Should All Newspapers Ban Gambling Ads The Way The Guardian Has?

Well the Doc opened up the old mailbag today and here’s what poured out.

Dear Dr. Ads,

There I was, minding my own business and clicking through  MediaPost Marketing Daily, when I came across this piece by Ray Schultz.

‘The Guardian’ Rejects Gambling Advertising

The Guardian has banned gambling advertising out of concern for the damage done by chronic betting.

“Many people like the occasional bet, but the advent of 24/7 betting apps on smartphones, marketed to the public through billions of pounds and dollars in advertising across all forms of media, has placed high-stakes gambling machines in almost every pocket,” writes Anna Bateson, chief executive, Guardian Media Group.

Bateson continues that “Guardian journalists have reported on the devastating impact of the gambling industry in the UK and Australia, helping to shift the dial and ensure the issue remains high on the public agenda.”

Whaddaya think, Doc – are they smart to put their money where their mouth is?

– Ad Hawk

Dear AH,

Let’s start by recalling this classic formulation from the great press critic A.J. Liebling: “The function of the press in society is to inform, but its role in society is to make money.” So a tip o’ the pixel to The Guardian for valuing principle over principal in this case.

In an Inside The Guardian note, Anna Bateson expanded on the “devastating impact” of the gambling industry,

Problem gambling poses significant risks, leading to financial distress, mental health issues such as depression, and various personal and social problems for many individuals. The costs of problem gambling for individuals, their families, and for wider society, are significant.

Studies highlight a clear correlation between exposure to gambling advertising and increased intentions to engage in regular gambling.

Australia holds the unenviable title of having the highest gambling losses globally. Annually, approximately $25bn (£13bn) is lost to gambling, predominantly by those who can least afford it.

A growing chorus of media analysts and public health officials has been comparing the adverse effects of gambling ads to the damage cigarette advertising previously wrought. (The Doc sang that tune months ago.)

Australian website The Conversation published a post with the headline, “Sport is being used to normalise gambling. We should treat the problem just like smoking.”  Closer to home, Daniel Kaplan at New York Times-owned The Athletic quoted this political Cassandra in a ban-it-or-not piece.

“This is a public health crisis,” said U.S. Rep. Paul Tonko, D-N.Y., who has introduced a bill to ban sports gambling ads, comparing them to once upon-a-time ubiquitous tobacco spots. “What we’ve done is simply displace Joe Camel with this activity.

“What’s worse is they’ve replaced Joe Camel with celebrity spokespeople.” (Joe was a smoking cartoon camel popular in the ’80s and ’90s in ads for Camel cigarettes.)

According to ad-measurement firm iSpot, national sports gambling TV spots grew from $17.6 million in 2018, the year of the Supreme Court decision, to $278.4 million last year ($110 million in 2023 through April 30). And those figures do not include local TV or other outlets including websites, social media, billboards, radio and podcasts.

(To be sure graf goes here)

To be sure, the New York Times Company itself has a horse in this race, as was disclosed in Kaplan’s piece: “The Athletic, it should be noted, has a sponsor partnership with BetMGM.”

And – what are the odds, eh? – this ad was embedded slightly below that disclaimer.

That brings us to an equally serious problem, namely the emerging triad the Doc has dubbed the Axis of Wheedle: sports books, sports leagues, sports media. Case in point: FanDuel hooked up with the Tennis Channel during this month’s French Open to showcase betting lines before – and during – men’s and women’s singles matches.

A segment of the Tennisverse on Twitter has not taken kindly to that FanDuo.

Get used to it, people. Here’s the current list of FanDuel’s partners.

Multiply that by umpteen sports books, and you have the future: Games = Gambling.

And then, all bets on the integrity of sports are off.

What’s Up with the News Corpse – Er, News Corp – Ad?

Well the Doc opened the old mailbag today and here’s what poured out.

Dear Dr. Ads,

Rupert Murdoch has just split his News Corp empire in two: 21st Century Fox, the entertainment division, and the new News Corp print/publishing division. Wall Street sort of loves it, the New York Post really hates it, but most important – what do you think?

– Pieface

Dear Pieface:

Well you’ve certainly come to the right place to find out what I think. But before we get to that, let’s take your other points in order.

First, the News Corp empire is indeed split, as was officially announced in a two-page newspaper ad this week. Here it is from Monday’s New York Times (must’ve killed Murdoch to fork over major six figures to his arch-nemesis, eh?):

Picture 7

 

So there you have it – print and publishing on the left, complete with a new News Corp logo; entertainment on the right, complete with the updated 21st Century Fox name.

(Also new: Murdoch’s beleaguered News International has been rebranded as News UK. As Mark Borkowski wrote in The Guardian, “[a]t News Corp we are now witnessing a methodical detoxification of the brand, to allow it to function at its best once again.”)

As for Wall Street . . . well, this Reuters headline says it all:

A sign is seen outside News Corporation building in New YorkFree of newspapers, 21st Century Fox shines

(Reuters) – Wall Street rewarded Rupert Murdoch’s move to create a separate entertainment company, giving 21st Century Fox one of the richest valuations in the media sector on its first day of trading.

Investors had waited for Murdoch to split News Corp, giving its cable, movie and equity stakes in pay-TV assets their own spotlight away from the publishing division.

In the first day of trading as separate entities, “[s]hares in the new 21st Century Fox entertainment operation gained over 2 percent on Monday, or $1.1 billion dollars in market value, from its opening price.”

Shares of News Corp, meanwhile, fell 3 percent.

That’s reason number one the New York Post hates the split.  Reason number two is that the tabloid will have to survive on its own without the entertainment division floating its clockwork annual losses, variously estimated at anywhere between $15 million and $110 million.

Finally, what does the old Doc think about all this?

Well, it’s possible the Murdoch just fell out of love with the print side of his medialith (just jettisoned wife #3 Wendi Deng knows the feeling).

It’s also possible that family and financial advisers finally prevailed upon Murdoch to kick the papers out of the nest to see which ones fly.

That sound you hear is the Post, flapping its arms frantically.

Yo.