and her colleagues in a 2011 issue of the International Journal of Communication). Another downside could be the transference of positive attributes from sport to other markets (most notably financial trading or poker in the example above), that buy their way into the mental association by, for instance, becoming a named sponsor of a sporting competition.

However, neither the situational and structural characteristics nor the cross-marketing convergence act as singular factors determining online betting behaviour. More likely, they work by aggregation, populating a marketing and advertising ecosystem that far from curtailing other gambling motivating factors – individual factors such as the biological, psychological or social characteristics of the gambler – it facilitates them.

(Please not that this article was co-written with Dr. Hibai Lopez-Gonzalez).

Dr. Mark Griffiths, Professor of Behavioural Addiction, International Gaming Research Unit, Nottingham Trent University, Nottingham, UK

Further reading

Deans, E.G., Thomas, S.L,. Derevensky, J. & Daube, M. (2017) The influence of marketing on the sports betting attitudes and consumption behaviours of young men: implications for harm reduction and prevention strategies. Harm Reduction Journal, 14(5). doi:10.1186/s12954-017-0131-8.

Deans, E.G., Thomas, S.L,. Daube, M. & Derevensky J (2016) The role of peer influences on the normalisation of sports wagering: a qualitative study of Australian men. Addiction Research & Theory. doi: 10.1080/16066359.2016.1205042.

Gainsbury, S.M., Delfabbro, P., King, D.L., et al. (2016) An exploratory study of gambling operators’ use of social media and the latent messages conveyed. Journal of Gambling Studies, 32, 125–141.

Gordon, R. & Chapman, M. (2014). Brand community and sports betting in Australia. Victoria, Australia: Victorian Responsible Gambling Foundation.

Hing, N. (2014). Sports betting and advertising (AGRC Discussion Paper No. 4). Melbourne: Australian Gambling Research Centre.

Hing, N., Lamont, M., Vitartas, P., et al. (2015). Sports-embedded gambling promotions: A study of exposure, sports betting intention and problem gambling amongst adults. International Journal of Mental Health and Addiction, 13(1), 115–135..

Lopez-Gonzalez, H., Estevez, A. & Griffiths, M.D. (2017). Marketing and advertising online sports betting: A problem gambling perspective. Journal of Sport and Social Issues, in press.

Lopez-Gonzalez, H. & Griffiths, M.D. (2016). Is European online gambling regulation adequately addressing in-play betting advertising? Gaming Law Review and Economics, 20, 495-503.

Lopez-Gonzalez, H., Estevez, A. & Griffiths, M.D. (2017). Marketing and advertising online sports betting: A problem gambling perspective. Journal of Sport and Social Issues, 41, 256-272.

Lopez-Gonzalez, H., Estévez, A. & Griffiths, M.D. (2017). Controlling the illusion of control: A grounded theory of sports betting advertising in the UK. International Gambling Studies, in press.

Lopez-Gonzalez, H. & Griffiths, M.D. (2017). Betting, forex trading, and fantasy gaming sponsorships – A responsible marketing inquiry into the ‘gamblification’ of English football. International Journal of Mental Health and Addiction, in press.

Lopez-Gonzalez,Generating-Income-from-Sports-Betting-Affiliate-Programs H. & Griffiths, M.D. (2017). Understanding the convergence of online sports betting markets. International Review for the Sociology of Sport, in press.

Lopez-Gonzalez, H., Guerrero-Sole, F. & Griffiths, M.D. (2017). A content analysis of how ‘normal’ sports betting behaviour is represented in gambling advertising. Addiction Research and Theory, in press.

Lopez-Gonzalez, H. & Tulloch, C.D. (2015) Enhancing media sport consumption: Online gambling in European football. Media International Australia, 155, 130–139.

Sandberg, H., Gidlof, K. & Holmberg, N. (2011). Children’s exposure to and perceptions of online advertising. International Journal of Communication, 5, 21–50.

Market forces: Does gambling advertising increase problem gambling?

Anyone who watched the Euro 2016 football tournament on ITV a couple of months ago will have noticed the many offers to gamble on the matches. You were encouraged to download the bookies’ mobile apps, or asked to bet-in-play and gamble responsibly. But how do we respond to gambling ads? Do they actually draw us in? Arguably the most noticeable change in the British gambling landscape since the Gambling Act came into force in September 2007 has been the large increase in gambling advertising on television. Prior to this, the only gambling ads allowed on TV were those for National Lottery products, bingo, and the football pools.

