World Lottery Association Weighs in on Responsible Sports Betting Marketing

Posted on: April 18, 2022, 10:54h. 

Last updated on: April 18, 2022, 12:31h.

Erik Gibbs Read More

Expertise: Asia Pacific Gaming, Gaming Business, Global Gaming.

The World Lottery Association is joining the global push to emphasize responsible marketing in the gambling ecosystem. It has published regulatory guidelines it expects all of its members to comply with.

The World Lottery Association (WLA), which provides guidance for lottery and sports betting operators worldwide, has published a new responsible marketing guide. It mostly centers on sports betting marketing and advertising to deal with competition from illegal betting operators.

There has been a proliferation of illegal and unauthorized betting providers operating online. As a result, lottery operators must be innovative and competitive in the face of the situation’s challenges.

The Sports Betting Marketing Best Practices guide offers an overview of how operators can market their products competitively and responsibly to cope with competition from illegal betting operators. At the same time, they have a duty to offer lottery and sports betting products that are safe and responsible, while fulfilling their mission of raising funds for good causes.

Marketing and advertising are the best ways to separate legal platforms from illegal or unlicensed alternatives. Efforts to completely ban gambling advertising, as some have suggested, may do more harm than good.

WLA Wants Responsible Lottery Operators

To be responsible operators, WLA members will need to follow certain guidelines. They need to establish what the organization calls a “Minimum Viable Product.” This is possible through a solid understanding of the sports betting landscape.

“A lottery or sports betting operator must ensure that responsible gaming measures lie at the heart of its sports betting offer, and the welfare of its players is insured,” explained the WLA.

The WLA points out in its 20-page document that “around 80% of sports betting revenue generally comes from about 10% of the players.” This will influence how operators develop their marketing plans. There are other criteria, as well, such as budget constraints, resource limitations, regulatory restraints and more.

One option the organization gives to improve overall responsibility is using self-service betting terminals (SSBT). The WLA admits that even these are susceptible to the inclusion of illegal activity. However, it emphasizes that the terminals can allow operators to be more competitive and expand their footprint. In doing so, they can help reduce the penetration of the illegal market.

Lottery Operators in Agreement

The Ibero-American Corporation of State Lotteries and Betting (Cibelae, for its Spanish acronym) is ready to follow the guidance. The Latin American organization echoes the launch of the new guide, according to a statement on its website.

Cibelae highlights that WLA member lotteries have an obligation. They must ensure that their lottery and sports betting products are channeled through regulated and supervised retail and digital networks. They need to work with regulators and authorities to focus on removing the illegal segment.

From a responsible gaming perspective, lotteries should not offer a payout rate over 90%. Such a high payout rate can attract more players, but it also comes with a higher risk of exacerbating gambling problems,” the WLA stated.

Illegal gambling operators don’t care about their players’ welfare. They even recruit players online with bonuses where they have no authorization.