GME3: Gambling Ads Go Dutch, Twitch Bets on Licensed Streams, and FTC’s Ad-Visory Update

Attention Ontario registered gambling operators, Twitch streamers, and influencers! This week’s GME3 looks at how the Netherlands’ ban on gambling advertisements could forecast the future of Canadian gambling advertising in light of the upcoming Bill S-269, how Twitch’s prohibition of unregulated gaming providers from their platform makes obtaining registration even more important, and finally provides an overview of new FTC regulations regarding influencer marketing that is relevant to all business owners. 

Gambling

Gambling Ads Go Dutch

As of July 1, 2023, the Netherlands has banned gambling advertisements through most media channels, including television, radio, and print, as well as advertising in public spaces, such as billboards and bus stops. Furthermore, the country plans to put a stop to all gambling sponsorship of events and venues by 2025. 

Going forward, the only medium that will allow gambling advertisements will be targeted ads – for example, advertising through streaming services, social media, direct mail, and via online gaming platforms. The goal of these changes is to ensure that gambling ads reach their target audience (people over the age of 24) and reduce gambling ad exposure to minors and other more vulnerable demographics. 

While the Netherlands’ approach may seem extreme, we’re seeing a lot of jurisdictions tackling the issue of rampant gambling advertisements right now. In the UK, for example, gambling platforms must have a license with the Gambling Commission to advertise at all, and there are stringent rules regarding the content that can be included in ads. Canada currently has its gambling ad-related legislation being reviewed by the Senate (which we wrote about last week) and an announcement from the Ontario regulator regarding changes to gambling ad rules is imminent. Looking at how other jurisdictions are addressing gambling ads can help forecast what our gaming landscape could look like in the coming years.

Media

Twitch Bets on Licensed Streams

Earlier in June Twitch CEO Dan Clancy announced that the company would only allow content from licensed and regulated iGaming sites to be streamed on their platform. The aim of this prohibition is to curb the popularity of unregulated, offshore gambling websites. However, it’s worth noting that the ban only extends to online casino-style games that involve slots, roulette, or dice. Unregulated poker platforms are still allowed to be streamed on Twitch. 

Even regulated physical casinos are beginning to get in on streaming as a marketing platform. Popular casino proprietors MGM Resorts have a new streaming and video policy, which allows people to use their phones at game tables for photos and texting (so long as they don’t photograph any gaming equipment or slow down the game). For now, there’s still no streaming allowed at tables, and any content creators must secure permission from MGM before streaming in an MGM casino. However, it’s interesting to see how longstanding rules can change as a result of the sheer popularity of gambling streamers.

The rules around streaming and iGaming are currently in a state of flux, but it’s clear that new media advertising through Twitch and other social media platforms should play a key role in your company’s marketing strategy. Based on Twitch’s new policy, and in line with emerging trends, it seems more and more likely that obtaining a gaming license will be necessary to promote your brand across popular social media channels. If you’re considering applying for registration in Ontario or elsewhere, reach out to Jack at jack@gmelawyers.com and we can answer any questions you have.

Entertainment

FTC’s Ad-Visory Update

The Federal Trade Commission (FTC) has released an updated version of its Endorsement Guide, which provides guidance to businesses that may want to use reviews or celebrity endorsements to advertise. Being the first update to the Guide since 2009, the FTC aimed to amend its guidelines to reflect the modern advertising landscape, including platforms like social media and online reviews. 

The new guidelines make a number of changes, including: 

1. articulating a new principle regarding procuring, suppressing, boosting, organizing, publishing, upvoting, downvoting, or editing consumer reviews so as to distort what consumers think of a product; 

2. addressing incentivized reviews, reviews by employees, and fake negative reviews of a competitor; 

3. adding a definition of “clear and conspicuous” and saying that a platform’s built-in disclosure tool might not be an adequate disclosure; 

4. changing the definition of “endorsements” to clarify the extent to which it includes fake reviews, virtual influencers, and tags in social media; 

5. better explaining the potential liability of advertisers, endorsers, and intermediaries; and 

6. highlighting that child-directed advertising is of special concern.

The FTC also released an update to its Endorsement Guides: What People are Asking, a document that aims to provide answers to frequently asked questions. This version includes guidance for influencers on disclosing material connections in endorsements, further guidance regarding online review marketing, and more.

If you’re an influencer, an agency, or a business using influencer marketing and reviews, be sure to review the new guidelines, and if you have any questions about your approach to new media marketing reach out to Zack Pearlstein at zack@gmelawyers.com.