In 2013, Ofcom published their research examining the volume, scheduling, frequency and exposure of gambling advertising on British television. The findings showed that there had been a 600% increase in UK gambling advertising between 2006 and 2012 – more specifically, there were 1.39m adverts on television in 2012 compared to 152,000 in 2006. The report also showed that gambling adverts accounted for 4.1% of all advertising seen by viewers in 2012, up from 0.5% in 2006 and 1.7% in 2008.

So is the large increase having any effect on gambling and problem gambling? In 2007, prior to there being widespread gambling ads on TV, the British Gambling Prevalence Survey (BGPS) of over 9,000 people (aged 16 years and over) reported that 0.6% of them were problem gamblers. In the 2010 BGPS, the problem gambling prevalence rate had increased by half to 0.9%. Some of this increase may, arguably, have been due to increased gambling advertising. However, the latest British survey research shows that the prevalence of problem gambling is back down (to 0.5%), so perhaps increased gambling advertising hasn’t resulted in an increase of problem gambling.

Surprisingly, there is relatively little scientific evidence that advertising directly influences gambling participation and problem gambling. This is partly because demonstrating empirically that the negative effects of gambling are solely attributable to advertising is hard. For instance, a study of 1,500 people in New Zealand by Ben Amey, a governmental social science researcher at the Ministry of Internal Affairs, reported an association between participation in gambling activities and recall of gambling advertising. The study fund that over 12 months, 83% of people who had gambled between zero and three times remembered seeing gambling ads during that time. For people that had gambled four or more times, the figure was at 93%.

Last year, research colleagues from the University of Bergen in Norway and I published one of the largest studies carried out on gambling advertising. It involved more than 6,000 people and examined three specific dimensions of gambling advertising impacts: gambling-related attitudes, interest, and behavior (“involvement”); knowledge about gambling options and providers (“knowledge”); and the degree to which people are aware of gambling advertising (“awareness”). Overall, we found that impacts were strongest for the “knowledge” dimension. We also found that for all three dimensions, the impact increased with the level of advertising exposure.

We then compared the responses from problem gamblers against those of recreational (non-problem) gamblers. We found that problem gamblers were more likely than recreational gamblers to agree that gambling advertising increased their gambling involvement and knowledge, and that they were more aware of gambling advertising. In simple terms, our study showed that gambling advertising has a greater impact on problem gamblers than recreational gamblers. This indirectly supports previous research showing that problem gamblers often mention that gambling advertising acts as a trigger to their gambling.

We also found that younger gamblers were more likely than older ones to agree that advertising increased their gambling involvement and knowledge. This supports previous research showing that problem gambling is associated with stronger perceived advertising impacts among adolescents. One of the more worrying statistics reported in the Ofcom study was that children under 16 years of age were each exposed to an average of 211 gambling adverts a year (adults saw an average of 630). I am a firm believer that gambling is an adult activity and that gambling adverts should be shown only after the 9pm watershed. Unfortunately, all televised sporting events such as Euro 2016 can feature gambling ads at any time of the day, and that means that tens of thousands of schoolchildren have been bombarded with gambling ads over the last month.

Most of us who work in the field of responsible gambling agree that advertising “normalises” gambling and that all relevant governmental gambling regulatory agencies should prohibit aggressive advertising strategies, especially those that target impoverished individuals or youths. Most of the research data on gambling advertising uses self-report data (surveys, focus groups, interviews, etc.) and very little of these data provide an insight into the relationship between advertising and problem gambling. A review by the British lawyer Simon Planzer and Heather Wardle (the lead author of the last two BGPS surveys) concluded that gambling advertising is an environmental factor that has the power to shape attitudes and behaviours relating to gambling – but just how powerful it is remains unclear.

Overall, the small body of research on the relationship between gambling advertising and problem gambling has few definitive conclusions. If gambling advertising does have an effect, it appears to impact specific groups (such as problem gamblers and adolescents) but most of this research uses self-reported data that has been shown to be unreliable among gamblers.

