Euro 2020 Betting Tip: The Odds Are in Favor of the House – Bloomberg

The return of international football tournaments in front of a live crowd is worth cheering, with the star power of Cristiano Ronaldo and Kylian Mbappe bringing fans out in droves tobars and pubs eagerto make up for a lost pandemic year.

Less cheerful is the fact many fans remain glued to their screens wherever they are judging by the boomin online gambling fueled by the easy smartphone betting and seductive advertising that captivated manyduring lockdown. With awareness of mental health, stress and thepublic-health costs of gambling addictionon the rise amid Covid-19, its a cue to consider whether current rules are tough enough.

Having a captive audience with cash to spare has been good for business: France, whose national team is the bookmakers favorite to win the UEFA European Football Championship, posted a record 2.2 billion euros ($2.6 billion) inonline sporting bets in the first three months of the year. The U.K., Europes top online gambling market, is also breaking records with events like the Grand National horserace. Shares ofLadbrokes owner Entain Plc and lottery operator La Francaise des Jeux have soared on rising profits.

Yet if the camaraderie of a tentpole sports event is increasingly linked to quick-firebets everywhere, its also thanks to a flood of breezy promotions, ads, time-limited bets and celebrity sponsorships thatincitepeople to bet with few reminders of the risks. While amix ofrules and voluntary restraint from the operators themselves are supposed to keep things in check, its time to heed persistent warnings from public-health experts that children and problem gamblers arent being protected enough.

Shares of Ladbrokes owner Entain and France's lottery operator have soared

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The content of these ads can cross the line: One recently-scrapped betting campaign in France depicted a young winner carried aloft through his neighborhood as his elders respectfully kneeled before him. But even less egregious ads give off unrealistic vibes of skills-based windfalls thathardly reflect reality. Industry heavyweights gross margins of more than40% show the house has a tendency to win.If youre playing more, youre losing more, Ladbrokess former boss said last year, adding that 99% of his customers lost.

Branding and advertising that aim to normalize gambling and sports betting have succeeded through ubiquitous logos and tweets. Measures like a voluntary whistle-to-whistle ban on in-match television advertising in the U.K.,where the industry spends 1.5 billion pounds ($2 billion) a year,mean little next to social media and team sponsorships.Top psychiatrists have warned its a public-health risk reminiscent oftobacco ads.

Operators are keen to promote what their business gives back to the economy: The European Gaming and Betting Association says its members in 2019 held 145 licenses across the continent andinvested 107.1 million euros in sport sponsorships. That wont go unnoticedpost Covid-19. New York GovernorAndrew Cuomo sees sports betting as a way to boosttax, while huge losses racked up by the likes of the U.K.s Premier League will need filling.

But at a time when athletes are becoming more outspoken over the products they sponsor, and as social attitudes even in bet-friendly Britain are hardening against glitzy gambling promotions, momentum is likely tobuild behind tougher rules. Focusing solely on education and research to preserve individual responsibility isnt going to cut it when data suggeststhe problem gamblingcouldaffect almost 1.4 million Brits.

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An outright ban on gambling advertising, as seen in Italy, isnt likely to see wide take-up and might work better as a threat than reality. But a ban ongamblingsponsorships ofsports teams, approved in Spain and under review in the U.K., could gain traction. Right now, too much responsibility lies in the hands of individual clubs that cant easily afford to turn down 5 to 10 million pounds.Norwich City recently ended its deal with online casino BK8 after fan uproarover the companys sexualized marketing materials.

Gambling companies might protest, but they may also appreciatea releveling of the marketing playing field against rivals. But the real pressure, as sports-marketing expert Richard Dentonof the Johan Cruyff Institute points out, will be onthe soccer teams whose attempts at pulling other revenue levers (such as the Super League) havent always worked.When theFormula 1s tobacco sponsorship ended in2005, it sparked a business-model revamp to make up for the shortfall. Other sports will need time and support to make similar changes.

Any new rules should be imposed carefully, and fairly,but given the social harms at stake, theyre worth a punt.

This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.

To contact the author of this story:Lionel Laurent at llaurent2@bloomberg.net

To contact the editor responsible for this story:Melissa Pozsgay at mpozsgay@bloomberg.net

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Euro 2020 Betting Tip: The Odds Are in Favor of the House - Bloomberg