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Marketing and Sponsorship

Serie A Clubs To Lose $816M After Ban On Gambling Ads

New rules, which ban gambling advertising in football, will cost Serie A $816M in losses, according to Ashish Khanna of INSIDE SPORT. The Italian league expressed "extreme worry" with regard to the new ruling that put a "blanket ban on all advertising related to gambling." Serie A said in a statement that the new rules would create disparity with the other European countries and would bring "competitive disadvantages to Italian clubs, diverting abroad advertising budgets aimed at Serie A teams." More than half of the Serie A clubs "have sponsorship deals in place with firms from the gambling sector." Italy's Council of Ministers approved a "blanket ban" on gambling advertising in the country from Jan. '19. The ban will apply to "all gambling-related products and services across all media platforms" -- including TV, websites and radio -- and sports clubs will be prohibited from carrying sponsors from the industry. Heavy fines are being introduced for non-compliance, at a minimum of €50,000 ($58,430), with the fines "being donated to the fund against pathological gambling" (INSIDE SPORT, 7/5).

EXISTING DEALS: CALVIN AYRE's Steven Stradbrooke reported the ban on all gambling advertising and sponsorships will not "apply to existing contracts or national lottery operations." The latest draft submitted to the committee "includes a carveout" for advertising contracts between operators, media outlets and sports bodies "in progress at the date of entry into force of this decree." National deferred lotteries "will also be exempt from the ban" (CALVIN AYRE, 7/2). IGAMING BUSINESS reported the late inclusion of a clause in Article 8 of the so-called "Dignity Decree" to allow existing advertisers to fulfill their contracts beyond Jan. 1 was granted to "give gambling industry firms sufficient time to prepare for the changes," according to government ministers. LOGiCO, a trade body representing the interests of online operators in Italy, said that it was "perplexed" by the change in law. The body said, "Whilst fully sharing the concerns of the institutions with regard to problem gambling, LOGiCO does not believe that this ban can produce positive effects in terms of player protection or reduce -- and certainly not eliminate -- the risks derived from an uncontrolled practice of the games themselves" (IGAMING BUSINESS, 7/3).

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