New South Wales Targets Gambling Influencers in Social Media Crackdown

New South Wales is intensifying its oversight of gambling promotions, specifically targeting social media influencers. This initiative aims to mitigate gambling harm and ensure industry compliance.

Key Takeaways

* Liquor & Gaming New South Wales is implementing stricter regulations on social media influencers involved in gambling sponsorships.
* The crackdown addresses concerns that influencer content blurs the line between entertainment and marketing, potentially increasing gambling harm.
* Operators and influencers face substantial penalties under the Betting and Racing Act 1998 (NSW) for non-compliant promotional activities.

New South Wales’ gambling regulator, Liquor & Gaming New South Wales, has outlined its strategy to regulate social media influencers with ties to gambling entities. This move comes as Hospitality and Racing Deputy Secretary Tarek Barakat highlighted the increased risk of gambling harm when entertainment and marketing become indistinguishable through such sponsorships.

Regulator Targets Influencer Promotions

Deputy Secretary Tarek Barakat emphasized the importance for businesses, including online bookmakers and gaming machine operators, to understand their legal obligations amidst the rise of social media personalities promoting gambling. Barakat stated that gambling operators are being put on notice, with a key priority for the current year being a thorough examination of their marketing and customer-retention practices. This scrutiny specifically includes the use of social media personalities for promotional purposes.

Operators are advised to exercise caution regarding any affiliate or partnership arrangements, as they will be held accountable for the advertising of their products. Authorities are focusing on practices such as both paid and unpaid promotional partnerships with wagering and gaming machine operators. Influencer content that normalizes betting behavior or glamorizes gaming products, along with the platforms used for such promotions, will also be subject to review.

Barakat further explained that these practices can elevate the risk of gambling harm by blurring the distinction between entertainment and marketing, potentially exposing vulnerable groups to persuasive promotional content. Liquor & Gaming NSW will require social media content creators to demonstrate that their online content adheres to legal requirements.

Gambling influencers have often operated in a less defined regulatory space. However, under the Betting and Racing Act 1998 (NSW), advertisements that offer inducements to gamble are prohibited. The legislation also bans any content deemed false, misleading, or deceptive, including claims or suggestions that participation in gambling guarantees a win. Operators are further restricted from implying that gambling can serve as a method for financial gain.

Companies found in breach of these regulations can incur fines of up to AUD 110,000 (approximately $77,000). Social media influencers involved in such promotions may face fines of up to AUD 11,000 (approximately $7,700). The regulations extend beyond the promotion of bonuses or special offers; for instance, influencers who film themselves gambling at venues and disseminate this content on social media may also be found in violation of state legislation and could face similar penalties.

Broader Regulatory Focus for New South Wales

Social media is one of several areas Barakat plans to address as part of his regulatory responsibilities extending into 2026. Other key priorities include a comprehensive review of operators’ marketing practices across both direct and indirect advertising channels. Additionally, Barakat aims to strengthen casino governance and integrity measures, assess VIP and loyalty programs, and examine any obstacles players might encounter when attempting to close their gambling accounts.

In other New South Wales gambling news this week, police apprehended an individual for various offenses related to gambling fraud. The suspect is alleged to have misappropriated around AUD 14.8 million ($10.5 million) from businesses and trust funds to support a gambling habit.

Total
0
Shares
Previous Article

Visualize Group Acquires BMM Testlabs in Landmark Gaming Certification Deal

Next Article

Growth and Regulation Shape Brazil’s Emerging Gambling Market

Related Posts