Policy Updates

A new lawsuit has been filed against tech giants Google and Apple, alleging their involvement in the distribution of illegal gambling software across New Jersey and other states in the United States. The lawsuit, filed on November 27, 2024, targets Apple and Google’s involvement in hosting casino and sweepstakes apps, a growing industry embroiled in controversy due to strange operating models and regulatory variations. Manipulative practices and unlawful enterprise The legal documents assert that these platforms engage users with “Game Coins” for play and offer “Sweeps Coins”, which are allegedly redeemable for cash and prizes but frequently withhold payouts based on arbitrary reasons. The primary complainant, Julian Bargo, alleges that his financial wellbeing has been severely impacted by the exploitative methods used by these sweepstakes casinos. This particular case is noteworthy for its reliance on the federal RICO Act (Racketeer Influenced and Corrupt Organisations), alleging that Google and Apple are operating in conjunction with a long-standing criminal syndicate. The lawsuit has brought attention to lawmakers’ initiative to introduce regulations on online sweepstakes gaming via the Model Internet Gaming Act. In contrast, industry leaders like Australia-based Virtual Gaming Worlds have thrived in this market. Revenue figures and sponsorships With net earnings totalling £254 million in 2023, as per information provided by iGaming Business, Virtual Gaming Worlds was able to invest in prestigious sponsorship opportunities and team up with influential celebrities for promotional purposes. Platforms that offer sweepstakes casinos have achieved impressive financial gains, highlighting the high stakes at play economically. While critics argue that social casinos essentially turn smartphones into unregulated gambling devices, most platforms appear to operate within current applicable laws, which vary by state. Unlike traditional brick-and-mortar casinos, sweepstakes operators successfully evade paying gaming taxes and often establish their operations in jurisdictions outside of the country. This legal action has brought into focus the role that prominent tech corporations play in allowing and potentially profiting from the operations of these unregulated gaming platforms.

The computer giant Google has revealed plans to lift its ban on targeted and tailored advertisements for social casino games, a move that is expected to cause a stir in the online gaming industry. This transition would enable social casino operators to post adverts on popular websites and apps, increasing revenue. As part of a larger overhaul to its advertising standards, this decision is expected to reshape the environment for both advertisers and consumers, providing greater chances for targeted marketing. The decision is expected to boost competition in digital advertising, particularly gaming. Casino ads return; NHL players face backlash Google will remove social casinos from its restricted “gambling” category on December 4, 2024, allowing operators to place targeted advertisements on popular websites and applications. This maneuver is applicable to a number of social casino games, such as roulette, poker, and slots. According to a survey conducted by The Athletic, since sports betting became legal in the United States, almost one-third of NHL players have encountered more harassment related to the activity. Abusive comments, such as requests to return lost wagers or even threats of death, have been widespread. This increase in animosity draws attention to the negative and harmful aspects of sports betting’s expanding power. Implications of Google’s advert policy change Google may increase problem gambling as a result of its decision to lift the restriction on social casino adverts, but it will still police its Personalised Ads policy and suspend or warn users who violate it. All businesses will be able to run customised adverts in 2025 when Google’s advertising guidelines are completely relaxed, which includes this adjustment. It is anticipated that the online gambling sector will gain from social casino operators’ improved ability to target adverts, which will boost player engagement, income, and industry expansion worldwide.

Aiming for a 2025 schedule rather than 2024, Australia has delayed its proposed revisions to gambling advertising regulations. Some authorities have acknowledged delays, citing issues in the Senate and worries in the sports community, despite earlier promises of improvements made by ministers, notably Communications Minister Michelle Rowland. As we have seen in the past, bad policy design leads to bad outcomes, which is why it’s important that we get these reforms right a spokesman for Communications Minister Michelle Rowland Anika Wells, the minister of sport, stressed the need for further time to address dissenting views, while Andrew Leigh highlighted the challenges of obtaining the required political backing to enact the law. Government delays prompt criticism on reforms The Australian government’s inaction on important topics has been openly criticised by independent politician Andrew Wilkie. He has specifically called attention to the government’s inability to sufficiently address Indigenous concerns after the Voice vote. Wilkie has been frustrated by the lack of progress in resolving systemic injustices in Indigenous communities. The government’s lack of courage in tackling lobbying reforms was attacked by Senator David Pocock, who emphasised the importance of openness and public confidence. One hour before and after live sports, gambling advertisements are proposed to be banned. a comprehensive ban on all forms of advertising for online gambling, to be introduced in four phases, over three years, commencing immediately The standing committee on social and legal policy affairs Reducing the visibility of betting advertisements on television is the goal of other proposals. But as of right now, the government is unsure of the specifics and has no intentions to outright forbid gambling adverts on TV or radio. Discussions surrounding these concepts are ongoing, and further information is anticipated. Conclusion The delay in Australia’s gambling advertising reforms allows Google Ads for gambling to continue under current rules, maintaining access to broad advertising opportunities for now. However, emerging proposals for phased advertising bans and stricter regulations indicate potential future restrictions that could significantly impact targeting, content, visibility, and compliance costs for gambling-related campaigns. Advertisers should proactively monitor developments, thoroughly assess the impact on Google Ads strategies, and adapt campaigns to comply with evolving policies effectively.

