Over the past few years, the iGaming industry, which includes online gambling, sports betting, and other gaming activities, has seen unprecedented growth. This growth creates new business opportunities but also increases the competition for every iGaming firm in the market, which in turn raises the need for effective product marketing and brand recognition. Some of the most successful firms resort to using brand ambassadors, who could be industry celebrities, influencers, or any renowned figure who promotes the company’s products. However, there are key considerations to take into account when it comes to brand ambassadors and compliance.
Brand ambassadors do offer a great approach to reaching a new audience, but they operate under strict gambling and advertising laws, along with marketing regulations. Let’s find out more.
The Importance of Brand Ambassadors in iGaming
When it comes to the iGaming industry, the influence of brand ambassadors can be monumental. This is thanks to their capability of increasing the reputation and visibility of a business, allowing a brand to attract more customers. For instance, brand ambassadors can be well-known sports personalities advertising a sportsbook or a social media influencer marketing an internet casino. These are the people companies usually call upon whenever they want to market the products so that they can take advantage of the large fans base and increase recognition of the brand even further.
However, utilizing brand ambassadors can be more difficult than expected. More so than other industries, iGaming has strict regulations which means that companies have to navigate laws which dictate the promotion of their products and services. These tend to vary between regions, thus making it more difficult for international operators to comply, especially without adequate scrutiny of regulations.
Legal and Regulatory Challenges
For businesses in the iGaming sector, what proves to be the greatest challenge towards the use of brand ambassadors is their promotional activities being bound by strict legal restrictions for the region in which they operate. Different regions have different advertising laws, including marketing towards children, and even the portrayal of gambling.
Alongside that, numerous countries have set restrictions on the design of gambling advertisements so they do not target young people or vulnerable individuals.
For instance, The European Union has legislation on the advertisement of all gambling services because of its Directive on Audiovisual Media Services, which also sets out limitations on advertising to children, as well as the expectation of responsible messaging toward gambling. There are also compulsory advertising rules issued by The United Kingdom’s Gambling Commission, which operators must comply with to prevent use of deceptive wording and ads that appeal to children.
Managing Risk and Compliance
Properly managing brand ambassadors and compliance begins with performing adequate due diligence. iGaming companies have to screen potential brand ambassadors for any known associations that can tarnish the company’s image or lead to a legal problem. This involves checking the ambassador’s social media activity, public comments, and any lawsuits that they might have been parties to. They also must decide whether the spokespersons’ clientele is within the audience’s legal jurisdiction and, therefore, within the bounds of the law.
Other risk management approaches encompass instructing the ambassadors on compliance. Signing a brand ambassador agreement is not enough, and an iGaming company must accept that regulation compliance will not be self-executing.
In light of this, some of the key strategies for managing brand ambassadors and compliance include developing robust anti-corruption education that covers the social ethics of gambling, the legal boundaries of promotion activities, and the need to avoid forbidden content.
The Future of Brand Ambassadors in iGaming
The explosion of the iGaming industry is certain to intensify the use of brand ambassadors. With such increased dependence on celebrities and influencer marketing comes additional scrutiny and obligation. Brands cannot afford to be passive in dealing with the changing rules, as they need to ensure compliance and brand and legal protection.
In conclusion, although using brand ambassadors has potential gains for iGaming businesses, it also poses challenges with respect to governance both domestically and internationally. Through proper due diligence, training, and the vetting of marketing collateral, iGaming companies stand to benefit from brand representatives whilst reducing the risk of non-compliance.
