Enforcement Push Against Gambling Operators
The ASA heard several complaints regarding gambling brands and investigated the advertisements on TikTok based on information provided to the regulator. The ruling against the companies is part of an enforcement push on services provided, with the ASA pointing out that social casino apps are to emulate slots or other casino-style games but do not offer real-money prizes.
The regulator stated that consumers are not supposed to have the option to win or withdraw real-world money or a tangible prize from gaming apps, as they are not considered gambling products. The social casino ads by the listed companies were said to breach the ASA’s rules regarding gaming marketing.
The advertisements implied that players would win a tangible prize or real-world money from services, which is, of course, against the rules.
Four Operators Defend Their Ads
Four of the five operators listed in the ruling have spoken out in defense of their actions. SpinX Games was one such company, telling the ASA that several disclosures are included in the customer experience explaining that real-money prizes are not available.
SpinX also pointed out that it is common for social casinos to use gambling industry terminology in advertising. The ads were removed from TikTok, but the social media company told the ASA that they did not violate ad rules.
The ASA upholds that the advertisements violated the CAP Code rules, with emphasis on misleading advertising. Mobee Co has not responded to the ASA ruling, but TikTok has stated that the company violated policies, and the marketing messaging was removed from the app.
What it Means for the US Sweepstakes
While this case is isolated to the UK and doesn’t have direct bearing to the US social gaming market, it may be a sign of regulators taking a closer look at sweepstakes. The increasing number of class action lawsuits against sweepstakes casinos, and sporadic exoduses of sweepstakes operators from certain states aren’t isolated events. This is recognized by the industry on all sides, with the launch of the Social and Promotional Gaming Association and the AGA’s call for a crackdown against social casinos.
