A new report released by the Canadian Gaming Association sheds light on the fast expansion of gambling advertising regulations in Canada.
Conducted by GP Consulting, the study highlights concerns that regulatory changes are outpacing the evidence needed to shape effective policies.
Drawing on insights from 41 academic studies and global comparisons, it signals the need for a balanced approach, especially as provinces like Ontario lead the way with stringent rules.
A Closer Look at the Study
Released in September 2024, the Canadian Gaming Association’s commissioned study highlights the challenges regulators face in keeping pace with the evolving gaming industry.
The report, conducted by GP Consulting, warns that Canadian gambling regulations are “evolving at a faster rate than the accompanying evidence base.” This discrepancy could result in poorly targeted or insufficiently nuanced rules that fail to address critical issues effectively.
CGA’s study review included an analysis of 41 academic studies on online sports betting and casino advertising, offering insights into how regulations could be improved to ensure consumer protection and industry sustainability.
The research team comprised policy experts from Eilers & Krejcik Gaming and academics from the International Gaming Institute at the University of Nevada, Las Vegas, and Washington State University.
The Fast Rise of Canadian Digital Gambling Regulations
The commissioned study comes after a couple of fast-paced years in the industry. In April 2022, Ontario became the first province in Canada to introduce regulated digital gambling. This landmark move opened a new chapter for the country’s gaming industry, bringing online betting into a legalized framework.
Almost overnight, gambling advertisements became a ubiquitous presence, sparking debates about their impact on public perception and vulnerable populations.
However, the rapid expansion of the market sparked public concern. Complaints about frequent and aggressive gambling advertisements began surfacing soon after legalization. This growing unease prompted regulators to respond with policy changes to curb potentially harmful practices.
While regulators acted quickly to address mounting concerns, the rapid pace of policy shifts has drawn attention from industry experts and researchers. These voices now urge a cautious, evidence-driven approach to ensure that regulations balance consumer protection and market growth in a rapidly changing environment.
The Alcohol and Gaming Commission of Ontario (AGCO) acted swiftly. In February 2024, it banned the use of celebrities and athletes in gambling advertisements. Discussions in Canada’s parliament about further restrictions, including limiting ad airtime or outright bans, signal a broader push for stricter controls.
Yet, these decisions highlight a critical issue: regulators are moving faster than research can support, risking a misalignment between policies and their intended impact.
The Evolution of Ontario’s Gambling Rules
Ontario’s foray into regulated online gambling brought sweeping changes to Canada’s gaming landscape, reshaping how operators, advertisers, and players engage with the industry.
But the province’s pioneering role in regulated gambling has not been without challenges. When Ontario launched its digital gaming market, one of its primary objectives was to integrate grey market operators into a regulated framework. This goal required balancing consistent consumer protection standards with ethical advertising practices.
These regulations have become more restrictive over time. The 2024 ban on celebrity endorsements in gambling ads reflects a commitment to shielding vulnerable audiences, particularly minors, from exploitative marketing tactics.
Aligning with CGA’s study’s recommendation, this ban caused companies to avoid using high-profile figures in advertisements except for responsible gambling campaigns.
The AGCO’s proactive measures position Ontario as a leader in responsible gambling initiatives, but the study cautions against applying similar frameworks across Canada without tailored research. The effectiveness of these rules remains dynamic and may need adjustment as the market continues to evolve.
Five Themes for Safe Gambling Advertising
The study identifies five critical themes for crafting successful and responsible gambling advertisements. These guidelines aim to protect consumers while ensuring that marketing practices align with ethical standards:
- Good Taste and Moral Expectations: Ads must avoid false promises or misleading content, focusing on responsible play and steering clear of promoting excessive gambling.
- Protecting Vulnerable Populations: Special attention should be given to avoiding content that appeals to youth or other vulnerable groups.
- Restricting Celebrity Endorsements: Celebrities and athletes should not be used in gambling ads except when promoting responsible gambling messages.
- Regulating Online Promotions: Enticing phrases like “free” or “risk-free” should be banned, and promotions should be limited to opt-in channels.
- Affiliate Accountability: Gambling operators must ensure their affiliates comply with advertising standards to prevent misleading practices.
These themes provide a framework for regulators not only in Canada but also in jurisdictions worldwide.
Global Comparisons
To contextualize the state of Canadian gambling regulations, the study examines advertising frameworks in Denmark, Michigan, New Jersey, Ontario, and the United Kingdom.
The findings indicate that the UK currently enforces the strictest rules, particularly around advertising restrictions and consumer protection measures. Ontario ranks second, reflecting its significant strides in aligning with international best practices.
This underscores the global relevance of the study’s findings and the importance of Canada’s role in the international gambling community.
Denmark, Michigan, and New Jersey follow closely, offering diverse models that balance industry growth with ethical advertising. These global comparisons highlight the importance of tailoring regulations to specific market conditions, an approach Canadian regulators are encouraged to adopt.
Recommendations for Canadian Regulators
The study emphasizes the need for a more measured and evidence-based approach to crafting gambling regulations.
Targeted research emerges as a key priority, particularly in areas like responsible gambling advertising, cultural bias, and the measurement of exposure and outcomes. The researchers advocate for flexible, adaptable policies that can evolve alongside the dynamic gambling market, ensuring the longevity and effectiveness of the regulations.
Ontario’s experience offers valuable lessons for other provinces, including Alberta, which is preparing to launch its regulated digital gambling market.
The researchers stress that provincial regulators should avoid a one-size-fits-all approach and instead focus on localized data and consumer behaviour to inform policy decisions.
Broader Implications for the Canadian Market
Canadian Gaming Association’s findings extend beyond advertising. They emphasize regulators’ broader challenges in balancing consumer protection with industry growth, which is of utmost importance as gambling becomes increasingly integrated into Canada’s cultural and economic landscape.
Operators also have a role to play in this evolving landscape. Companies can contribute to a sustainable market that benefits players and businesses by adopting ethical advertising practices and investing in responsible gambling initiatives.
Staying Flexible in a Changing Environment
The dynamic nature of the gambling industry requires regulators to remain adaptable.
As consumer behaviour shifts and new technologies emerge, policies must evolve to address emerging risks while fostering innovation.
The study encourages Canadian regulators to continuously dialogue with stakeholders, including operators, academics, and advocacy groups. Their input is crucial in ensuring that regulations remain relevant and effective.
A Call for Balanced Progress
The rapid expansion of Canadian gambling regulations reflects the industry’s growth and the increasing need for consumer protection.
However, the findings of this study serve as a cautionary note, urging regulators to align policies with robust evidence. It cautions against hastily implementing rules without sufficient research, as this could lead to poorly targeted policies that fail to address critical issues effectively.
It’s equally as important that this report highlights the importance of a more measured and evidence-based approach, particularly as the gambling industry continues to evolve rapidly.
Canada can create policies that balance consumer protection and industry growth by aligning regulatory efforts with robust data and engaging with stakeholders. By prioritizing targeted research, flexible approaches, and collaboration, the nation can lead the way in creating a gambling market that is both responsible and sustainable.
