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Gambling is on the rise in many parts of the world as a result of the rising cost of living. This is notably the case in Australia, where TikTok plans to roll out ads for sports betting on its platform.
Gambling is on the rise in many parts of the world as a result of the rising cost of living. This is notably the case in Australia, where TikTok plans to roll out ads for sports betting on its platform.
However, TikTok will only show ads from one sports betting company, Sportsbet, according to information reported by ABC News. These take the form of short humorous videos, similar to those usually found on the social network, tapping into Australians' love for horse racing. At first glance, there is nothing to suggest that they are advertisements, except for a reference to the bookmaker Sportsbet and a warning, in the caption, about gambling addiction.
This pilot project is unprecedented on the social network. For good reason, its own community rules stipulate that the platform prohibits the "promotion, sale, solicitation of, or facilitation of access to casinos, gambling activities, sports betting, fantasy sports, lotteries, whether it is an online website or a physical establishment, where there is money cashing-in or cashing-out."
TikTok has, however, made an exception for Sportsbet, stating that the ads deployed are only for its users over the age of 21. Australian law stipulates that Australians must wait until they are 18 years old to gamble on scratch cards and draws, sports betting, horse racing and poker.
However, many specialists and experts on addiction are opposed to this initiative, which, they say, risks encouraging the practice of gambling among minors. Minors represent a large part of TikTok users, and that's without counting those who pretend to be adults on the platform. In fact, 32% of children aged 8 to 17 pretend to be adults on social networks, according to a recent study by Ofcom, the UK media regulator. "So this whole question of platforms gating content for users under a certain age is a little bit messy," says Nicholas Carah, University of Queensland digital cultures and societies director, speaking to ABC News.
Losses of some A$25 billion
This problem of moderation is especially worrisome because minors represent an easy target, as well as a virtually endless supply of new customers, for gambling operators. Young TikTok users are particularly susceptible to excessive gambling behavior and even outright addiction due to their emotional fragility.
Protecting the health of minors may be presented as a public health priority, but the Australian federal government is only able to regulate gambling advertising on television, radio and streaming sports events -- not on social networks. This legal vacuum represents a real business opportunity for TikTok, according to Nicholas Carah. "I think they're trying to just figure out what categories of advertising are worth the trouble, so that they make enough money off them, but don't face too much kind of heat from the public or regulators," he told the Australian news outlet.
Beyond the risk this promotional campaign may pose to young TikTok users, it could also increase the risk of addiction among more mature audiences. One in ten Australians over the age of 18 said they had engaged in online gambling or sports betting in 2021, according to a report of the Australian Communications and Media Authority (ACMA). An increase compared to the previous year.
This gambling craze is not without consequences, both for the mental health of gamblers and for their finances. The Australian Gambling Research Centre estimates that the country's residents have lost nearly A$25 billion (around US$16.7 billion) between 2018 and 2019, trying to win big. That's more than any other nationality.
