Online Casino Ban
Multiple states in India have proceeded to crackdown on online gambling operators in the last 18 months. The COVID-19 lockdown in India resulted in a massive spike in online gambling across India which has caused serious concerns for anti-online gambling campaigners.
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The South Indian state of Karnataka decided to introduce a Karnataka Police (Amendment) Bill, 2021 which looks to ban all forms of online gambling in the state. The state government was instructed by the Karnataka High Court instructed to either ban online gambling or regulated online gambling after hearing a public interest litigation (PIL) filing.
The PIL stated that residents in Karnataka were being taken advantage off by offshore gaming operators and as a result were accumulating huge gambling debts that caused numerous problems including gambling related suicides.
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The Karnataka government decided that it was in the best interests to ban online gambling and sports betting. The bill does not ban horse racing or the state lottery. The bill has since been approved by the State Legislative Assembly.
CAIT Objects To New Bill
The Confederation of All India Traders (CAIT) is the biggest organization that represents more than 40,000 trade associations across India and over 8 crore traders. CAIT sent in a letter to the chief minister of Karnataka Basavaraj Bommai. The letter asked the chief minister to make amendments to the new bill as it did not distinguish between games of luck and games of skill.
Praveen Khandelwal, Secretary General for CAIT said that their organization fully supported the ban on games of chance as it did not want to encourage gambling. However, games of skill should not be clubbed together with games of chance which is what the new law does.
The letter also pointed out that there were over 500 startup companies in the gambling and betting market that would no longer be able to survive with the new bill. Khandelwal urged the government to come out with new laws and gambling regulation that will allow games of skill to be regulated.
Khandelwal said that Indian gaming market was flourishing and these 500 companies had enormous potential to grow. The new law would not only wipe them out but also discourage other startups from venturing into the online gambling industry. The Karnataka government is yet to provide a response to the letter from CAIT.
Transport for London is considering imposing a ban on all gambling ads throughout its advertising network. The move comes after an order from London Mayor, Sadiq Khan, who pledged to ban gambling ads on the Tube as one of his re-election promises earlier this year.
London mayor Sadiq Khan has already banned body-shaming and junk food ads on the capital’s travel network. ©jcrealtygroupnc/Pixabay
Campaign Promise
Transport for London has confirmed that it is looking into how a ban on gambling ads could be implemented. The Green Party’s Siân Berry recently raised the issue at a meeting of the London Assembly, reminding the mayor to honor his election campaign pledge.
Khan’s “Sadiq for London 2021” manifesto stated that if re-elected, he would instruct TfL to bring forward plans to ban what he described as “harmful gambling advertisements” on the network. The ban is hoped to combat levels of problem gambling in the capital.
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The mayor has already banned body-shaming adverts, as well as ads for foods that are high in fat, salt and sugar, on the TfL network. Those ads were banned due to their negative impact on the health of Londoners. A ban on gambling ads on London transport takes a similar public health approach.
The ban on junk food adverts across all TfL networks is estimated to have cost between £13 million and £25 million a year in lost advertising revenue. A ban on gambling ads across the network will also cost it dearly, although the network has stated that its financial impact is difficult to assess, as many factors affect advertising revenue every year.
A ban will come as a blow to TfL’s finances, as it continues to grapple with the loss of revenue during the coronavirus pandemic. However, use of the transport network is slowly increasing, and is now at its highest since the start of the pandemic, 51% against pre-pandemic levels.
Sadiq Khan was re-elected as mayor of London earlier this year, in May, winning a second term and beating Conservative candidate Shaun Bailey 55.2% against 44.8%. In third place was Green Party candidate Siân Berry, who took 7.8% of the vote. Now Berry is keen to remind Khan to act on the campaign promises that won him the election.
Gambling Ads Increasing
At the London Assembly meeting, Berry questioned the mayor of London on whether it was appropriate that gambling promotions on the capital’s transport network had increased, while many Londoners are facing financial struggles. Earlier in September, she also raised the issue writing for the Hampstead and Highgate Express, stating:
“With so many people suffering during the coronavirus crisis, the lure of a life-changing win will only be more tempting. That’s why I’m very concerned the gambling industry has so many ways to promote itself, both through advertising and growing its presence on our high streets. “
Berry went on to describe how she supported residents in Enfield in preventing a gambling shop from opening on Green Lanes. With Labour colleagues and local MP Bambos Charalambous, she took part in a well-attended protest. Charalambous is also seeking changes to licensing laws, so that councils are granted more powers to refuse new gambling licenses.
However, the Merkur Slots Bingo Premises Review, which was due to take place in June, had to be cancelled after a legal challenge was issued against Enfield Council. Charalambous has vowed to continue to campaign with residents and councilors to oppose the new gambling venue.
Berry, who is currently the acting leader of the Green Party of England and Wales, also pointed out an increase in the number of adverts on the Tube for online gambling, spread betting and “quick win” investments. These ads seemed to peak during the Euros, despite the mayor’s promises to restrict them.
She added that on questioning the mayor in July, he said that 49 campaigns for gambling products had already been shown on the Tube, during the first quarter of the financial year. That figure suggests a significant increase on last year, in which 118 gambling campaigns were shown over the entire year.
Calls for Tighter Regulation
Berry has continued to press the mayor of London on the issue, and he has now offered a written response addressing her concerns. In it, he shared her apprehensions and confirmed that he had formally asked Transport for London to “bring forward” plans to place a ban on gambling adverts.
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As of yet, TfL has not announced a timeframe for when the ban will be put in place, but it seems in all likelihood that it will go ahead. In a statement, it said that it is assessing how the ban could be implemented and is engaging with stakeholders on the issue.
The transport network is also facing pressure to ban adverts promoting “risky investments”, however this is a more complex issue to navigate as they do not fall under a fixed category. Earlier in 2021, an advertising campaign from a cryptocurrency trading platform was pulled following a review. The campaign, which encouraged consumers to invest in Bitcoin had initially passed TfL’s checks.
However, the Advertising Standards Authority upheld two issues raised by four complainants. The advert, which featured a cartoon depiction of a Bitcoin, stated “If you’re seeing Bitcoin on the Underground, it’s time to buy”. Three complainants thought the ad was misleading and that it failed to highlight the risk of the investment. Another questioned whether the ad took advantage of consumers’ inexperience.
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The ASA upheld all complaints and Luno Money was ordered not to use the advert again. It was told to ensure that future marketing communications clearly state the risks associated with investing in Bitcoin. Luno agreed not to show the ads again, and that future ads would comply with appropriate risk warnings.
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However, the case has sparked anger amongst campaigners and consumer groups, who have urged TfL to raise its advertising standards. They have raised concerns over why the network approved the advert in the first place and are pushing for tighter regulation on TfL advertising.