At best, the scientific research only hints at the potential dangers of gambling ads. But in order to challenge the increasing normalisation of gambling among these most-at-risk groups, we need more robust evidence. Only then will we be able to understand the psychosocial impact of the kind of blanket advertising seen by children and adults during major sporting events such as Euro 2016.

(N.B. A version of this article was first published in The Conversation)

Dr Mark Griffiths, Professor of Behavioural Addiction, International Gaming Research Unit, Nottingham Trent University, Nottingham, UK

Further reading

Griffiths, M.D. (1997). Children and gambling: The effect of television coverage and advertising. Media Education Journal, 22, 25-27.

Griffiths, M.D. (2005). Does advertising of gambling increase gambling addiction? International Journal of Mental Health and Addiction, 3(2), 15-25.

Griffiths, M.D. (2010). Media and advertising influences on adolescent risk behaviour. Education and Health, 28(1), 2-5.

Griffiths, M.D. (2010). Social responsibility in marketing for online gaming affiliates. i-Gaming Business Affiliate, June/July, p.32.

Griffiths, M.D. (2013). Responsible marketing and advertising of gambling. i-Gaming Business Affiliate, August/September, 50.

Hanss, D., Mentzoni, R.A., Griffiths, M.D., & Pallesen, S. (2015). The impact of gambling advertising: Problem gamblers report stronger impacts on involvement, knowledge, and awareness than recreational gamblers. Psychology of Addictive Behaviors, 29, 483-491.

Lopez-Gonzalez, H. & Griffiths, M.D. (2016). Is European online gambling regulation adequately addressing in-play betting advertising? Gaming Law Review and Economics, in press.

Reid, J. & Griffiths, M.D. (2004). Lotteries, television advertising, and televised lottery draws, Panorama (European State Lotteries and Toto Association), 15, 8-9.

Zangeneh, M., Griffiths, M.D. & Parke, J. (2008). The marketing of gambling. In Zangeneh, M., Blaszczynski, A., and Turner, N. (Eds.), In The Pursuit Of Winning (pp. 135-153). New York: Springer.

Common markets: Has gambling advertising increased problem gambling in the UK?

Arguably the most noticeable change in the British gambling landscape since the 2005 Gambling Act came into force on September 1, 2007 is the large increase of gambling advertising on television. Prior to September 2007, the only gambling adverts allowed on television were those for National Lottery products, bingo, and the football pools. Back in January 2012, Liberal Democrat MP Tessa Munt told Parliament that there were almost 36 hours a week of gambling adverts on television. She called for a review of the situation by Ofcom (the independent regulator and competition authority for the UK communications industries). She asked Prime Minister David Cameron to “please protect consumers, children and the vulnerable from this kind of activity [especially] at a time when we are encouraging people to be moderate in their expectations and behaviour”. The PM acknowledged Munt’s plea and described the issue as “a question of responsibility by the companies concerned. Anyone who enjoys watching a football match will see quite aggressive advertisements on the television, and I think companies have to ask themselves whether they are behaving responsibly when they do that”.

The day-to-day responsibility for enforcing rules about advertising content (and its scheduling) rests with the Advertising Standards Authority. However, for radio and television, the 2005 Gambling Act requires Ofcom to set, review, and revise standards for gambling advertisements in these media. In short, Ofcom is the regulating watchdog for all communications and retains overall responsibility for the advertising rules that gaming operators have to adhere to. Earlier this year, Ofcom commissioned some research to examine the volume, scheduling, frequency and exposure of gambling advertising on British television.

In November 2013, Ofcom finally published their findings research and showed that there had been a 600% increase in gambling advertising in the UK in 2012 compared to 2006 (more specifically there were 1.39 million adverts on television in 2012 compared to 152,000 adverts in 2006). In 2005, the number of televised gambling adverts was 90,000 and rose to 234,000 by 2007, and 537,000 in 2008. The research findings were based on analysis of the Broadcasting Audience Research Board (BARB) viewing data by Zinc Research & Analytics that categorized gambling adverts into one of four types (i.e., online casino and poker services; sports betting; bingo; and lotteries and scratch cards).

