## Lithuania’s Gaming Authority’s Marketing Oversight – iGB
iGB Commentary: Marese O’Hagan contends that Lithuania’s gaming regulator should elucidate what constitutes gaming promotions within the country.
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**Lithuanian Marketing Oversight**
In May of 2021, the Lithuanian Parliament (Seimas) prohibited “promotions” in its amendments to the existing gaming legislation.
While the initial wording was ambiguous, officials assured the industry that it was a prohibition on inducements, not a comprehensive advertising ban. The Lithuanian government, in defending the move, cited a desire to minimize problematic gambling rates and reduce the amount its residents spend on gambling.
But in the 13 months since the ban went into effect, Lithuania’s gaming regulator has levied fines on a number of activities deemed to be gaming promotions, which in other nations (even those with very stringent advertising regulations) would not typically be considered violations.
Several companies (including Unigames and Betsson) have been cautioned of potential license revocation after receiving fines.
The gaming regulator has unintentionally (or deliberately) implemented an uncertain environment where operators have no choice but to self-regulate. And they frequently (as the agency has determined) make mistakes.
**The Backdoor Prohibition**
In the early months of this year, Lithuanian authorities imposed a penalty of €25,000 (£20,982/$25,591) on Betsson’s Betsafe for sending an electronic message regarding online gaming to a group of 10,430 individuals. The regulatory body’s findings indicated that the email deliberately encouraged gambling by highlighting game characteristics.
Some might argue that this was not an attempt to bypass the promotional restriction. Large international companies like Betsson are undoubtedly familiar with the applicable laws. However, Betsafe joins the ranks of operators who have faced contentious penalties since the prohibition was put into effect.
In May, Olympic Casino Group was penalized for promoting gambling by utilizing phrases such as “selected casino games; play” on its Oly.Bet website. Enlabs was also fined for similar infractions, also involving text on its online platform.
Perhaps most surprisingly, earlier this year, Enlabs was fined €11,183 for being found by the Gambling Authority to have promoted gambling by sending out terms and conditions emails.
While the promotional restriction might appear to be a ban on inducements at first glance, the Lithuanian Gambling Authority seems to be adopting a much broader approach in nearly all enforcement cases.
A Lithuanian probe by authorities has revealed that while there are other problems with the sector and marketing that suggest a division in public sentiment, some individuals favor a complete prohibition on advertising and promotional endeavors. To some degree, the nation’s regulators appear to have taken measures to achieve this, but not through legislation or government directive, but through a “back door” method. While a little over half of respondents backed an advertising ban, most also stated they had not witnessed any gambling advertisements recently, and the vast majority asserted that the gambling industry is vital to the national economy.
**Changing Goals**
Lithuania is not the only nation to impose stringent limitations on advertising. In February of this year, the French gambling regulator, the National Gaming Authority (ANJ), tightened its control over advertising and restricted promotions after discovering a surge in advertising during the 2021 European Championship.
France’s restrictions on promotions are strict, but more clearly defined, with clear boundaries and rules. Lithuania’s prohibition, on the other hand, suggests shifting goals, leaving operators uncertain about what constitutes a breach—and when the country’s regulators will take action.
Elsewhere, the Netherlands will implement a complete ban on “non-targeted” advertising, which will prohibit the broadcasting of radio advertisements starting January 1, 2023.
It is yet to be determined how this prohibition will be carried out, particularly regarding its rules for online marketing.
However, this precedent may be disconcerting for those who perceive Lithuania as a trivial, easily disregarded market. In a nation where the populace has shown opposition to gambling advertising, will officials again covertly enact a practical advertising prohibition without examination?
Lithuania’s promotional ban arrived unexpectedly, declared only a few weeks prior to its execution. Perhaps it should have been more thoroughly assessed before its commencement to avoid the ambiguity and apprehension that has emerged since.
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