`COMPLAINT NUMBER 16/330 COMPLAINANT. R. McBride ADVERTISER. New Zealand Racing Board ADVERTISEMENT. TAB Television. DATE OF MEETING 27 September 2016

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1 `COMPLAINT NUMBER 16/330 COMPLAINANT ADVERTISER ADVERTISEMENT R. McBride New Zealand Racing Board TAB Television DATE OF MEETING 27 September 2016 OUTCOME Not Upheld SUMMARY The television advertisement from the New Zealand Racing Board, screened on Prime, promises people using the code name August and signing up for a TAB account for the first time, a refund on an unsuccessful first bet of up to $20. The Complainant was concerned that the advertisement referred to gambling at the TAB as risk free when no gambling was risk free and it was clearly an addictive activity for many people. The Complainant was further concerned at the placement of the advertisement in a broadcast of action at the Olympic Games. The Complaints Board agreed the advertisement promoted a specific sign-up offer of a refund of a first bet of up to $20 that was literally risk free. The advertisement did not breach the Code of Advertising for Gaming and Gambling. The Complaints Board did not consider the placement of the advertisement breached the Code of Ethics. The Complaints Board ruled the complaint was Not Upheld. [No further action required] Please note this headnote does not form part of the Decision. COMPLAINTS BOARD DECISION The Chair directed the Complaints Board to consider the advertisement with reference to Principles 2 and 3 and Guideline 2(c) of the Code of Advertising for Gaming and Gambling. This required the Complaints Board to consider whether the advertisement had observed a high standard of social responsibility and whether the advertisement, by implication, omission, ambiguity or exaggerated claim was likely to mislead or deceive consumers, abuse their trust or exploit their lack of knowledge, exploit the superstitious or without justifiable reason play on fear. Guideline 2(c) also requires advertisements not to encourage consumers to participate excessively or beyond their means. The Complaints Board ruled the complaint was Not Upheld. The Complaints Board first considered the Complainant's objection to the TAB advertisement which they had seen screened during coverage of the Olympic Games on Prime Television.

2 The Complainant noted: The advertisement for sport gambling at the TAB said it was 'risk free'. This is NOT the case. No gambling is 'risk free' as this is clearly an addictive activity for many people. To embed the advert in the Olympic broadcast like this is devious a problem for the people and their families whose lives have been wrecked by gambling. The Complaints Board then turned to the response from the Advertiser, the New Zealand Racing Board (NZRB), which stated its statutory objectives were to facilitate and promote racing and sports betting to maximise its profits for the long-term benefit of New Zealand racing. The Advertiser submitted the advertisement sought to promote joining the TAB and betting on sport in accordance with the NZRB's statutory objectives and was positioned in a socially responsible manner. The NZRB stated: In the context of the TAB advertisement, 'risk free' means that if you invest $20 on your first bet, but your bet is unsuccessful, you will receive your bet amount back. The 'risk free' element is positioned alongside this single bet, up to the nominal value of $20 and is not attempting to position all gambling as risk free. The Advertiser accepted that bets beyond an initial bet carried some inherent risk and the offer had been carefully positioned only alongside the initial bet. The Advertiser said the positioning of the advertisement during Olympic Games coverage on Prime Television was not devious but rather an attempt to engage with people who liked watching sport and might wish to become TAB customers. The Advertiser said the advertisement did not mislead customers, and neither exaggerated the chances of winning nor the size of the prize, and: Nor does it imply the bettor's skill can influence the outcome of the bet. More so, by offering a 'losing bet refund' it actually clearly acknowledges that some bets are unsuccessful. The Complaints Board noted the response from the Commercial Approvals Bureau (CAB) which reported it had approved the TAB advertisement with a GXC classification. This prevented it from playing to audiences of an inappropriate age. The CAB view was that the Complainant had misunderstood the advertised offer. The term risk free referred to a policy where a single, one-off $20 bet would be fully reimbursed if it did not return a winning result, effectively mitigating the potential loss element from that bet. The Complaints Board noted the Complainant's major issue was with the words risk free and the Complainant had extrapolated the term out to encompass betting in general. The Complaints Board acknowledged this perspective but agreed the offer in the TAB advertisement was for a particular sign-up promotion in which a new bettor would be refunded the money for a losing bet of up to $20. The Complaints Board saw this as making the advertised and clearly defined offer literally risk free. It also agreed there was no encouragement for people to take risks or over-spend in the advertisement. The Complaints Board then considered the issue of placement. The Complainant was concerned the broadcast of the advertisement during coverage of the Olympics was devious and likely to cause further problems for families with addicted gamblers. The Complaints Board agreed that a gambling addiction is a serious problem but said the placement of the advertisement during a sports event like the Olympics was in context with the promotion of sports betting in general. The Complaints Board agreed the advertisement had been prepared and placed with a high standard of social responsibility and was not in breach of the requirements for truthful presentation and responsible participation in gambling. Accordingly, the Complaints Board ruled to Not Uphold the complaint. 2

