Problem Gambling Foundation seeks tougher enforcement of New Zealand ad rules

The Problem Gambling Foundation has called for stronger regulation and enforcement against offshore gambling companies that it says are breaching New Zealand's advertising laws, advocacy director Andree Froude told RNZ's Morning Report. The call comes as New Zealand prepares to launch licensed online casinos under new regulations.

According to Froude, operators based abroad have promoted themselves through social media, influencers, inducements, and by tagging buildings and walls. In her view, such methods demonstrated that the restrictions already in place were failing. She added that these overseas operators had ignored New Zealand's advertising rules for years, turning to other ways of raising awareness and drawing in users instead of conventional advertising.

These worries from the foundation came after reports of gambling promotions reaching members of the public, among them people in recovery from gambling harm. On Friday, a former problem gambler told RNZ that illegal online casino advertisements were still arriving on the phones of people recovering from gambling problems, and that regulators therefore required greater powers. Some people said they had been offered bonus cash after going several days without betting. Others described seeing a large volume of gambling advertising after looking online for a gambling harm organisation, even though they had never visited a gambling site.

The previous week saw 11 entities obtain the right to apply for the 15 online casino licences on offer in New Zealand, and the auction closed at $15 million per licence as the country advanced its regulated online casino framework. Froude described the advertising requirements as confusing, since different legislation covered different activities. Under the licensing system online casinos would be subject to advertising rules, yet she emphasised that at present they were banned from advertising to New Zealanders. By contrast, she said TAB and Lotto had few or minimal advertising restrictions, with the Advertising Standards Authority overseeing their advertising.

In Froude's view, penalties on their own would accomplish little unless they were enforced. She urged that the Department of Internal Affairs be given enough resources to monitor operators and check that they complied with New Zealand law, and she said breaches serious enough to justify court action should be taken to court. She further argued that an operator's failure to obey the law ought to count when licences are decided, with penalties imposed from the start.

Froude went further than tougher enforcement and argued that gambling advertising should be banned outright. Advertising shapes behaviour, she said, and she pointed to the World Health Organisation's backing for such restrictions as a crucial first step toward lessening the public health harm linked to gambling. She believed the guardrails already in existence required practical support, with monitoring, penalties and scrutiny at licensing all combining so that operators met the requirements imposed on them.

Entain, the company behind TAB and Betcha, stated that customers should be able to find out what support exists to keep their betting enjoyable and safe, and it stressed the importance of making that support visible to customers. According to the company, it operates under very strict conditions and has invested considerable sums in safer gambling and age limits. Entain also affirmed its commitment to responsible gambling that delivers benefits to society.