There is indeed a trend in developed Western markets to ban gambling advertising. Regulatory legislation is becoming more and more stringent, and legal gambling organisers are constantly experiencing increasing pressure and restrictions. However, the key difference between developed economies with legalised gambling and jurisdictions such as Ukraine is the presence of a balance. It is ensured by the fact that by "tightening the screws" in one niche, conditions are created for the gambling business in other niches to compensate for the negative effects of regulatory restrictions. And the field of gambling advertising and marketing is a prime example of this.
We are all well aware that gambling advertising has recently been effectively banned in Ukraine. Both the market and players have already felt the negative consequences of this. Legal gambling organisers have lost the opportunity to advertise their brands, which means that players are rapidly losing the ability to distinguish between legal and illegal platforms.
Illegal immigrants were of course quick to take advantage of the information vacuum that had formed in the market. They have significantly increased their marketing budgets and increased their information presence, especially in online media and popular messenger channels. As a result, they are attracting more and more players, including the military.
Why did this happen? Because these advertising bans apply only to legal companies. Having obligations to the law, they are forced to comply with these bans, while for illegal companies it only creates additional opportunities to strengthen their positions.
What should we do about it? Follow the example of developed markets and try to strike the balance I mentioned above. Legal gambling organisers should have alternative channels and methods that they can use to promote their business.
A striking example of such an alternative is the permission to sponsor large-scale events - sports, cultural, etc. For example, for the first time in the history of the Champions League, one of the largest football events in the world that brings together thousands of players and hundreds of millions of fans, two major betting brands - Betano and Bet365 - became partners of the tournament.
That is, on the one hand, these brands have to comply with complex and strict requirements for advertising their services in European markets, and on the other hand, by becoming advertising partners/sponsors of such a large-scale event, they get a lot of opportunities to express themselves and demonstrate their responsibility and the benefits of their business without resorting to direct advertising.
A similar balance is needed in our market, especially as restrictions have created new opportunities for illegal gamblers and put legal brands at an even greater disadvantage. It should be the other way round - opportunities for development should be created for legal businesses that pay taxes and take care of their players, while the activities of illegal operators should be strictly limited.
Comments