The short-form video hosting service TikTok is allowing sports betting operator Sportsbet to promote its services to Australian customers, although it has previously suspended gambling advertising on its platform.
A spokesperson for TikTok confirmed that the company was running a strictly-controlled advertising pilot programme with Sportsbet for the first time in Australia but that was found concerning by some market experts.
The current advertising policy of TikTok in Australia suspends adverts promoting gambling-related content, such as bingo, daily fantasy sports, etc., adverts originating from a gambling brand or featuring any gambling company’s branding, as well as adverts sponsored by gambling operators. However, the rules state that a closed pilot scheme for sports betting services is currently in operation for a certain client that has received special permission from the video hosting service provider following an application process.
The short-video hosting platform revealed that such advertisements would be subject to monitoring in order to make sure that users are safe. These promotions also need to feature responsible gambling messages as required by law.
The limited trial will see some sports betting adverts shown only to platform users over the age of 21 but experts believe this would be hard to enforce. As revealed by TikTok, the frequency of the ads was limited and a special opt-out feature allowing customers to stop seeking the ads was available, too.
Sportsbet’s Ads on TikTok Spark Criticism by Researchers and Gambling Market Experts
Reportedly, the ABC News has found seven video adverts of the Australian gambling operator Sportsbet posted on TikTok in October 2022. The majority of the video ads feature young men and women commenting on some races, with two of the videos specifically mentioning the mobile application of Sportsbet.
It is not immediately obvious that the videos are actually gambling advertising materials, except for them featuring the Sportsbet branding and the obligatory tagline “Gamble Responsibly”. This, however, could also be potentially dangerous to consumers. Professor Samantha Thomas, a gambling researcher from Deakin University, criticised the practice, saying that the humorous viral videos made the adverts even more appealing to TikTok users and had a significant impact on the normalisation of gambling among young Australians. Professor Thomas explained these were not obviously ads but the videos were still promoting the sports betting company in a way that could lure young users into gambling. According to her, the increasing number of such posts on the platform was really concerning.
According to another expert – the digital cultures and societies director of the University of Queensland, Nicholas Carah, TikTok would find it difficult to make sure such adverts are only shown to users over the age of 21. He believes that the big issue around promoting potentially harmful services or industries is the fact that many users sign up to a certain platform before such adverts are technically allowed to target viewers.
Research has already proved that limiting content promoting age-restricted products such as gambling and alcohol to people over the age of 18 has been hard for other social media platforms, including Facebook, Instagram, Snapchat, and YouTube. This puts the entire effectiveness of such restrictions on social media platforms under question.
Furthermore, experts believe that the Federal Government of Australia needs to start regulating gambling on social media as it already does for TV and radio channels, and online streaming of sports events. Amanda Rishworth, Australian Federal Minister for Social Services, has already noted that she was very keen to discuss further gambling regulation as a result of the worrying releases of a parliamentary inquiry into online gambling. She also noted that the Standing Committee of the House of Representatives has already started a board-ranging probe into advertising and other areas of problem gambling online.
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