BarcelonaThe first free bet advertising league is over. This is stated in the decree approved by the Spanish government, which limits the announcements of this sector to a morning strip and prohibits them in most of the main showcases, such as the shirts of the football teams. Jorge Hinojosa is the general manager of the JDigital association, a kind of employer of the online game that represents 80% of the companies that are dedicated to sports betting. The leader makes a not very optimistic assessment of the first year with the law in place.
It has been almost a year since the entry into force of the Royal Decree on Advertising in Digital Gaming. What is your assessment of the impact of the measure?
– Advertising, understood as the promotion of an activity, is important. But commercial communication has more functions, such as implying safe and responsible gaming strategies, legality of platforms … Advertising has been stigmatized as a cause of problems, when it also has the potential to channel demand towards good practices. . The decree has had an impact on our business. In the last quarter of 2021, a 24% decrease in activity was declared in relation to the same period in 2020.
In other words, they have noticed that there is no longer advertising of bets on sports programs, broadcasts and team shirts.
– We are committed to regulation and control. What happens is that the regulation that has been made has not achieved its objectives. The industry is now more vulnerable and provides fewer guarantees to the user. And if you look at it, the space that the digital game has left in football sponsorships has been left to the world of cryptocurrencies, which is also exposed to addictions.
What strategies do gaming companies now follow in finding new customers?
– There is no possible strategy beyond announcing between one and five in the morning. There is no room for growth. Communication has been banned. You can only work on the database you already have.
Conveying all the addiction issues about private gaming doesn’t fit reality. ”
Jorge Hinojosa General director of the JDigital association
Were there any ERTOs or EROs in pandemic times linked to loss of revenue due to advertising problems?
– No. The sector has held up. It is not a weak sector in terms of employability.
Then they’re not that bad, are they? If the sector holds up and there have been no layoffs …
– Yes, but the sector is what it is. It can’t grow anymore.
Do you just think that alcoholic beverages are advertised in football and not gambling companies? For example, there is a well-known brand of wine that floods half of the parties on TV.
– We give up fighting with other sectors. We believe that there should be a regulatory framework for all practices that may affect vulnerable populations, such as gambling and alcohol consumption. Nor will we complain about the grievance of being able to see a public gaming ad at any time of the day, and instead a private gaming ad. This is the model of development of the country and we respect it. But conveying all the problems of gambling and addiction on private gambling does not fit reality. We are not the only ones who can cause problems. We are not the only ones to blame.
Don’t you think, with your heart in your hand, that sports betting advertising was excessive?
– When you go from 100 to 0 the difference is considerable, yes. But I think there has been a lack of global coherence to generate reasonable promotion mechanisms without reaching these prohibition extremes.
What has been the cost of the decree at the fiscal level?
– The government has stopped collecting just over eleven million. It’s not a lot of money, as the digital gaming turnover is very small. We assume 8% of the total game in Spain. Net winnings are quite low when you discount the prizes for the winners of the bets.
The government now wants to pass a royal decree on responsible gambling. Do they have an approximation of what will be regulated?
– We are in favor of avoiding misconduct in vulnerable populations, but it will be difficult to enforce the regulations if the requirements are impossible to meet. For example, we are asked for an interpretation of the economic capacity of users that we cannot achieve. Should we ask people for income tax returns? This is going too far in terms of data protection.
What do they propose from the association to ensure consumer safety?
– We move in a technological field that allows us to develop security mechanisms in the verification of data, payment gateways … We can say that in Spain we have a very safe game.
Yes, but the safety of the players is also to prevent them from falling into gambling addiction. Everything on the internet has a trace. And by virtue of this trace it can be detected if a user goes over the line.
– The digital game must have mechanisms to detect the fixed matches and also the gambling disorder, which do not benefit the sector at all. We are not interested in capturing gamblers. In fact, the new regulations set spending limits to prevent misconduct and promote free and responsible gaming.
How come there are bookmakers that have VIP account advisors, who usually belong to millionaires, and instead do not advise working people who can get into serious debt?
– It is not a promotional topic. Here we have to differentiate between vulnerable and non-vulnerable populations. Just because you have money doesn’t mean you have a problem with gambling.
Does that mean gamblers can only be poor?
– I’m talking about the control mechanisms that exist in the operators.
Why are there more bookmakers in lower class neighborhoods than in high areas?
– You should analyze the legislation that affects face-to-face play. It is an issue that is regulated by the autonomies. And I don’t think it’s bad.
Why is it fun to bet? What values does it have?
– It is a social issue related to the activity on which you bet, which is mostly sports, and in particular football and tennis. It promotes the same values as other games: elements of leisure, entertainment and profit expectations.
Barça maintains the sponsorship of 1xBet, a company created by Russians who are wanted and captured by Interpol and headquartered in Cyprus. In Spain it operates through a subsidiary that is in Valencia. Is it an honest company?
– Yes, considering that it is included in the ordinance of the game in Spain. The domain .es it is usually a guarantee of legality. But it’s not just about legislation. It is necessary to legislate looking at the objectives. And those goals are not being met. Not to ban advertising prevents some companies from operating irregularly. It is important to consider whether the approved measures will help us to be safe. If the sector loses strength, as is happening, there will be more people eager to do illicit business.
Isn’t that a bit of a fear speech?
– No. We have evidence that illegal companies are proliferating, secretly from companies that do have a proper license. The problem is that we want to go extinct. And that is not possible. The game has been around all my life.
