News Analysis: Gaming gives TV muted welcome

gaming fraternity.

Last week, as part of the Act, the Committee of Advertising Practice
(CAP) and Broadcast Committee of Advertising Practice (BCAP) unveiled
joint proposals for guidelines relating to gambling advertising, which
will remain open for consultation until September. Under the proposals,
firms including casinos, bookmakers and gaming websites, will be allowed
to advertise on broadcast media for the first time.

Current legislation bans most betting and gaming ads from TV and radio,
and casinos are not even allowed to use bold type when listing their
phone numbers in telephone directories. However, the rules have become
more relaxed over the past few years, with Ofcom permitting gambling
firms to sponsor TV shows and some lotteries being able to run ads.

The CAP/BCAP proposals state that gaming firms must protect young people
and 'other vulnerable persons' from being exploited by their
advertising. This means brands will not be permitted to schedule ads
during programmes targeting young people.

Advertising content will also be prohibited from suggesting that
gambling can provide an escape from professional, educational or
personal problems, such as loneliness or depression. Nor will it be able
to promote gambling as a solution to financial concerns or a way to
enhance personal qualities, such as sexual prowess or self esteem.

In terms of scheduling and the portrayal of consumer behaviour, then,
the proposals, which also limit the ads to featuring people over the age
of 25, are almost identical to the guidelines relating to the promotion
of alcohol.

Not surprisingly, the gaming industry, keen for more flexibility, says
it is prepared to work within the proposals. 'We take the social
responsibility aspect very seriously,' says a spokesman for the Tote. He
adds that most big UK gaming operators are members of, and make
donations to, Gamcare (a charity that helps those with gambling
problems).

Not everyone is happy with the proposals, though. Community groups are
angry that while tobacco advertising has been progressively outlawed,
rules on gambling, which in recent months has been consistently
highlighted for its addictive nature, appear to be slackening.

'We are concerned that the increased promotion of gambling, and growth
of gambling opportunities could exacerbate debt issues and the potential
for gambling addiction,' says a Citizens Advice Bureau spokeswoman.

Institute of Practitioners in Advertising (IPA) senior legal manager
Chris Hackford dismisses this argument. 'Placing a bet isn't going to do
you any harm,' he says. 'But one cigarette is bad for you because it is
physically addictive, so the BCAP/CAP and government approach is
right.'

Hackford also points out that if these proposals are approved, the
gaming industry will be properly regulated and companies will need to be
licensed in order to advertise in the UK.

However, broadcast advertising may be the least of online gaming firms'
concerns. Over the past couple of years, the marketing spend of the
industry's major players has slipped considerably.

This has been due mainly to a number of flotations among gaming
operators. Although initially successful, these flotations were swiftly
followed by a sudden dip in share price Meanwhile, the bigger,
bricks-and-mortar operators have been suffering from an erosion in
numbers of new players.

Moreover, agencies and broadcasters anticipating a flourish of business
leads should be aware that marketers at gambling firms say they are
unlikely to rush into the world of broadcast advertising, with many
stressing that they will need to be convinced it is right for them.

'It is very early days and we will have to give the opportunity serious
consideration,' says a spokesman for the Tote. 'If broadcast advertising
fits with our marketing strategy and will drive business, then we will
consider it. We already have a TV presence through our sponsorship deals
with Channel 4, but expanding our TV presence will depend on the final
regulations,' he adds.

'Although the gaming industry is enjoying a higher profile and becoming
a more mainstream activity, we are unlikely to be buying a slot in
Coronation Street,' adds William Hill marketing director Chris
Edgington. 'Only 5% of the UK population regularly has a flutter, so
that sort of strategy wouldn't meet our objectives.'

Stanley Leisure is also wary of jumping into the broadcast arena. 'We
are not sure whether we will advertise on TV and we are unlikely to be
the first to do so,' says the casino operator's chief executive Bob
Wiper.

Although welcomed by many in the industry, the CAP/BCAP proposals come
as no surprise and are unlikely to result in an influx of gambling
advertising business. Until they are clarified and become compulsory,
firms seem more than content with ther current marketing activities.

'It is not quite time for the Daily Mail to start planning its
anti-gambling campaign,' quips William Hill's Edgington. But perhaps it
is exactly this threat of negative publicity that is prompting such a
low-key response to what is probably the biggest revolution in gambling
promotion.

DATA FILE - GAMING FIRMS' PROMOTIONAL SPEND



2005 2004 04-05

(pounds) (pounds) % chng

1 Cassava Enterprises 24,764,529 28,078,787 -11.8

2 Ladbrokes 2,733,250 4,315,971 -36.7

3 William Hill Bookmakers 2,565,232 2,728,721 -6.0

4 Tote 1,819,726 2,156,242 -15.6

5 Coral Racing & Bookmakers 2,124,337 1,633,388 30.1

6 Victor Chandler Bookmakers 1,539,965 1,831,402 -15.9

7 Bet365 1,562,385 1,418,077 10.1

8 Blue Square 1,107,537 1,138,623 -2.7

9 BetFair 456,027 1,570,762 -71.0



Source: Nielsen Media Research