Differentiate or die (Differ or die) is one of the world’s most popular marketing and positioning books. The famous American marketing guru Jack Traut wrote this book more than twenty years ago, but this work has not lost its relevance. Many business beginners do not understand the importance of differentiation because they produce a product that seems to be the same as the rest. This is what spoils their ideas and work, and the author clearly explains why. But is it really that important to be different? And what if not business, but the state takes such a position?
Latvia is the only member of the European Union (EU) and the European Economic Area, which has an absolute ban on gambling advertising. Latvian regulatory legislation provides for a complete ban on advertising outside the gambling venue. The law was written and adopted in the early 1990s, and the logic was very simple – you can open your casino or slot machine hall and count on those customers who, passing by or above the door, will see the sign and be interested in your service. With the advent of the Internet and licensed online gambling, this logic does not stand up to criticism. Today, the state issues licenses for a lot of money to organize gambling on the Internet, while not allowing anyone to say that you are allowed to provide it.
A blanket ban was introduced by the legislature under the pretext of consumer protection. However, one exception was made in this ban – it does not apply to the promotion of sweepstakes, lotteries and interactive raffles, for the organization of which exclusive rights have been granted to a state capital company Latvian Lotto. Such an exception in favor of a state monopoly shows that a complete ban on advertising for all other gambling operators has been introduced to encourage consumer participation specifically for the state monopoly Latvian Lotto in organized games rather than protecting consumers.
All over Europe – gambling, in Latvia – no
It was possible to create such a pun in the regulations due to the fact that, in the sense of the Latvian legislation, raffles, lotteries and interactive raffles are not considered to be a form of gambling – in contrast to the way it is in other European countries. You can open the laws of many European countries and read that lotteries are a form of gambling. Now many actively use ChatGPT – submit a request is the lottery a game of chance. The answer will be extremely simple and very short – yes.
As a result, the restriction of gambling advertising in Latvia acts as a form of support for the state monopoly and distorts competition. It is aimed at financial gain for the exchequer rather than consumer protection.
Less information means more risk for consumers
From a legal point of view, an absolute ban on advertising imposed on licensed merchants – gambling operators in Latvia – is not a proportionate means of consumer protection. In Latvia, atypically high, problematic gambling is not observed and other, less restrictive measures are available to protect consumers.
On the other hand, from the point of view of consumer rights and protection, an absolute restriction on gambling advertising, which currently exists in Latvia, actually makes the gambling environment more unsafe, because licensed operators who provide safe services and comply with all state restrictions cannot tell about their products. On the other hand, unlicensed or illegal websites, which do not have any responsible gaming tools, including the register of self-opted persons, do not comply with this ban, and their advertisements reach Latvian consumers.
According to the results of the SKDS survey conducted in 2022, 71% of respondents answered that they did not know how to distinguish a licensed website from an illegal one. Therefore, thanks to a complete ban on advertising, which essentially means a ban on information, the shadow economy in the gambling industry is supported.
Distorted competition
A ban on gambling advertising that is not limited to a state monopolist Latvian Lotto, which has been granted the exclusive right to organize lotteries, raffles and interactive raffles on a national scale, is not compatible with the regulatory legislation of the European Union. This distorts competition and places it directly at an unfair disadvantage compared to other service providers Latvian Lottowhich, unlike other service providers, has no administrative or legal barriers to advertising its services.
In the last years Latvian Lotto has significantly expanded its range of interactive lottery products, moving away from the traditional lottery concept, and its offering has become equal to the interactive gambling games offered by private licensed gambling operators. The state monopolist interferes more and more in the activities of merchants, which is confirmed by a remarkable Latvian Lotto increase in turnover. Therefore, the state is interested and continues to protect it from advertising restrictions.
Advertising children’s mornings
Latvian Lotto in the unaudited annual report for the period from 01.01.2021. until 31.12.2021 it is indicated that in 2021 it spent 1,262,605 euros on advertising and marketing services. These funds Latvian Lotto is used to publish news about its organized raffles not only on the homepage www.latloto.lvbut also on news portals as well as social media Twitter, For friends.lv, Facebook, Instagram, YouTube. Fat Latvian Lotto organized number draws for over 20 years SuperBingo videos are broadcast on television in children’s mornings – every Sunday morning at ten o’clock. Other raffles and lotteries organized by Latvian Lotto are also advertised on television, with special emphasis SuperBingo prize pool changes, current bonus games and international lotteries Viking lottery and Eurojackpot winning savings. In addition Latvian Lotto is running a series of product advertising campaigns, currently emphasizing the new national sweepstakes Sports lottery. as well as Latvian Lotto advertising campaigns are often aimed at normalizing and associating gambling with public good.
One of the most generous advertisers
Latvian Lotto turnover in 2022 was 78.999 million euros, profit – approximately 12.228 million euros. For advertising and marketing activities Latvian Lotto spends no less than a million euros per year, thus becoming one of the most generous advertisers in Latvia. There are no legal or practical restrictions on the advertising of sweepstakes, lotteries and interactive sweepstakes, and advertising of these games can be found on television, social networks and other public places.
It can be established that the restriction of gambling advertising is part of the state’s gambling policy, which is mainly characterized by the creation of new games and their promotion in order to encourage consumers to participate in certain games and to generate income from them for the state budget. It must be concluded that an absolute ban on gambling advertising, which does not apply to the state gambling operator – lotteries, lotteries and interactive lottery companies Latvian Lotto – not only does not protect consumers, but even has the opposite effect, because Latvian Lotto sweepstakes, which are considered gambling in Europe, are not simply broadcast, but are broadcast on holiday mornings, reaching an underage audience, which goes against any principles of addiction prevention and a safe gaming environment. Moreover, such an inconsistent and discriminatory ban is in conflict with European Union legislation.
2023-08-31 03:27:54
