Casinos bypass gaming rules using Facebook ads

Maltese casinos and other gaming parlours that are advertising their outlets on social media could be risking their licences, if they are found in breach of gaming promotion rules.

Despite the law prohibiting the advertising and promotion of gaming events and casinos on media not regulated by the Local and Gaming Authority (LGA), Maltese-based casinos and gaming establishments have resorted to using social media websites, particularly Facebook pages, to advertise their products.

The Gaming Act allows casinos and gaming parlours to advertise only in locations frequented by tourists, including airports, seaports, hotels and holiday complexes, yet social media advertising does not seem to fit the bill under the gaming provision.

Even newspapers are prohibited from featuring items that could promote gambling inside a designated parlour or casino: a case in point was the prosecution of MaltaToday for featuring an advertorial on the Dragonara Casino's restaurant that made a fleeting reference to gaming.

"Online advertising on social media by all licensed land-based casinos and gaming establishments are regulated by the LGA, and the licensees must ensure compliance with the laws," LGA executive chairman Joseph Cuschieri explained.

In light of the breaches of law being brought to light, Cuschieri argued that, "any possible breaches of the law would be rectified by enforcement action".

The LGA said that upon the conclusion of investigations, "it will take all the necessary actions as is pertinent to it at law if it is confirmed that the provisions are being breached".

As the law stipulates, if any director or manager of the casino licensee is convicted of breaching the law, the casino license may be cancelled.

The LGA is tasked with ensuring compliance with the relevant laws and supervising any advertising activities.

Questioned whether the adverts have become customary and are being overlooked by the LGA, Cuschieri refused to provide any further details pending further investigations. "Upon investigating any possible breaches, the LGA will request the licensees in question to provide submissions justifying their position," Cushieri said.

If found guilty of such offences, the casino licensee apart from having his or her license revoked, may even be liable to a fine of up to €233,000 or a maximum two-year imprisonment.

Despite these rules, casinos are still advertising and promoting future gaming events and inviting potential gamers in participating. Testament to this is the bombardment on Facebook: the pages of three local-based casinos are evidently littered with the advertising of upcoming events and with promotions. The tactic seems to be working as many aspiring gamers and potential customers are interacting with the casinos on their respective social media pages.

The Dragonaro Casino at St Julian's advertised its Mystery Jackpot and promoted the '2013 Dragonara Poker Open' on Facebook. On 6 November it also called for gamers to try their luck with the share of the €100,000 prize pool in the poker buy-in event.

Likewise, the Casino at Portomaso has been advertising their double roulette and the upcoming' IPS Malta December Tour' and the 'Alliance Poker Tour' and 'Super stack Malta' events. Qawra-based Oracle Casino has also been advertising its November Poker Tournament and November Slots Bonus.

The number of fans of each casino varies, but one particular casino in St Julian's has garnered more than 10,000 'likes' on its Facebook page, enabling it to advertise games to a broad audience, the majority of whom are Maltese.

Around 18,000 people a month play in Maltese casinos, including tourists and foreigners who come in on gaming junkets to avail themselves of the low taxes on winnings.

On the other hand, adverts on other spectrums, namely hotels, airports, seaports and holiday complexes tend not to reach Maltese people as they are primarily targeted at tourists.

With adverts not being placed in media that are available to minors, such as newspapers, it is evident that on Facebook minors are now possibly subject to the bombardment of adverts as they are too 'fans' of the respective Facebook pages.

Gaming establishments, particularly casinos, are subject to codes of conduct that prohibit them from allowing gaming by under-age persons. In Malta, persons who have not attained the age of 25 are prohibited from entering into gaming establishments and casinos.

Around 18,000 people a month play in Maltese casinos, including tourists and foreigners who come in on gaming junkets to avail themselves of the low taxes on winnings.