UK Gambling Companies agree to stop in-game TV Advertising
According to the BBC, betting advertisements during live sporting events will soon be a thing of the past. Thus, in a voluntary ban, UK Gambling Companies agree to stop in-game TV Advertising to do their part for society According to Pay Per Head Industry expert, the ban will take effect this month or early next year.
The reason behind this voluntary ban from UK gambling firms is due to political pressure. This has led to the Remote Gambling Association making a deal to agree to a “whistle-to-whistle” TV advertising ban. Some of the better known companies that are part of the RGA include Bet365, Ladbrokes and Paddy Power.
In addition, the TV ban will ensure that no gambling advertisement will be shown before and after a game is shown. However, the report makes no mention of a specific time frame for it. In essence, football will receive the biggest hit from the ban and horse racing will actually be exempt from it.
How the ban will affect these Gambling Companies
Gambling industry experts believe that the ban will have a financial impact on UK gambling companies. However, the proposal for the TV gambling advertisement ban still needs to get a full agreement by the RGA. Thus, they are still meeting with lawyers about the prospective change today.
Immediately after the announcement was made, it made a negative impact on shares of gambling stocks. These include William Hill (Frankfurt: 633847), Betfred and Paddy Power (EUREX: 27913021.EX).
Furthermore, the ban will also affect TV network as last year along, the gambling industry spent £1.5bn on marketing. In addition, industry experts believe that this ban could open the door that limits marketing strategies from gambling companies. These include, billboard advertising, t-shirts, memorabilia’s and even logos on team sponsorship.
This last one could place a heavy damper on team revenue. This is because 60% of Premiere League and Championship football clubs have gambling company shirt sponsorship.