## Lithuania’s Marketing Mayhem
In May of 2021, the Lithuanian legislature (Seimas) prohibited “promotional activities” in its modifications to the existing gambling legislation.
Although the initial phrasing was ambiguous, officials reassured the industry that this was a restriction on incentives, not a complete advertising prohibition. The Lithuanian administration justified the action by citing a desire to minimize problematic gambling rates and curtail the amount its citizens spend on gambling.
However, in the 13 months since the ban was enacted, Lithuania’s gambling oversight body has penalized a number of activities deemed to be gambling promotions, which in other nations, even those with stringent advertising regulations, would not typically be considered infractions.
Several companies, including Unigames and Betsson, have been cautioned that they could have their licenses revoked after being fined.
The gambling regulator has unintentionally, or perhaps intentionally, fostered a climate of uncertainty, where operators have no choice but to self-regulate. And they are frequently, the agency has concluded, making mistakes.
A covert ban.
In the past week, Lithuanian authorities levied a penalty of €25,000 (£20,982/$25,591) on Betsson’s Betsafe for disseminating a press release concerning online wagering to 10,430 individuals. The regulatory body asserted in their conclusions that the press release deliberately encouraged gambling by highlighting game characteristics.
Although some might perceive this action as not an attempt to sidestep the promotion prohibition, a substantial international entity like Betsson undoubtedly possesses knowledge of the pertinent regulations. Nevertheless, Betsafe joins the ranks of operators penalized for contentious justifications since the prohibition was enacted.
In the month of May, Olympic Casino Group was fined for promoting gambling due to the presence of the phrases “Featured Casino Games; Play” on their Oly.Bet website. Enlabs was similarly penalized for comparable infringements, also involving textual content on their website.
Perhaps most astonishingly, earlier this year, Enlabs was fined €11,183 by the Gambling Authority for promoting gambling because they transmitted an email containing terms and conditions.
While the promotion prohibition might initially appear as a restriction on alluring conduct, the Lithuanian Gambling Authority appears to be extending its reach in nearly all enforcement situations.
A Lithuanian oversight agency inquiry uncovered a divided public sentiment regarding a total prohibition on gambling promotions, despite more than half of participants favoring such a restriction. While most individuals declared they had not encountered any gambling advertisements lately, the majority believed the gambling sector was crucial to the national economy.
Lithuanian authorities appear to have taken action, but not through legislation or government order, but through an indirect approach.
Changing Goals
Lithuania is not the only nation implementing stringent limitations on advertising. In February, the French gambling regulator, L’Autorité Nationale des Jeux, tightened controls and restricted promotions after discovering an overabundance of advertising during the 2021 European Championship.
While France’s limitations on promotions are strict, they are more clearly defined, with distinct boundaries and regulations. In contrast, Lithuania’s prohibition suggests shifting objectives, making it challenging for operators to determine what constitutes a violation and when the country’s regulators will act.
The Netherlands will implement a complete ban on “untargeted” advertising, prohibiting broadcast advertising, commencing January 1, 2023.
The execution of this remains to be seen, particularly when it comes to their online advertising policies.
However, this precedent could be unsettling for those who viewed Lithuania as an insignificant market. In a nation where the public is opposed to gambling advertisements, will authorities again introduce a de facto advertising prohibition without examination?
Lithuania’s promotional prohibition was implemented quickly, being put into effect just weeks after its announcement. Perhaps it should have been more carefully considered before its launch to prevent the uncertainty and apprehension it has generated since.
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