During a plenary meeting at the end of April, deputies of Mäjilis (Parliament of the Republic of Kazakhstan) approved in first reading a bill on gambling, lotteries, and lottery activities. The bill focused on minimizing outdoor advertising. The speakers said they have been working on it for a year and a half. This step has also been considered a major move forward in the fight against gambling addiction by the Ministry of Tourism and Sports of Kazakhstan.
Deputies proposed banning all types of betting and casino advertising, including those on houses, vehicles, as well as online. The ban could also apply to broadcasters and bloggers.
SBC Eurasia spoke with Azamat Kasymov, Legal Advisor of the Self Regulatory Organisation Association of Bookmakers of Kazakhstan about the possible impacts of such initiatives. Kasymov will also participate in the “Thriving Frontiers: Online Gaming in Emerging Markets” panel at the SBC Summit Tbilisi in June 2024.
– In your opinion, what is the purpose of banning gambling advertising?
– This can be explained quite simply, in my opinion. Everyone is exposed to advertising, and it is difficult to regulate. Thus, there’s always an easier way to ban something.
The bill’s supporters argue that advertising directly contributes to gambling addiction. Studies supporting such claims are rare. Advertising bans have been proposed by those who believe that eliminating it will completely solve the gambling addiction problem. This approach, however, ignores the complex nature of the problem and does not provide comprehensive, scientifically based solutions.
– Gambling advertising bans could also have negative consequences, what are they?
– At least two consequences can be discussed: legal and economic.
The ban on online betting advertising does not consider the fact that in Kazakhstan, as in most countries with open access to the Internet, there is no effective tool for monitoring and blocking illegal activity. Therefore, foreign gambling operators will continue to operate outside Kazakhstan’s jurisdiction. Legal gambling businesses will be at a disadvantage as a result. This will lead to even more illegal gambling and betting, in which there is no concept of responsible gambling, such as an age limit, time limit, or other restrictions.
Lost profits are the second important factor. All media will lose a significant revenue source, including television, radio, and the Internet. The President of Kazakhstan previously emphasized the need for further democratization, which is impossible without independent and responsible media. Thus, in the absence of advertising budgets, how will these independent media survive? It will result in job losses and tax losses for the government. I find this unacceptable and contrary to Kazakhstan’s democratic principles.
The ban is intended to finally address the issue of advertising, but it always increases the problem of the illegal market, which poses a serious threat to the national economy.
– Are there any alternatives to regulating gambling advertising? Can we strike a balance between limiting gambling and maintaining market competitiveness?
– Advertising in the gambling industry is extremely complex and requires a more nuanced approach in order to regulate. Before banning advertising, it is important to take into account its direction or “targeting”. As an example, it is necessary to determine which categories of people should be protected from advertising by betting companies – like minors or non-sports enthusiasts.
It is also possible to limit advertising on television and radio not related to sports between 7 am to 9 pm. Meanwhile, advertising in specialized sports media can be preserved, since they target an audience aware of gambling risks.
Moreover, you could introduce mechanisms to control advertising content so that it emphasizes that sports betting and betting are not ways to make money, but rather a form of entertainment. A strong emphasis should also be placed on the principles of responsible gaming and safety precautions.
You can only achieve balance by taking into account the interests of both parties.
– What is your opinion on the government’s ability to tighten gaming laws?
– Government regulation of gambling and betting is currently based on conservative principles. This topic is often used by populist initiatives to boost the political careers of individuals in our country. Unfortunately, we can expect further tightening in the future. However, adopting ineffective amendments would worsen gambling addiction rather than solve it, so it is important to keep this in mind.
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