Advertising blitz brings questions
All eyes will be on how sports betting ads will be regulated in Ontario
Shelley White doesn’t watch Raptors games like most fans.
The chief executive officer of the Responsible Gambling Council pays as much attention to the commercials as she does to what Fred VanVleet, Pascal Siakam and their teammates are doing on the court.
“My family and I are Raptors fans. We watch every game, and I’m very cognizant which gambling operators are advertising and how often they’re advertising,” said White, who also checks out the billboards when driving on the Gardiner Expressway. “Those big digital billboards, several of the ads (feature) gambling companies.
“That’s been the case for the past year.”
White and the council participated in the consulting process with the Alcohol and Gaming Commission of Ontario and iGaming Ontario to create advertising standards for the province’s regulated sports betting and online gaming industry, which opens in early April. Adam Seaborn, a Toronto-based media analyst, estimated this week that more than $100 million was spent on TV advertising in 2021 by gaming companies, most promoting free-to-play games.
That figure is expected to increase significantly in a regulated Ontario market crowded with sportsbooks, many of which are already operating in U.S. states with legalized betting — and unleashing massive advertising and marketing budgets.
That ad blitz isn’t going unnoticed. Writing for Forbes, law professor Marc Edelman recently criticized the New York Gaming Commission for its “half-hearted effort” in that area since the state’s market opened in January: “Beyond a few general rules pertaining to disclosing a problem gambling hotline, the (commission) has done very little to regulate advertising and promotion in this space.”
White said prospective operators in Ontario know regulations will be “much more stringent.”
“We’ve had many conversations with (key players) about the importance of having robust standards in place in anticipation of that massive increase,” said White, adding those discussions have involved Canadian media outlets expected to benefit from the influx of ad dollars.
Both Bell Media and Rogers Sports and Media, owners of TSN and Sportsnet respectively, declined to comment about their strategy for sportsbook and gaming advertising on their platforms.
In a statement to the Star, the AGCO’s deputy chief operating officer, Brent McCurdy, said the commission has developed ad standards for incoming licensed operators: “Ultimately, the goal of the AGCO’s standards around advertising is to protect vulnerable people and ensure marketing and advertising is truthful and does not mislead players or the public.”
Unlike New York, where sportsbooks were allowed to widely promote lucrative bonuses for new customers — Caesars Sportsbook offered a $1,500 first deposit bonus last month — operators in Ontario will be limited to offering bonuses and other inducements on their own digital properties and through direct advertising and marketing “after receiving active player consent.”
AGCO standards also prohibit ads that “feature celebrities or public figures whose primary appeal is to minors.” Sportsbooks have gone all in on endorsement deals with entertainers and ex-athletes. Wayne Gretzky, Kevin Garnett and Marshawn Lynch are among BetMGM’s “brand ambassadors.” Former NFL quarterbacks Archie, Peyton and Eli Manning have deals with Caesars Sportsbook.
“Celebrity deals are an easy way to break through, and celebrities — and their agents — are seeing a revenue stream that has been created,” said PSBX president and branding expert Baron Manett, who came up with the concept for the first Canadian poker championship on TSN in 2005. “It’s one thing to spend on a partnership. Now you have to create around it. When a brand does a deal with a celebrity, there’s a balance to making it fit.”
While expressing concern about the potential impact of brand ambassadors, White added that “these influencers can also be used in a positive way to provide that responsible gambling message.”