The chairman of the management board of the Bulgarian Association of Gambling Activities (BAHT) sent a letter to the National Assembly. In it, Stilyan Shishkov sets out his position on the requested suspension of gambling advertisements.
We publish the entire position without editorial intervention:
DEAR MR. PRESIDENT,
DEAR LADIES AND GENTLEMEN, PEOPLE’S REPRESENTATIVES,
On behalf of the Bulgarian Association of Gambling Activities, we express an opinion, which we ask to be taken into account in the discussion of the submitted ZID of ZH.
In the accompanying letter addressed to the Speaker of the National Assembly to the draft of the ZID of ZH, the petitioners requested “that the draft law be presented for consideration and voting according to the procedure established for this purpose”.
The established order according to Art. 71, para. 3 of the Rules for the Organization and Activities of the National Assembly stipulates that when draft laws are introduced by national representatives, the preliminary impact assessment shall be in accordance with the methodology attached to the rules, as “Art. 26, paragraph 1 of the Law on normative acts”. This reference obliges the importers to take into account the principles of “necessity, reasonableness, foreseeability, openness, coherence, subsidiarity, proportionality and stability”.
Within the calendar year 2024, BAHD participates in numerous discussions organized by the Ministry of Finance, the Council for Electronic Media, the National Council for Self-Regulation, non-governmental organizations and those that unite the interests of their members in the field of the gaming industry.
The need to introduce additional measures to limit advertising so that vulnerable groups are protected is shared not only by BACD, but also by all non-governmental organizations in the sector. In view of applicable EU legislation, in particular the Audiovisual Media Services Directive (AVMSD), which promotes the use of self-regulation and co-regulation of advertising, including gambling advertising in the context of the EC Recommendation of 14 July 2014 on “the principles for the protection of users and players of online gambling services and for the prevention of online gambling among minors”, (2014/478/EU), there is currently an attempt to create a self-regulatory measure, which is materialized in the signed MEMORANDUM BETWEEN THE LICENSEES ONLINE BETTING ORGANIZERS FOR RESPONSIBLE GAMBLING ADVERTISING IN THE REPUBLIC OF BULGARIA effective for 2023 and 2024.
In addition to the current Memorandum, licensed promoters have proposed to the National Self-Regulatory Council to vote on changes to the Ethical Rules for Gambling Advertising and Commercial Communication so that restrictions are introduced in respect of:
Announcing the amount of winnings and/or subject prizes, amount and number of bonuses;
The broadcast of television and radio advertising only in the time zone from 6:00 a.m. to 7:00 p.m., except within 10 minutes before, after and during the live broadcast of sports events and their broadcasts;
The placement of gambling advertising on clothing, equipment or products intended for minors;
Prohibition of participation in gambling advertising for persons who: a) have not reached the age of 23; b) are characters and images from films or programs whose main audience is children; and/or c) are active journalists – news presenters;
Placing gambling advertising on outdoor billboard-type facilities within 100 m of kindergartens and schools within the meaning of the Preschool and School Education Act;
Any indirect, permissible gambling advertisement to contain a message of sensible betting (responsible gambling);
Representing participation in games as an important part of an individual’s lifestyle, as a substitute for social contacts and/or a possible solution to social, educational, personal and professional problems, as an alternative to employment, a solution to financial problems or a form of financial investment and an occupation conducive to social success.
Safeguards are being developed within the industry to introduce restrictions on participation in gambling organized online. It should be noted that a large number of gambling organizers already offer such measures to their registered participants, but like the Memorandum, these measures are not binding on all organizers and are not observed by those who have not signed these documents.
BAHD also participates in the work of the European Gaming and Gambling Association (EGBA), where it has the opportunity to participate in meetings with representatives of non-governmental organizations in the EU member states in the field of gambling.
When discussing the issues of gambling harm and socially responsible gaming, advertising is usually placed at the core of this issue. Within the framework of the community, there are models in the entire possible spectrum – from a complete ban, to detailed instructions and manuals for creating and distributing advertising. A successful model by definition is considered to be one that has engaged the attention of potentially vulnerable groups with other activities and has at least not resulted in an increase in traffic to the unlicensed sites.
Experience shows that countries where advertising was completely banned have either already lifted or announced an imminent lifting of this restriction.
