CAP and BCAP Consultation: The Regulation of Non-broadcast and Broadcast Advertising of Gambling - Executive summary

1.1 This Consultation sets out CAP and BCAP’s proposed rules for the regulation of non-broadcast and broadcast advertisements for gambling, defined as betting, gaming and lotteries (covered by the Gambling Act 2005, “the Act”) and the National Lottery. Also, the Consultation contains BCAP’s proposed rules for the regulation of broadcast spread betting advertisements.

1.2 CAP and BCAP are drafting new rules because the Gambling Act 2005 introduces a new legislative framework for gambling advertising, granting some gambling sectors more scope to advertise than at present, particularly British licensed casinos and betting operations. The Act states that Ofcom is responsible for setting, reviewing and revising broadcast gambling advertising rules. Because Ofcom has contracted-out the regulation of broadcast advertisements to the ASA system, BCAP exercises that role. The Gambling Commission has invited CAP to write the non-broadcast rules to ensure consistency with the broadcast rules. The proposed CAP and BCAP gambling advertising rules will apply to National Lottery advertisements to ensure that they continue to be regulated by the CAP and BCAP Codes and to meet BCAP’s general statutory obligation to regulate all broadcast advertisements aired by Ofcom TV and radio licensees. The National Lottery Advertising and Sales Promotion Code of Practice enforced by the National Lottery Commission requires the National Lottery operator to comply with the CAP and BCAP Codes and guidance and ASA decisions.

1.3 The proposed non-broadcast rules will form part of the British Code of Advertising, Sales Promotion and Direct Marketing (the CAP Code). The proposed broadcast rules will form part of the BCAP Radio Advertising Standards Code, the BCAP TV Advertising Standards Code and the BCAP Rules on the Scheduling of TV Advertisements. The other rules in those Codes will also apply to gambling advertisements as appropriate, for example rules on misleading advertising.

1.4 In line with the objectives of the Gambling Act, the proposed CAP and BCAP rules will ensure that all gambling advertising is responsible, with particular regard to the need to protect children, young persons and other vulnerable persons from being harmed or exploited by advertisements that feature or promote gambling.

1.5 Because the Gambling Act and the BCAP gambling advertising rules will allow betting to be advertised on TV and radio, BCAP proposes new rules to allow spread betting to be advertised as an investment activity on specialist financial TV channels and radio stations or within specialist financial programming. Spread betting advertisements will also be subject to the gambling advertising rules.

1.6 The CAP and BCAP Codes are administered by the Advertising Standards Authority (ASA), the independent body that receives and investigates complaints about advertising from the public and industry. CAP and BCAP carry out compliance, monitoring and research to enforce the Codes across the advertising industry. In the event of serious or recurring breaches of the non-broadcast gambling rules, the ASA’s legal backstop regulator will be the Gambling Commission and, in respect of broadcasting rules, Ofcom.. The Gambling Commission intends to make compliance with the CAP and BCAP Codes a condition of the gambling operator licences it issues. It will have powers and sanctions to enforce its licence conditions, which it will use where necessary. Ofcom is the ASA’s backstop regulator for all broadcast advertising and can take action against Ofcom broadcast licensees after a referral from the ASA.

1.7 The Gambling Act 2005 is due to come fully into force in September 2007. CAP and BCAP’s finalised gambling rules and BCAP’s finalised spread betting rules will become enforceable on that date.

1.8 In this consultation, Section 2 contains an introduction to CAP, BCAP and the ASA. Sections 3 to 5 focus on the proposed CAP and BCAP rules for the advertising of gambling. Sections 6 to 8 are dedicated to the proposed BCAP rules on spread betting advertising.

1.9 Section 3 outlines the regulatory framework for the advertising of gambling. It includes the present regulatory position, the position from September 2007 and how the proposed CAP and BCAP gambling advertising rules will be enforced. Section 4 explains the policy background to the proposed gambling rules and sets out our approach to formulating them, including rules for the protection of children and young people and other vulnerable people, compulsory statements in advertising and how the rest of the CAP and BCAP Codes will apply to gambling advertising, for example rules on misleading advertisements. Section 5 contains the CAP and BCAP non-broadcast and broadcast (radio and TV) gambling advertising rules.

1.10 Section 6 describes the regulatory framework for spread betting advertising, including the present position, the position from September 2007 and how the proposed BCAP rules will be enforced. Section 7 explains our policy approach to drafting the proposed BCAP radio and TV spread betting rules. Section 8 contains the proposed rules.

1.11 We welcome opinions on all parts of this consultation to inform our decisions when finalising the gambling and spread betting advertising rules. See Annex 1 for an explanation of how to respond and Annex 2 for a list of Consultation Questions, which are also contextualised in this document. The Consultation will close at 5pm on Friday 15 September 2006.