The UK online gambling company Gamesys has revealed a decision to reduce its marketing exposure during the coronavirus lockdown. The announcement follows the warning which local advertising authorities have issued to sportsbooks to be careful how they promote their esports betting services.
Yesterday, the Gamesys Group issued its trading update for the first fiscal quarter of 2020, revealing a revenue increase by almost one-fifth on an annual basis, reaching £155.3 million. The online gambling company further praised its “strong growth” in Asia, a “healthy double-digit growth” in the US, as well as a “solid performance” in the UK. As explained by the gambling operator, its trading to date in the ongoing quarter is corresponds to its trends registered in the first quarter of the year.
In the trading update, Gamesys confirmed the fact that the unprecedented coronavirus situation could severely deteriorate the problem gambling tendencies in individuals who have been finding it hard to control their gambling, including younger audiences. The reason for this is the massive lockdown and social-distancing measures that are being experienced as part of the authorities’ efforts to tackle the further spread of Covid-19.
While people are spending more time at home and accessing more media, including radio, TV and online platforms, they also have access to unlimited online gambling options and, currently, operators have been investing more efforts in advertising their digital services.
Gamesys to Continue Its Online Brands’ Marketing, with Untargeted Advertising Suspended
This has been one of the major reasons why Gamesys has made a decision to suspend untargeted customer marketing. The gambling company shared that it is set to cease all of its advertising on radio and TV in the UK until the social restrictions that are currently in place are relaxed. The online gambling operator is set to continue its brands’ marketing online but its direct-mail marketing and untargeted advertising throughout digital channels would be suspended.
Besides, Gamesys has decided to temporarily pull its Jackpotjoy branding from the sponsorship of the Loose Women TV programme, with the company also donating the sponsorship opportunity to a charity organisation focused on domestic violence, called Women’s Aid. The operator is also making a £200,000 donation to the charity organisation in order to help it increase its live chat capacity and be accessed by more people.
The advertising efforts made by gambling companies has been a much-discussed issue lately, especially at a time when the popularity of online gambling has been rising amid the massive lockdown during the coronavirus crisis. Campaigners and regulators have been concerned about the possible increase in problem gambling rates among punters, who have now been forced to stay at home for weeks, with a large number of online casinos, gambling, poker and esports options available.
- Author
Olivia Cole
