Advertising is a powerful driver of consumer behaviour, especially in sectors, where the financial and emotional implications are high. The effectiveness of marketing is its power to attract and motivate consumers by employing compelling methods but it carries a heavy ethical responsibility.

Although successful campaigns have the potential to generate growth, they also tend to expose weaknesses, particularly in consumers who may be uninsured or lack the self-control needed to cope.

This article discusses the interaction of these dynamics, in a detailed examination of the implications of advertising for the gambling industry, the ethical issues that arise from advertising for it, and how to manage a responsible practice.

How powerful is marketing really?

The power of advertising to influence consumer behavior is widely recognised, in the context of gaming, where marketing is very often intensely personalised to have an immediate behavioural impact.

According to the TGM report, 55% of respondents to the global survey, the same figure as in it, particularly marketers at online betting companies, saw an advertisement or special offer as a reason to make a bet. Among young adults aged 25-34 this influence is even stronger: with 60% admitting that advertising motivated their decision to gamble.

Celebrity appeal, for example, involves using the credibility and recognition attached to famous people to stimulate gamblers. These endorsements exploit the fans’ attachment to the public figure in evocative marketing of the gambling activity in a way that is as appealing and recognisable as possible.

However, this has raised some concerns among observers, who have suggested that these campaigns may be unintentionally appealing to target populations, such as young people and developing populations, for whom serious financial and emotional consequences of this activity are riskier.

This process is implemented by digital platforms using sophisticated data-driven algorithms and marketing ads to users. However, for these platforms, all propositions are displayed on a (highly) personalised list, maximising individual relevance as much as possible.

Since the “free bets” or “odds boost” propositions that are offered to users are primarily of the persuasive type that encourages interest and urgency of demand rather than the one that pushes “acquisition,” they stimulate a rapid and involuntary demand. choices so that the user does not miss out while reactivating a response reaction process. With this degree of personalisation, ads can, in turn, be delivered that are highly tailored to the audience, and can also increase their persuasion to achieve that experience.

But this power to exert such tight control over behavior also creates some problems. The moment marketing starts to mix persuasion with coercion, that’s when marketing crosses the line. Ethical concerns are very high within the industry where there is both money to be won and money to be lost and the risk of financial loss or gambling addiction is very high.

The ethical core of the gambling industry

Targeted vulnerability is arguably one of the most acute ethical challenges. For instance, data-driven marketing uses consumer behaviour patterns to deliver customised advertisements. Although this personalisation improves efficiency, it can simultaneously select persons who might be already at risk of problem gambling online. For gamblers and financially distressed individuals, these ads can, unfortunately, contribute to even more difficult situations.

This is where highly responsible platforms step in to help the players and recognise potential risks. Sites like Vulkan Vegas Casino and all the others functioning on a professional level are maintaining a great reputation by training their staff to recognise early signs of addiction and raise the flag when necessary. Their service can be life-saving in an extreme situation when players lose control over their habits, which is why one of the most ethical things to do within this field is to invest in a highly trained support staff.

Also, with the advent of novel betting structures, e.g., micro-betting, new axes of ethical topography are encountered. These formats offer an exciting, dynamic experience for gamblers, however, there are multiple dangers associated, particularly for casual gamblers who are unfamiliar with the dynamic nature of the decisions. For this audience, however, some degree of transparency and educational materials accessible to the public are also, essential components of responsible engagement.

Another concern lies in the transparency of marketing messages. Several advertising messages target potential wins or games of chance but do not adequately emphasize risk. In certain instances, it has been argued that they have downplayed the actuality of gambling as well as the risks, promoted gambling to young and developing gamblers, or put forth only limited information on probability and odds encouraging consumers to overestimate their ability to win and the likely magnitude of winnings.

The future of marketing & gambling

The interaction between advertising and betting activity is strong and intricate. As has been pointed out in the TGM Global Gambling Sports Betting Report 2024, marketing presence in the gambling industry cannot be overstated. Although it plays a fundamental role in generating engagement and revenue, it also presents designers with serious ethical issues that must be considered.

To cope with these difficult situations, the industry should focus on openness, integrity, and consumer welfare. Stronger regulations combined with voluntary efforts to implement responsible advertising practices can create a more equitable environment where growth does not come at the expense of public trust. Cooperative initiatives, such as public awareness campaigns and industry-led actions, establish a framework for addressing the ethical issues involved.

The ultimate aim is not only to control behaviour but to help develop an industry culture where responsibility and innovation go hand in hand. By aligning business goals with society’s values, the entire sector can guarantee that its marketing activities are appropriate to the consumers it aims to attract and protect at the same time.

SPONSORED