The province of Ontario has introduced a ban on the use of any pro athlete or celebrity in sports betting advertising in a new ruling that promises to shake up the marketing arm of the industry.
Online sports betting in Ontario has enjoyed a rapid rise in popularity since its legalisation in April 2022 and with a slew of new operators with extensive sportsbooks entering the space, the sector has seen an explosion in activity.
According to iGaming Ontario, wagers totalling $14 billion were placed in the first quarter of 2023 alone and similar figures have been posted since, highlighting the pace of the industry’s growth in Ontario.
However, the new ruling will attempt to stem the flow and make online sports gambling less appealing by removing celebrities and athletes from advertising channels in what could be the first of several moves to restrict operators’ aggressive marketing strategies.
AGCO makes important advertising ruling
The Alcohol and Gaming Commission of Ontario is behind the new advertising ruling and the AGCO first proposed the idea in early 2023, with plans to put the new restrictions in place for the following year.
Canadian Senator Martha Deacon also threw her weight behind the idea in Ontario when she called for nationwide rules to be introduced to combat what she described as a “torrent” of sports betting ads in the country.
Those rules came into effect on Feb 24 2024 and in their press release to mark the occasion, AGCO said the new guidelines “would help safeguard children and youth who can be particularly susceptible to such advertising content.
Adding further detail to the release, Tom Mungham, CEO of AGCO said, “Children and youth are heavily influenced by the athletes and celebrities they look up to. We’re therefore increasing measures to protect Ontario’s youth by disallowing the use of these influential figures to promote online betting in Ontario.”
What powers do the new restrictions have?
Ontario’s new ruling on sports betting advertisements bars the use of all athletes and celebrities – whether they are active or retired – from appearing in sports betting marketing and advertising material.
The ruling includes the banning of social media influences, entertainers and anyone considered “likely to be expected to appeal to minors”.
Up to this point, sportsbooks and online betting operators were free to feature anyone they liked in their marketing material.
Since the legalisation of the industry two years ago, a lengthy list of famous faces has been paid to represent betting brands including, NHL stars Auston Matthews and Connor McDavid, as well as legendary hockey figure, Wayne Gretzky.
Hollywood star Jamie Foxx also got in on the act with a high-profile advertising campaign for Bet MGM.
However, online sports betting advertisers will need to formulate new angles to market their products without their celebrity cameos.
Further sports betting rule changes to come?
The new ban on athletes and celebrities in sports betting advertising could be the first entry from a lengthier list of changes to come for the industry, however.
In May last year, the Canadian Mental Health Association recommended a complete ban on online gambling advertising and the proposal they submitted advised the introduction of a series of key restrictions on how betting adverts should be controlled.
They put forward a recommendation to limit iGaming advertising hours to when the exposure to children is minimal, while a push to include prominent information about the dangers of problem gambling on adverts was also advised.
In March this year (2024), Maru Public Opinions also put together an extensive poll on the issue which highlighted Canadians’ concerns about the direction the online sports betting industry had taken.
In their poll, 60% of Canadians said that they believed a nationwide ban on sports betting commercials was required, while a whopping 75% thought that young people needed protection from betting ads.
A further 72% of people polled said they feared that many young adults would fall into debt due to the easy availability of online sports betting.
With more pushbacks expected against the betting industry and how they market themselves, the introduction of a ban on the use of celebrities and pro athletes in sports betting advertising already feels like the opening salvo in a long-running saga.