New Advertising Challenges for Online Gambling in Ontario

Companies offering online gambling services in Ontario will need to get creative with their advertising strategies as the provincial regulator, the Alcohol and Gaming Commission of Ontario (AGCO), implements new rules. These rules will ban athletes, celebrities, and anyone likely to appeal to minors from promoting gambling services.

The updated regulations also prohibit entertainers, social media influencers, role models, and cartoon characters who might appeal to young Ontarians from appearing in ads. This move follows the widespread legalization of online betting in 2022, which has seen a significant increase in gambling-related advertisements.

Shifting Advertising Strategies

"The new rules will likely push operators to be more creative," said Steven Salz, CEO and co-founder of Rivalry, an esports-focused betting company, in an email statement. The industry has historically relied heavily on endorsements from celebrities and athletes.

These restrictions will apply across all platforms, meaning familiar faces like Wayne Gretzky, Auston Matthews, and Connor McDavid will no longer feature in these promotions. Advertising experts suggest that companies will need to leverage technology and other proven marketing strategies to maintain visibility.

Impact on Operators

William Woodhams, CEO of British bookmaker Fitzdares, has already navigated similar changes in the UK. His company had to adapt after a similar ban on athlete participation in gambling ads was implemented there last year.

"We shot a video with Fulham [F.C.] players the day before the ban!" Woodhams told CBC News via email. Fitzdares replaced them with former players and pundits.

Fitzdares, which also operates in Ontario, may need to adjust its advertising strategies based on AGCO's new rules. "Our current advertising uses vintage sports images, which we hope will not infringe the rules," Woodhams said, adding that the company is seeking clarification on certain points.

Paul Burns, president of the Canadian Gaming Association (CGA), also seeks more clarity on the new regulations. He notes that industry members are awaiting guidance on specifics, such as defining "athlete" and determining who might appeal to children.

Adapting Tactics

Marketing expert Tony Chapman compares the situation to how tobacco companies adjusted their marketing over time. When traditional methods became restricted, tobacco companies had to innovate, using more subtle and creative strategies.

Chapman suggests that Ontario's incoming regulations are overdue but warns of potential loopholes allowing athletes to shift from promoting gambling to endorsing responsible gambling. He emphasizes that this should be avoided.

Chapman also predicts a shift towards "hyper-personalization" in advertising, driven by technology. Using AI and data, gambling operators can tailor messages specifically to individuals, enhancing engagement and targeting both new and veteran gamblers.

Broader Implications

Natalie Coulter, an associate professor of communication and media studies at York University, notes that industries facing scrutiny—like tobacco, plastics, and oil—often shift responsibility onto individuals while downplaying corporate accountability. This tactic distracts from broader policy changes, she says.

Timeline for Implementation

The new regulations in Ontario will take effect in late February, missing the upcoming NFL season and most of the NBA and NHL seasons. Bruce Kidd, a former Olympian and professor emeritus of sport and public policy at the University of Toronto, sees this delay as problematic.

Our Conclusion

As Ontario enforces stricter advertising rules for online gambling, companies will need to innovate their marketing strategies. While this presents challenges, it also opens opportunities for creative approaches that comply with regulations and engage consumers effectively.