Executive summary
Marketing questions The full suite
The more valuable a market is in terms of GGR, The lesson for regulators is slightly different.
the more it moves into the spotlight and this As the progression of online casino in each of
is clearly the case when it comes to the area these markets shows, the more a market is open
of online gambling marketing practices. All of to the full suite of online gaming products, the
the markets contained within this instalment of more likely it is to succeed in terms of gaming
Market Monitor display the shared characteristic revenues, taxes and channelisation.
of increased spending on marketing, and
particularly advertising.
Though more anecdotal than strictly
Attractive regulated markets will always beat
unregulated offerings if the perceived benefit of
offshore operations to the consumer is minimal.
quantified, this increased advertising has gained The greater the discrepancy between the two,
the attention not only of the target customers the more the regulated market will struggle.
but also politicians and anti-gambling activists. As much as this is obviously the case in terms
This is certainly the case in the UK, where the of product availability – an issue that those
issue of the prevalence of gambling adverts, looking at the US might ponder – it is also an
particularly around sporting events, has been issue in marketing.
raised in parliament.
In Denmark a similar outcry has led to a
While moves by regulators to limit the
advertising of online gambling might have
package of measures being introduced to limit a populist appeal, they do run a certain risk.
bonuses and bonus requirements. First, they might limit the advantage gained
Though there has yet to be any similar moves
by regulated entities in terms of the opportunity
in Spain, it can be seen from the first quarter to enhance their marketing. Second, they
analysis published by the Directorate General could also inadvertently allow unregulated
for the Regulation of Gambling (DGOJ) that operators the route to offering markedly
advertising spending in particular rose by nearly better bonus terms.
50% in the first three months of the year.
The industry needs to be aware that the
freedom to advertise should be approached
sensibly and with due consideration to wider
concerns than just the metric of new player
sign-ups. Responsible gambling issues are
moving further up the agenda and the sector
should pay heed to the smoke signals from
current and future online gambling jurisdictions.
iGaming Business Market Monitor • UK, Spain and Denmark • September 2018
3