Commercial ban on gambling ensures losses

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Peter Brandt 1. November 2019

The British Pay TV broadcaster Sky TV had to accept losses in the area of advertising revenue in the third quarter of the current financial year. In contrast to last year, the figures dropped by 18.2 percent. The loss -making development is based on changes in the law in Great Britain and USA, which has a negative impact on the company’s business processing.

In Great Britain the ban on gambling has been in place since August 1st, 2019. (© Julius Silver on Pixabay)

Comcast Corporation puts numbers open

Since September 2018, the Sky Group has belonged to the US company Comcast Corporation, which is about the takeover 29.6 billion British pounds cost. at the time, the parent company hoped that the interdisciplinary balance of power was shifted to its own advantage. however, the recently open sales figures for the third quarter of 2019 show a negative development. although the parent company overall one Increase in sales Sky TV recorded a drop in sales of 4.2 percent compared to the previous year. A spokesman for the company attributes the reasons to losses in the advertising revenue:

“The numbers of the current quarterly report speak a clear language and reflect the lack of income from gambling advertising. In the two major sales markets Great Britain and USA, we clearly feel the effects of the change in law on advertising for gambling. The current weakness of the market also fuels the bad balance sheets. ”

In the third quarter of the past financial year, the Sky Group was able to achieve sales of $ 545 million. In the third quarter of this year it is relatively only 446 million $ and corresponds to one Return development of around 18.2 percent.

Market regulation in Great Britain

Last year the British institution terminated The Industry Group for Responsible Gambling (IGRG) with the support of politics and the public Prohibition for gambling advertising on. the intended change in the law was supposed to combat burge more and came into force on august 1st, 2019. before the market -changing intervention, the british gaming companies on the domestic market enjoyed a certain freedom of movement and, despite the strict regulations, were largely able to pursue their daily business. however, the situation has been completely different since the change in the law. gambling providers are allowed no advertising radiate more during sporting live broadcasts. football has shown how strong gaming companies in british sport have been stirring since the past few months and years. much of the professional clubs in england wears advertising from the individual providers on their jerseys. at the same time, during the 2018 world cup in russia, more than ran more than 90 minutes of advertising for gambling. the new market regulations are intended to steam these temporal tension and especially protect children and adolescents. the idea was submitted to contain the advertising by the Remote Gambling Association (RGA), as Industry association is applicable. In an official statement from last year, the institution emphasized the good cooperation in the industry:

“In November we brought the top tour of over 100 gaming companies together. Our goal was to see how the industry could work together to make the game fairer and safer – in relation to how to sell your advertising. We were impressed by the different plans in the industry. “

Reference from politics

Even before the first interviews on the planned changes in the law, many gambling companies in Great Britain were cooperative and promised self -regulating measures. Sky announced in November 2018 to radiate less advertising for gambling from the start of the season. especially the Addiction prevention this should be promoted in young people. due to the voluntary self -regulation of the industry, some politicians were positively surprised and raised one good communication basis between business and politics in this discourse. Tom Watson, deputy chairman of the Labor Party, said on Twitter:

“When companies from the gaming industry and politics are constant exchange about market -changing events and pull around the same strand, ultimately only a benevolent result for the British population can come out. To do this, some of your own interest must be made in the back. “

USA prohibits advertising from gambling

Not only the British government uses profound changes in the market and limits gambling advertising on the domestic market. Also in USA there has been any Advertising for gambling forbidden on national soil. the restriction used applies to both television and radio. in USA, an estimated tax losses of 700 million $ arise from the new legislation. however, the financial losses include not only media institutions, various channels and the state, but also the domestic football clubs. similar to england, many clubs have sponsorship contracts with providers of gambling. although violations of that Gambling advertising ban In USA with sensitive fines of at least 50,000 $ , there is a gap in the specified law. The ban only applies to the American domestic. Juventus Turin reacted to this fact. Matteo Bianchi, sports journalist at La Gazzetta Dello Sport, explains the approach of the traditional club:

“Despite the ban on gambling advertising, Juventus appointed the betting provider 10bet an official advertising partner. Since the ban is only valid on American soil, the club works exclusively with the company outside of USA. ”

The unusual cooperation will probably remain an exception for American football clubs, since advertising partnerships for gambling companies are not lucrative due to the advertising ban. Since Juventus Turin has a great radiance in the international football world, this sponsoring deal becomes one from the perspective of 10Bet profitable partnership represent. die Sky TV sales loss Due to the circumciting advertising options, other media institutions in Europe are very likely to suffer from both in USA and Great Britain.