The Indonesian government is taking a hard stance against online gambling, with Minister of Communication and Digital Affairs Meutya Viada Hafid reaffirming the country’s commitment to eradicating the practice. Speaking at an event in Jakarta, Hafid outlined the ministry’s efforts to block illegal content using artificial intelligence (AI) and task force collaboration. Over five million pieces of online casino material have been removed by the government since 2017. Blocking online gambling content The government have blocked public access to a vast number of content items hosted on popular sites including Meta, Google, and Twitter, along with unauthorised internet protocols. Budi Arie Setiadi, Minister of Communication and Informatics from July 2023 until October 2024, said that “gambling is an illegal act based on regulations.” The main target for blocking e-wallet accounts is online gambling bookies. In addition, the flow of money to online gambling players will be the next target Budi Arie Setiadi To prevent online gambling, the task force established in June 2024 is cooperating with other government entities to scrutinise and investigate potentially illicit financial dealings. Financial institutions were encouraged by Hafid to join forces and help curb the issue of online gaming. She urged those still involved in financial transactions supporting online gambling to work together in monitoring and putting a stop to this problem. Google Ads is a willing collaborator in the effort to curtail online gambling in Indonesia. The updated Google Ads policy for 2024 is supportive of local restrictions and works hand in hand with the government in implementing required clearances and verification. According to Hafid, within the short period between 20 October and 18 November 2024, official statistics show that they have restricted access to 2.7k of Google and YouTube ads. Journalism: raising awareness and influencing policy Formerly a journalist before being in government, Hafid believes that journalism plays a crucial role in raising awareness about the issue and influencing policy. The Komdigi Journalism Awards Summit recognised and honoured outstanding projects that effectively brought attention to the far-reaching societal consequences of online gambling in order for them to notify the public of this problem. The Indonesian government claim that, in 2024 alone, around 8.8 million citizens have been involved in online gambling. What’s more disturbing is that about 80 per cent of the figure are from lower-income communities, making it a grave national concern.

Caerphilly Council in the UK has introduced a series of proposals to strengthen regulations for adult gaming centres, with an emphasis on child protection and responsible gambling. While these measures primarily target physical establishments, they highlight broader implications for gambling adverts, particularly online. As local authorities tighten regulations, platforms like Google Ads may face increased scrutiny to ensure compliance with both local and global advertising policies. Reducing visibility of gambling advertisements The council plans to obscure gaming centre entrances with window film or opaque panels to reduce visibility and prevent minors’ exposure to gambling. This reflects broader concerns that also apply to digital adverts. Google Ads has updated its gambling policies, limiting adverts in regulated areas and requiring compliance with local standards. Recent Google Ads gambling policy updates have tightened advert placement rules, especially in the UK, with limits on targeting minors and requiring responsible gambling disclaimers. Caerphilly’s approach could serve as a model for expanding restrictions on gambling adverts, including online. Aligning advertising and strengthening enforcement The council’s licensing objectives prioritise public safety and vulnerable groups, aligning with Google Ads’ responsible gambling guidelines. Google’s 2024 updates reflect a trend towards aligning digital ads with local regulations. Google now requires local certifications and adherence to regional restrictions. As Caerphilly pushes for child protection, platforms will likely enhance enforcement to prevent rule-bypassing. Caerphilly’s risk-based enforcement strategy mirrors Google’s proactive measures, with tools to identify non-compliant adverts and automated systems to block them. These efforts align with Caerphilly’s focus on public safety and child welfare. Councils may push for stricter oversight to ensure compliance with updated Google Ads policies. A holistic approach to responsible gambling The updated gambling policy of Caerphilly Council emphasises community well-being, crime prevention, and public health, aligning with new online gambling advert standards. Google now requires advertisers to promote responsible gaming and support resources, highlighting the need for consistency between local regulations and global advert policies. As Caerphilly finalises its gambling policy in January 2025, its initiatives may influence broader advertising practices. Google Ads gambling policy updates reflect how regional regulations shape global platforms’ policies. These changes signal a shift in the gambling industry, with advertisers navigating complex rules whilst promoting responsibility. By prioritising child protection and public health, authorities and platforms like Google set a standard for ethical advertising.