The bingo sector had the largest proportion of adverts with bingo adverts accounting for 38.3% of all British gambling adverts (approximately 532,000). Online casino and poker adverts comprised 29.6% of all television gambling advertising (approximately 411,000) with lotteries and scratchcards in third place with 25.6% (approximately 355,000), and sports betting in fourth place with 6.6% (approximately 91,000). The report also reported that gambling adverts accounted for 4.1% of all advertising seen by viewers in 2012 (up from 0.5% in 2006; 1.7% in 2008).

As someone who has written two books on adolescent gambling (see ‘Further reading’ below), one of the more worrying statistics reported was that children under 16 years of age were exposed to an average of 211 gambling adverts a year each (compared to adults who saw an average of 630). I am a firm believer that gambling is an adult activity and that gambling adverts should be shown after the 9pm watershed.

In addition to the relaxation of the laws relating to television advertising, another reason for the large increase in the number of adverts is the increase in the number of digital television channels. Over the time period, he total amount of television advertising airtime doubled from 17.4m to 34.2m spots. The report also highlighted that the 1.39m television adverts for gambling produced 30.9bn ‘impacts’ in 2012 (i.e., the number of times a commercial was seen by viewers) – up from 8 billion in 2006.

So is the large increase in gambling advertising having any effect on gambling and problem gambling? Well, the most recent British Gambling Prevalence Survey (BGPS) published in 2011 showed that 73% of the British adult population (aged 16 years and over) participated in some form of gambling in the past year (equating to around 35.5 million adults). The most popular British gambling activity was playing the National Lottery (59%), a slight increase from the previous BGPS in 2007 (57%). There was an increase in betting on events other than horse races or dog races with a bookmaker (6% in 2007, 9% in 2010), buying scratchcards (20% in 2007, 24% in 2010), gambling online on poker, bingo, casino and slot machine style games (3% in 2007, 5% in 2010) and gambling on fixed odds betting terminals (3% in 2007, 4% in 2010), football pools (3% in 2007, 4% in 2010, 9% in 1999). There were some small but significant decreases in the popularity of slot machines (13% in 2010, 14% in 2007) and online betting (4% in 2007, 3% in 2010). For all other gambling activities, there was either no significant change between survey years or estimates varied with no clear pattern.

Men were more likely to gamble than women overall (75% men; 71% women). Among women, past year gambling increased from 65% in 2007 to 71% in 2010. Among men, past year gambling estimates were higher in 2010 than 2007 (75% and 71% respectively). Perhaps the most noteworthy statistic (particularly in relation to the substantial increase in televised gambling advertising) was that the prevalence of problem gambling was higher in 2010 (0.9%) than in 2007 (0.6%) equating to a 50% increase in problem gambling. One of the possible reasons for this statistically significant increase in problem gambling could well have been the increased exposure to gambling adverts on television.

Dr Mark Griffiths, Professor of Gambling Studies, International Gaming Research Unit, Nottingham Trent University, Nottingham, UK

Further reading

Banham, M. (2013). Gambling TV ads up nine-fold since laws relaxed. Brand Republic, November 19. Located at: http://www.brandrepublic.com/news/1221494/Gambling-TV-ads-nine-fold-laws-relaxed/

Griffiths, M.D. (1995). Adolescent Gambling. London: Routledge.

Griffiths, M.D. (2002). Gambling and Gaming Addictions in Adolescence. Leicester: British Psychological Society/Blackwells.

Press Association (2012). Gambling adverts soar. November 19. Located at: http://uk.news.yahoo.com/gambling-ads-tv-soar-152721196.html#IPrymtu

Stradbrooke, S. (2011). UK puts TV gambling ads on notice; Ireland blames gambling for suicides. CalvinAyre.com, January 19. Located at: http://calvinayre.com/2012/01/19/business/uk-puts-gambling-tv-ads-on-notice/

Sweney, M. (2013). TV gambling ads have risen 600% since law change. The Guardian, November 19. Located at: http://www.theguardian.com/media/2013/nov/19/tv-gambling-ads

Wardle, H., Moody. A., Spence, S., Orford, J., Volberg, R., Jotangia, D., Griffiths, M.D., Hussey, D. and Dobbie, F. (2011).  British Gambling Prevalence Survey 2010. London: The Stationery Office.

Wardle, H., Sproston, K., Orford, J., Erens, B., Griffiths, M.D., Constantine, R. and Pigott, S. (2007). The British Gambling Prevalence Survey 2007. London: The Stationery Office.