An island charity has welcomed a crackdown on ‘bet now’ television ads under new standards issued by the advertising watchdog.

Gaming companies in the Isle of Man will be closely looking at the tougher rules on gambling advertising.

The Committee of Advertising Practice (CAP) said the ads, which offer free bets and bonuses, appealed to problem gamblers.

They are the latest in a series of measures taken around gambling advertising

And news of the ban came as it emerged Douglas-registered online gaming giant GVC Holdings has been fined £350,000 by the UK Gambling Commission for misleading gamblers with adverts relating to free bonuses

Committee of Advertising Practice (CAP) director Shahriar Coupal said: ‘We won’t tolerate gambling ads thatexploit people’s vulnerabilities or play fast and loose with eyecatching free bet and bonus offers.’

Motiv8 Addiction Services’ gambling support service, GamCare Isle of Man, welcomes the new advertising standards and feels that ‘anything that protects those vulnerable to developing gambling addiction is a positive move.’

And Castletown-based Warwick Bartlett chief executive of Global Betting and Gaming Consultants GBGC told Business News: ‘A significant proportion of the island’s employment and revenue is now sourced from eGaming so any material changes to regulation has an impact.’

Motiv8 director Thea Ozenturk told Business News: ‘The gambling industry must recognise that some, albeit a small percentage of the population, are susceptible to developing a problem with gambling and this also impacts on that individual’s family in a variety of ways.

‘Gambling advertising has become a staple of the media, even taking over channels into the night and is a major market player in advertising some of our most popular sporting activities.

‘Some of this advertising is arguably aggressive in its relentless methods.

‘The portrayal that winning is easy is often recognised as a trigger to gamble among problem gamblers. Furthermore, advertising culturally normalises gambling which disguises the fact that it can become problematic for some.

‘GamCare Isle of Man is a free, confidential and non-judgmental service that provides support for anyone concerned about their own, or someone else’s gambling.

‘This service is funded by the gambling and gaming industry on the island and we are fortunate that many of the local companies recognise their social responsibility obligations to local residents.

‘Motiv8 is confident that local companies will embrace these new standards and that they continue to appreciate the importance of social responsibility in this sector.

‘GamCare Isle of Man regularly sees clients who have debt issues, health problems and psychological and mental health impacts. Similar impacts can also be seen in family members.’

The Advertising Standards Authority will use the standards, which come into force on April 2, when considering future complaints about adverts.

Warwick Bartlett of GBGC, a world-respected commentator on the gambling and gaming industry, said: ‘The Advertising Standards Authority (ASA) aims to curb the advertising of free bets and bonuses along with betting prompts inviting gamblers to play during a match.

‘So “bet now” and “free money” deals will be banned. The issue seems to be that the customers do not like having to make a deposit to have access to a free bet, and according to the ASA this encourages addictive play so restrictions will apply. The question is whether this will affect revenue for the companies, and will that in turn affect jobs.

‘On its own I doubt it, the industry is adaptable, and the ban will be imposed equally across all websites so no one will be left at a competitive disadvantage.

‘However any new website coming into the market will find it hard to establish enough revenue to break even. In effect it will not be harmful to the incumbents but could place start ups at a disadvantage.

‘The companies while not being able to prompt gamblers through the television will be able to send SMS prompts to the mobile phone. So sports books will be able to retain their existing customers but will lose the TV to market offers directly to potential new customers.

‘The ongoing problem for the industry is that regulation being imposed upon it is unrelenting.

‘A Corbyn government, if elected, [in the UK] has stated that when in power they would severely restrict advertising on TV, shirt sponsorship, and betting ads during football games. That would have serious consequences for the Isle of Man Asian sports books. While they are licensed on the IOM, they are also licensed in the UK, which enables them to advertise in the Premier League.

‘If they lost that, the UK and IoM would have no purpose for them other than from a headquarters perspective.

‘They could very easily license in a jurisdiction closer to home where they have lower costs, and a similar time zone in which to operate.

‘This would create a loss of income for the island and thus jobs. But it has not happened yet, and may not happen. However the regulatory direction of travel is anything but positive which is why some companies are turning their back on the UK market and looking at Africa, Asia and Latin America.

‘The UK is a significant eGaming market in the European context. The eGaming gross gaming yield in the UK is almost equal to the entire gross gaming yield for the whole of Europe.’

Advertising Association chief executive Stephen Woodford said the new guidelines were an ‘essential and welcome addition’ to advertising codes.

He said: ‘Our industry recognises the gambling sector is one which requires close, consistent and effective monitoring by our own regulatory bodies, as well as concerted effort through public education campaigns that use the ability of advertising to affect positive societal change.’

Ads must not play on individuals’ susceptibilities, such as financial concerns or self-esteem, or contain anything that might exploit vulnerable groups such as those with problem gambling issues.

The standards also make it clear that ‘money back’ offers must be in cash and not bonuses, and ‘risk free’ offers must not result in any loss to the consumer.

Elaine McCormack has dealings with the island’s eGaming industry in her role as senior risk consultant in KPMG’s advisory team.

She told Business News she had heard of ‘horror stories’ of punters having to bet as much as £102 before their match bonus could be released.

But she was confident the operators would ‘welcome’ guidance from the regulators.

It was important that everything was made clear for customers and ‘not hidden away in the small print.’

The UK Gambling Commission welcomed the news and programme director Ian Angus said: ‘The new advertising standards set clear expectations for the gambling industry.’

lThis Thursday [February 22], as part of Motiv8’s 40th year anniversary celebrations, Motiv8 is hosting a conference on the subject of addictive behaviours and mental health/dual diagnosis issues.

Consultant clinical psychologist professor Robin Davidson and consultant psychiatrists Dr Marina Hudson, Dr Kirsten Wafer and Dr Conor Davidson will present a variety of topics, including addictive behaviours and autism, to an invited audience of local professionals and interested parties.

The interest in these subjects has led to the conference being fully subscribed and Motiv8 is pleased that the Isle of Man is not only embracing the 40 year history of Motiv8, but recognising the need to discuss addiction and its impact on the community.