Rules on non-paid-for advertising and marketing will now apply to gambling operators not based in the UK.
The UK’s Advertising Standards Authority (ASA) has announced a significant change to the CAP Code, closing a loophole that previously allowed licensed gambling operators registered outside of the UK to avoid certain regulations on advertising and marketing.
The CAP Code, the shortened name for the Code of Non-broadcast Advertising and Direct and Promotional Marketing, covers activities in the UK. It is enforced by the Committee of Advertising Practice and regulated by the ASA.
From 1 September this year, operators subject to licensing conditions that require compliance with the CAP Code will face the same rules as businesses located in the UK.
This means all UK-licensed operators must ensure communications on websites, apps and cross-border platforms meet the relevant criteria, regardless of where they are registered. Rules also apply to content on websites with a ‘.uk’ top-level domain and paid-for marketing communications from or by marketers targeting players in the UK.
Previously, operators with a non-UK registered address were not covered by certain regulations in the CAP code. This primarily related to non-paid-for marketing communications targeted at UK consumers, including on social media.
Flutter Entertainment, Bet365 and Entain are among the major licensed companies that are registered in jurisdictions outside of the UK. Many UK-facing operators have their businesses registered in either Gibraltar or Malta.
ASA pledges to protect consumers
Announcing the amendment on Monday, the ASA said this change will provide greater protection to players in the UK and will improve “regulatory consistency” within the market.
“In practice, this extension brings into scope social media marketing posts from licensed gambling operators targeting UK consumers, regardless of where the operator is based,” the ASA said.
“The change ensures that such ads are subject to the same rules and standards as those from UK-registered operators, supporting consumer protection and regulatory consistency.
The ASA said the Gambling Commission’s licensing conditions required compliance with the CAP Code.
While new rules are already in place, the CAP has invited comments and feedback on the impact of the remit extension. This will run for a period of three months, until 1 December, ahead of a formal review of the change.
The change will only apply to those within the gambling sector. It does not consider the amendment will extend the code to other categories of advertisers without a UK-registered address.
‘Overdue’ change in advertising rules
Dr Raffaello Rossi, senior lecturer in marketing at University of Bristol, welcomed the change in a post on his LinkedIn. Rossi lobbied for the change, as well as others in gambling advertising rules. He said it is a an “important, though long overdue” step to improve consumer protection.
“We highlighted this massive loophole – that gambling brands could simply move their registered office abroad and thereby completely bypass UK social media advertising regulations – in several letters and meetings with the ASA over the past two years,” he said.
“This is an important – though long overdue – step for consumer protection and regulatory consistency.”