The Future of Sports Betting Advertising in Canada: Navigating the Path to a National Regulatory Framework

A new bill calls for a national framework around sports betting advertising
Criticism of too much advertising in Canada
National standards for the prevention and diagnosis of harmful gambling and addiction

The Canadian iGaming industry could soon find itself governed by new rules for national sports betting advertising, as a bill that would establish a new advertising framework has made significant progress towards becoming law.

Bill S-211, officially known as the National Framework on Sports Betting Advertising Act, introduced by the Hon. Sen. Marty Deacon, was recently approved by Senate members during a hearing, and it now advances to a third reading in the Senate.

The bill mandates the Minister of Canadian Heritage to develop national standards for sports betting advertising, focusing on content, timing, and overall volume of gambling advertisements.

The key components of the national framework include:

Identification of measures to regulate sports betting advertising, aiming to limit the volume, scope, or locations of such advertising, as well as the involvement of celebrities and athletes in promotion.
Promotion of research and intergovernmental information-sharing regarding the prevention and diagnosis of harmful gambling, particularly in minors, along with supportive measures for affected individuals.
Establishment of national standards for preventing and diagnosing gambling addiction, including support mechanisms for individuals impacted by gaming disorders.

National Framework for Advertising

The responsible minister is required to collaborate with federal government ministers, provincial and territorial representatives, relevant stakeholders, indigenous communities, and gaming regulators to shape this framework effectively.

Within a year of the act coming into force, the minister must submit a comprehensive report outlining the regulations for sports betting advertising and a strategy for their implementation.

Previously, another proposal, Bill S-269, passed through the Senate but failed to progress through the House of Commons prior to the dissolution of Parliament before last spring’s election.

Recent polling by Maru Public Opinion revealed that 60% of Canadians believe a nationwide ban on sports betting advertisements should be enforced immediately.

Impact of Gambling on Young People

Senator Deacon and many others are intensely concerned about the overwhelming saturation of sports betting advertisements and their implications for young individuals. The potential rise in gambling addiction, especially among children and young adults, poses a critical societal issue.

The increase in adult problem gambling correlates with the pervasive advertising seen during sporting events. This surge in gambling can lead to severe mental health impacts, affecting not only the gamblers themselves but also their families and communities, resulting in collateral issues such as crime, bankruptcy, and even suicide.

Deacon referenced the experience of the United Kingdom, where the legalization of single-event sports betting in 2005 occurred alongside lax advertising restrictions. Today, this has led to approximately one-third of a million individuals identified as problem gamblers, 55,000 of whom are minors.

Fewer TV Ads

“This isn’t merely a distraction,” Deacon asserted in the Senate chamber. “These promotions have serious, evidence-based negative consequences.”

The law allowing single-game wagering in Canada was passed in 2021 (Bill C-218), and the open, regulated iGaming market was launched in Ontario in April 2022.

Concerns about Bill S-211 have been voiced at various forums. Notably, thinkTV CEO Catherine MacLeod discussed how sports betting advertising has decreased since the introduction of the regulated Ontario market.

MacLeod’s nonprofit organization educates brands on the benefits of impactful TV advertising for customer engagement.

Limits on Sports Betting Ads

“Ad spend has actually decreased every year since its launch,” MacLeod told a panel during the summit. “In my view, the issue isn’t one of excessive advertising; rather, if we want to engage young audiences, we should not rely on traditional television mediums.”

MacLeod firmly believes that broadcasters are committed to addressing these concerns responsibly and proactively.

Huge Grey Market

The rationale behind establishing a regulated iGaming market is to bolster government revenue while rooting out black and grey markets that operate outside legal parameters. MacLeod pointed out, “We haven’t moved the needle away from these grey markets; this isn’t an advertising problem per se; it’s about a broader context.”

NFL Weighs In

Sports leagues have expressed their apprehensions concerning this legislation. Jonathan Nabavi, the NFL’s vice president for public policy and government affairs, emphasized the importance of a robust monitoring system to mitigate illegal gambling activities while also highlighting how over-regulation on advertising could inhibit efforts to redirect illegal sports betting to legal markets.

Wazdan Expands Ontario Presence with NorthStar Deal

Exciting developments continue as NorthStar players will soon gain access to popular Wazdan casino titles such as 36 Coins, Hot Slot, and 777 Cash Out Grand Diamond Edition as Wazdan partners with the Canadian online casino operator.

Wazdan’s Head of Sales and Business Development, Radka Bacheva, mentioned, “This collaboration marks a significant milestone for us, paving the way for unparalleled growth and entertainment across the nation.”

Conclusion

The ongoing development of the national framework for sports betting advertising in Canada aims to address the critical issues sweeping the industry. With regulatory oversight intended to reduce exposure to gambling-related harm, stakeholders are closely watching its progression. This framework not only strives to protect vulnerable groups, especially young people, but also aims to ensure responsible advertising practices in the burgeoning landscape of Canadian gaming.

Stay tuned to learn more as this important legislation unfolds!