Deceptive advertising and its connection to unregulated gambling in the gaming industry

Abstract

Streaming and on-demand entertainment content on new media platforms exposes viewers to gambling as influencers leverage audience’s trust within an insufficiently regulated industry. This article covers instances of influencers directing undisclosed endorsements for gamer gambling services to their audience, highlighting the presence of both inherent risk and of the need to regulate. On regulation, this article provides an evaluation of the regulatory framework already in place and whether consumers are sufficiently protected against deceptive advertising. It establishes a connection between undisclosed endorsements and unregulated gambling, in some cases involving minors. Lastly, it provides a thorough analysis on the effectiveness of the current regulatory framework as enforced by the FTC in the US and European influencer marketing legislation. This includes a discussion on the limitations of competent authorities to regulate in time juxtaposed by the strong interests of stakeholders within the gaming industry.