In addition to Europe, these basic understandings have also been adopted in the United States where online gaming has recently received licensing regimes as a consequence of the inability to control the growth of the gray sector.
With the petitioners’ proposal to ban television and radio advertising, apart from not accounting for the potential effect on the growth of the gray sector, television and radio stations themselves are not identified as interested parties on whom the proposed ZID of ХХ would have a direct impact.
ABRO: Banning gambling advertising will lead to a shift to illegal providers
In view of the upcoming European Football Championship, television stations have already planned their budgets. There are concluded contracts and commitments. Predictability and stability are principles that importers respect, as well as the provision of Art. 26, para. 1 of ZNA negotiates.
Apart from that, regarding the ban on internet advertising, it should be kept in mind that the effect of the operation of such a provision will only affect domestic legal entities. This restriction will have a favorable effect on foreign companies, with registrations outside the territory of the Republic of Bulgaria, to which these advertising contracts will be redirected.
We believe that the petitioners’ proposal is also unfounded in the context of EU Decision C-347/09, according to which “national legislation (should) only allow the use of advertising that is moderate and strictly limited to what is necessary to target consumers to controlled play networks’. In addition, Decision C-410/07 of the Court of Justice of the EU provides that “advertising shall remain moderate and strictly limited to what is necessary to thereby direct users to permitted gaming networks. On the other hand, such advertising cannot in particular aim to promote consumers’ natural attraction to games by stimulating their active participation in them, in particular by presenting games as a simple activity or by giving them a positive image related to the fact , that the collected revenue is directed to activities of general interest or further by increasing the attractiveness of the games by means of enticing advertising messages describing illustrious big winnings”.
Experience shows that the Bulgarian user of online gambling games does not show special attention and criticality regarding his choice not to bet on unlicensed sites – on the one hand, and on the other hand, the introduction of restrictions turns out to be ineffective given the technological possibilities to access platforms through proxy addresses. In this regard, and as the experience of other European markets shows, the restriction of advertising leads to the increase in the activity of unlicensed sites, which respectively reduces the state’s ability to collect taxes and fees from gambling activities, as well as to ensure the protection of these users.
It is worth noting that in the PRELIMINARY IMPACT ASSESSMENT, the petitioners cited as the basis for their legislative initiative the restriction of the “proliferation of gambling” and “reduction in their popularity”. This effect, as experience shows, is not achieved either by banning advertising or by banning activity. Strict regulations, introduction of treatment and prevention measures, conducting campaigns for responsible gaming, maintaining a balance to support sports clubs, holding cultural events, improving the social environment, … – this is the direction in which it is necessary to changes the regulations.
Regardless of the fact that the proponents have foreseen the creation of a new Ordinance with a view to spending the contributions for socially responsible behavior, the assessment states that no changes are required in other normative acts. In the ZID of the ZH, the importers indicate the need to change Art. 237 of the Penal Code, part of Section II, Offenses in separate economic branches, where sanctions are provided for the killing and catching without proper permission of big game; for killing or catching small game without a hunting ticket, “as well as one who, though in possession of a hunting ticket, kills or catches such game at a prohibited time, in a prohibited place, or by prohibited means.”
It is obvious that the proponents have not taken the necessary time to address all the issues, affected groups and structural changes that will be required by the adoption of this proposal.
BAHD does not share the view of the petitioners that “the change corresponds to the principles established in national and European law to protect the public interest while observing freedom of speech and non-discrimination”.
The present proposal is being tabled without discussion with industry, without public debate, without analysis of the potential impact on the media and, above all, without justification for urgency, given the timing chosen for the table: Two working days before the declared parliamentary recess due to the holding of the new parliamentary and European elections .
The timeframes proposed as exceptions regarding entry into force should be motivated in such a way as to understand the extraordinary nature of the intended entry “within three days of its promulgation in the State Gazette” with the exception of paragraph 1, item 2, which shall enter into force three years after its promulgation”.
DEAR MR. PRESIDENT,
DEAR LADIES AND GENTLEMEN, PEOPLE’S REPRESENTATIVES,
We call for compliance with the established order and principles of the Act on Regulatory Acts for consideration and voting of the submitted draft law.
With respect:
Stilyan Shishkov
Chairman of the Management Board of the Bulgarian Association of Gambling Activities