Google has announced updates to its gambling advertising policies, with significant implications for operators targeting audiences in Germany. The changes align with the country’s stringent regulations on gambling advertising, reflecting efforts to curb illegal activities and promote responsible advertising practices in the gaming industry. Under the updated policy, only licensed operators approved by the German gambling authority, the Gemeinsame Glücksspielbehörde der Länder (GGL), are permitted to run adverts through Google’s platform. Advertisers must provide proof of compliance with German law, ensuring their offerings align with strict guidelines that prioritise consumer protection and prevent gambling-related harm. This move is seen as a response to growing concerns over the prevalence of unlicensed operators using digital advertising to reach consumers. Stricter rules for gambling ads The updated policy also introduces more stringent keyword restrictions for gambling adverts. Advertisers are prohibited from targeting minors or promoting misleading offers that could encourage excessive gambling behaviour. These measures are expected to significantly reduce exposure to illegal operators whilst fostering a safer environment for consumers. Germany’s gambling regulator has welcomed Google’s policy updates as a positive step towards eliminating unlicensed gambling adverts. The GGL has been actively working to enforce compliance, imposing fines and banning advertisements from unregulated platforms. These efforts have already contributed to a notable decline in unauthorised gambling promotions, and Google’s cooperation is anticipated to amplify this trend. “The ideology around gambling is as thick as ever”. Will Prochaska, Director of @EndGamblingAds , speaks to the importance of advertising regulation and overcoming the challenging political discourse in reframing gambling as a public health issue across the UK. pic.twitter.com/GwfvrJgPDx — The ALLIANCE (@ALLIANCEScot) November 6, 2024 Google’s updated gambling advert policies in Germany are relevant here in the UK, where the Gambling Commission enforces strict advertising standards to protect consumers. Both countries focus on banning misleading adverts, preventing the targeting of minors, and promoting responsible gambling. British advertisers targeting German audiences must now comply with these new rules, reflecting a shared commitment to aligning platform policies with local laws.

The Lithuanian Parliament has passed legislation prohibiting gambling adverts, with few exceptions for sports tournaments and sponsorships. The ban will take effect in July of next year, followed by a transitional phase in which a maximum of three sports betting adverts can air on television and digital platforms during certain time windows. Gambling advertisement ban and transition in Lithuania Lithuania has introduced a ban on gambling advertisements, with exceptions made for sports events, partnerships, and broadcasts until January 1, 2028. During the transitional phase, online platforms are allowed to display up to three sports betting ads per hour between 6 a.m. and 6 p.m., with a reduction in ad space from 6 p.m. to midnight. The Lithuanian government has put aside £3 million to support media enterprises during this transitional phase in order to help them deal with the potential revenue loss. Industry reactions and future implications Online advertising is anticipated to be significantly impacted by the ban, especially for sports betting companies. As a result, organisations like Genome have implemented SEPA Instant Transfers to assist enterprises in better managing their financial activities and ensuring smoother cash flow during this transition period, helping mitigate the financial strain. In the meantime, Confindo and iDenfy have partnered to help financial institutions stop financial crimes. Experts in the field are worried that unregulated internet gambling sites may try to get around the prohibition by utilising different marketing avenues, which could complicate enforcement efforts and make monitoring more difficult. It is believed that the restriction is an important step in controlling Lithuania’s expanding online gaming business, despite these obstacles. Its efficacy in reducing problem gambling and safeguarding vulnerable groups is still unknown, though. Furthermore, the long-term impact on the industry and affected stakeholders remains uncertain as businesses adapt to the new environment.