Colombian gambling regulator controls gambling advertising and sponsorship
Colombia’s gambling regulator Coljuegos has been given new powers in an effort to better control the country’s gambling market. It can now influence the guidelines for advertising, sponsorship and commercial communications in the online gaming sector.
OFFICIAL DOCUMENT deals with monitoring the marketing strategies of all online operators. It also introduces terms regarding bidding procedures and payments applicable to online players.
These new measures are scheduled to take effect on January 1, 2024, marking a new beginning for the marketing landscape of the Colombian gaming industry. Coljuegos hopes the new authority will better define the market.
Coljuegos Get More Power
The document highlights that Coljuegos plays a central role in overseeing the advertising landscape within the industry. It cited Law No. 643 of 2001, which sets out the framework for monopolies in gambling and games of chance. The law gives the state exclusive powers to fully regulate all forms of such gaming.
The upcoming regulations apply to all operators in the Colombian gambling market, provided they have the necessary Coljuegos license, which requires them to comply with regulatory standards set by the company. The regulations cover "all forms and content of communications designed to influence consumer decision-making" in the gambling sector.
Given the increasing prevalence of advertising on various physical and digital platforms, it was recognized that there was a need to intervene in areas where gambling operators operate. Coljuegos now has written authority to control the amount, space and methods used in the promotion of all online gambling platforms.
The document sets out general guidelines, including mandatory identification of advertisers in ads and a prohibition on promoting illegal practices. It also limits marketing spending by tying it to gross gaming revenue (GGR) and other operator-specific variables.
Restrictions apply to newly established operators for the first six months. During this period, they can spend up to 20% of their estimated GGR per contract year on promotions and advertising. In addition, all companies are required to provide Coljuegos with a detailed marketing investment plan expressed in monetary terms.
To ensure transparency and control, Coljuegos may request information on a quarterly basis. The regulation also applies to sports sponsorships and limits financial obligations according to established limits.
Coljuegos accused of corruption
As Coljuegos continues its push to promote gambling in Colombia, it also has to contend with some negative press. The Ministry of Finance recently issued a warning about corruption in the awarding of concession contracts for gambling establishments (JSA, by its Spanish abbreviation).
Among other things, part of the JSA will be conducted in person at various casinos with slot machines. The project is overseen by the company Coljuegos, which has also raised about 500 million Colombian pesos ($118,550) from the JSA.
The investigation focuses on concessions granted between 2018 and 2022. In some cases, Colhugos officials signed concessions only after being threatened with physical harm and extortion, according to the Treasury Department.
The situation remains delicate and Colhugos President Marco Emilio Hincapie Ramirez and other top officials are seeking protection. They want police to provide security until the situation is resolved because they have allegedly received threats to disrupt the investigation. Hincapié only took over last summer, which didn't make the reception particularly warm.
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Source: www.casino.org
