The UK’s Advertising Standards Authority (ASA) has banned several social casino ads promoted on TikTok. The ads, created by SpinX Games Ltd, Dataverse Co Limited, Huuuge Global Limited, Mobee Co Ltd, and Zeroo Gravity Games LLC, were flagged for misleading consumers into thinking they could win real-world money. The ads in question showcased slot-like games without clarifying they were social casino apps, where no actual money can be won or withdrawn.
Misleading Casino-Like Ads
The ASA highlighted that the social casino games presented on TikTok resembled gambling products. For instance, Zeroo Gravity Games’ Cash Tornado displayed imagery and sound effects reminiscent of real slot machines. Phrases like “hitting the jackpot” were used, which the ASA found to mislead users into associating these games with real-money gambling.
Each company involved was found in breach of the UK’s Code of Non-broadcast Advertisingand Direct & Promotional Marketing (CAP Code). This includes rule 3.1, which dictates that marketing communications must not “materially mislead,” and rule 3.3, which emphasizes the need for ads to provide material information.
One of the companies, Mobee Co Ltd, failed to respond to ASA inquiries, violating rule 1.7, which requires timely cooperation with regulatory bodies. The ASA flagged this as an “apparent disregard” for the CAP Code, reinforcing the importance of compliance in advertising practices.
The ASA’s Wider Crackdown
This ruling forms part of the ASA’s broader efforts to monitor and regulate paid-for gambling-related ads, particularly those that target vulnerable groups or young people. TikTok, which has stringent advertising policies, was quick to act, removing all the problematic ads from its platform once the issues were brought to light. The platform also has clear restrictions against ads that imply real-money winnings, which all the social casino apps failed to adhere to.
The ASA’s crackdown reflects growing concern about misleading advertising in the digital space, especially on platforms like TikTok, where young users could be exposed to these types of ads. Despite the social nature of the games, the ads conveyed a message too closely associated with real-world gambling, increasing the risk of consumer misunderstanding.
Implications for the Social Casino Industry
The decision is a stark reminder for companies operating in the social gaming sector to ensure their marketing materials are clear and truthful. Social casinos typically operate on a virtual currency system, and while they may offer prizes, they do not translate into real-world cash winnings. However, the lack of clarity in advertising can lead to users, particularly younger audiences, thinking otherwise.
Companies like VGW, which have taken a more transparent approach to the sweepstakes model, are now setting the standard. Meanwhile, the companies cited by the ASA will need to overhaul their advertising strategies, ensuring that no future campaigns mislead players into believing that real-money prizes are on the line.
Source:
The Advertising Standards Authority (ASA), asa.org.uk, September 2024.
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