The UK Gambling Commission published the results of its latest survey last week, revealing the impact gambling advertisements have on UK bettors. This has become a hot topic with the ongoing Euro 2020 tournaments as many expressed disapproval of the gambling ads that are broadcasted during Euro 2020 matches.
Last week, it was also announced that UK racing companies will benefit from the Sport Winter Survival Package of the UK government. Racing leaders in the UK will receive a £21.5 million loan to help them recover after the devastating effects of the pandemic.
Survey Reveals Major Impact of Gambling Ads on Gamblers
Last week, the latest survey published by the UK regulatory body showed the impact gambling advertisements have on the betting behaviour of UK bettors. A total of 6,258 participants took part in the Commission’s survey.
About 4,566 respondents reported gambling in the previous 12 months. About 34% of them stated that they were prompted to bet online via a social media post or another type of gambling advertisement. The survey also revealed that incentives like free bets and bonuses were most likely to encourage gamblers to bet money online, with 22% of respondents reporting gambling after receiving betting promotions.
The Commission’s survey also revealed that gambling-related ads seen on TV and across social media have each prompted 15% of respondents to place bets online in the past 12 months. Meanwhile, the direct marketing sector, sponsorships with sports teams, and newspaper ads have respectively encouraged 9%, 8%, and 7% of respondents to bet online.
Those who participated in the survey were also asked if gambling advertisements have affected in any way their gambling habits. About 52.8% of gamblers reported not being affected in any way by the gambling-related ads seen on TV or other traditional advertising media. Meanwhile, 13% of respondents reported being prompted to gamble for the first time after seeing gambling advertisements. Another 16.3% of surveyed individuals said to have increased their online gambling due to the gambling ads they have seen.
The survey also revealed that 14.7% of participants who have stopped gambling were prompted to start gambling again after they have come across such advertisements. Another 10.1% of respondents reported that gambling ads have prompted them to switch to another form of gambling.
It was revealed that one of the most successful methods to attract more gamblers is by offering incentives like free bets and money to spend. About 25.9% of respondents who have gambled in the last 12 months pointed to free bets as the reason to start betting for the first time. The same type of promotion has also prompted 18.6% of respondents who have previously stopped gambling to go back to their gambling habits.
The survey showed, however, that free bets had the least effect on changing the gambling habits of respondents, with 35.2% reporting to gamble more after receiving such incentives. Meanwhile, direct marketing like text messages, emails, and push notifications were much more effective with existing gamblers or respondents who have previously stopped gambling. Such advertisements prompted 21.8% of gamblers to increase their betting and 19.6% of respondents relapsed into gambling after receiving direct marketing ads.
UK Racing Funded with £21.5 million Thanks to Sport Winter Survival Package
Last week, the Horserace Betting Levy Board (HBLB) and leading racing companies in the UK announced that the HBLB will receive a £21.5 million loan thanks to the Government’s Sports Winter Survival Package (SWSP). This amount is set to help racecourses and participants in races to recover from the negative impact the Covid-19 pandemic had on the sport.
The Government’s package aiming to support racing in the UK was launched in the last few months of 2020. As this industry suffered huge losses during the pandemic, the SWSP promises to help the international competitiveness of the major British sport.
To help increase the participation in 2021 races, £7.5 million of the package will be invested in enhancing the prize pools for the upcoming year from July 2021. About 60% of the funds will be distributed to Flat racing and another 40% to Jumps, striving to support races of higher tiers and development races.
Novice and Maiden races will also benefit from the SWSP, with Flat races, Classes 3, 4, and 5 as well as Jumps, Classes 3 and 4 receiving over £3.5 million. There will also be additional funding for Black Type races like Flat, Group 2, 3, and Listed Races as well as Jumps, Grade 1 and 2.
Paul Darling, Chairman of the HBLB, announced that the SWSP loan amounting to £21.5 million will be used to support British races after they have been suffering huge losses during the pandemic. The ten-year loan, which is required to be paid between the third and tenth year, will have an interest charge of £2.6 million. The total amount that needs to be repaid amounts to roughly £24 million.