Study Suggests Canadian Regulators Should Slow Down on Gambling Rules

A year after legalizing online gambling in Canada, complaints about the frequency and content of gambling ads have become widespread. A new study suggests that regulators might be rushing to create rules without enough evidence to back them up.

The Canadian Gaming Association released a study on September 25, showing that gambling regulations in Canada are developing too quickly. The study argues that regulations are “evolving at a faster rate than the accompanying evidence base,” which could lead to rules that don’t properly address the issues or are “insufficiently nuanced.”

The study, conducted by GP Consulting, included researchers from Eilers & Krejcik, UNLV’s International Gaming Institute, and Washington State University. It analyzed 41 different studies on online sports betting and casino advertising, aiming to inform responsible gambling regulations.

Concerns Over Fast-Moving Regulations

Since February, new rules in Canada have banned celebrities and athletes from appearing in gambling ads. The Canadian Parliament is also considering restricting when gambling ads can be shown on TV or even banning them entirely. Similar regulations are under review in the U.S. and Australia.

The study’s authors recommend targeted research in several areas, including responsible gambling advertising and tracking exposure to ads. They stress that Canada, along with other countries, should take a more flexible approach to future regulations.

Five Key Themes for Safe Advertising

The study identified five essential themes for creating safer and more effective gambling ads:

1. Good Taste and Honest Advertising: Ads should not make false promises or encourage excessive gambling. They should promote responsible play.
2. Avoid Targeting Vulnerable Groups: Youth and vulnerable populations should not be the focus of gambling ads.
3. Celebrity and Sports Advertising: While Ontario already bans celebrities and athletes in ads, this should extend to the broader Canadian market, unless promoting responsible gambling.
4. Direct Marketing Limitations: Promotions should only target consumers who have opted into direct marketing. Terms like “free” or “risk-free” should be prohibited.
5. Affiliate Accountability: Operators should be responsible for their affiliates’ actions in marketing.

These themes are already being applied in markets like Denmark, Michigan, New Jersey, Ontario, and the United Kingdom. The UK is considered the strictest, with Ontario following closely behind.

Study Calls for a Flexible Approach

The authors believe that Canadian regulators should remain adaptable in how they shape future gambling laws. “The approach to regulation in Ontario was shaped in part by the necessity to integrate grey market operators into a regulated framework,” the researchers wrote. They pointed out that the gambling market is constantly evolving and regulations need to adjust accordingly.

Ontario was the first province in Canada to launch regulated digital gambling in April 2022, and Alberta appears to be next in line. A recent study by Deloitte has shown that Ontario’s regulated gambling has been highly profitable for the government, which has exceeded $1.24 billion in government revenue in its second full year since launch.

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