3 DESCRIPTION OF ADVERTISEMENT The 18-second New Zealand Racing Board television advertisement promises a refund of up to $20 to first-time TAB bettors if they use the code August and lose on a first bet of up to $20. The advertisement opens with a blue sky background and the TAB logo below a large image of half a golf ball. A male voice-over says: Sign up this August for a $20 risk free bet for new customers... The words $20 risk free bet for new customers are repeated onscreen. The presenter continues:...on a world of sport like golf, basketball, tennis, football, boxing. At each mention an image of an appropriate ball appears, with a boxing glove at the mention of boxing. A world globe appears and the voice-over and words on the screen ask the viewer to join now with code August. The voice-over continues:... for a refund of $20 if your bet misses out. TAB, are you in. The words TAB, are you in are repeated on the screen followed by the TAB address and terms and conditions apply. COMPLAINT FROM R. MCBRIDE The advertisement for sport gambling at the TAB said it was 'Risk free'. This is NOT the case. No gambling is 'Risk free' as this is clearly an addictive activity for many people. To embed the advert in the Olympic broadcast like this is devious - a problem for the people and their families whose lives have been wrecked by gambling. CODE FOR ADVERTISING GAMING AND GAMBLING Principle 2 Advertisements should observe a high standard of social responsibility. Principle 3 - Advertisements should not by implication, omission, ambiguity or exaggerated claim mislead or deceive or be likely to mislead or deceive consumers, abuse the trust of or exploit the lack of knowledge of consumers, exploit the superstitious or without justifiable reason play on fear Guideline 2(c) - Advertisements should not encourage consumers to participate excessively or beyond their means. RESPONSE FROM ADVERTISER, NEW ZEALAND RACING BOARD The New Zealand Racing Board (NZRB) operates the TAB and its advertising. We have prepared the following comments in response to complaint 16/330 regarding the TAB television advertisement (Key # TAB/15/126). The NZRB's statutory objectives (under the Racing Act 2003) are to facilitate and promote racing and sports betting to maximise its profits for the long-term benefit of New Zealand racing. The NZRB operates the TAB Brand to facilitate this. The NZRB's advertising of the TAB, including its account membership and its products, is an important vehicle for achieving its statutory objectives. As a responsible gambling operator, the NZRB is careful to ensure our advertising complies with the standards set by the Advertising Standards Authority (ASA). The NZRB does not consider there has been any breach of the ASAs Code for Advertising Gaming and Gambling - Guideline 2 (c), Principle 2, Principle 3. 3

4 The TAB Advertisement The TAB Advertisement promotes a new TAB account signup offer. The Advertisement explains that if a new customer signs up for a TAB account using the code 'August' and places a bet that is unsuccessful (i.e. the bet loses) the TAB will refund that bet up to $20. The offer is referred to as a $20 'risk free' bet. The Complaint The complainant feels that describing the joining offer as a 'risk free' bet is misleading as no gambling is 'risk free'. The complainant also express their displeasure at the placement of the TAB advertisement in the Olympic Broadcast on Prime - describing this as 'devious'. Guideline 2 (c), Principle 2, Principle 3 The ASA has indicated that it considers the relevant sections of the ASA Code of Practice to be: Code for Advertising Gaming and Gambling - Guideline 2 (c), Principle 2, Principle 3 Specifically: Guideline 2 (c) - Advertisements should not encourage consumers to participate excessively or beyond their means Principle 2 - Advertisements should observe a high standard of social responsibility Principle 3 - Advertisements should not by implication, omission, ambiguity or exaggerated claim mislead or deceive or be likely to mislead or deceive consumers, abuse the trust of or exploit the lack of knowledge of consumers, exploit the superstitious or without justifiable reason play on fear. The NZRB does not consider that the TAB Advertisement breaches Guideline 2 (c), Principle 2, or Principle 3. Each of these Principles/Guidelines are discussed in turn below. Guideline 2 (c) The TAB advertisement does not encourage customers to bet excessively or beyond their means. To the contrary, the offer in the TAB advertisement encourages customers to place a bet only up to the nominal value of $20 as that is the maximum amount that would be refunded by the TAB. Further, as it is a refund bet customers will either get a return on their bet or they will get their initial stake money refunded so undertaking the action prompted by the advertisement does not encourage them to bet beyond their means. Principle 2 The NZRB considers that the TAB Advertisement reflects this principle. The TAB advertisement seeks to promote joining the TAB and betting on sport, in accordance with the NZRB's statutory objectives. This is positioned in a socially responsible manner. In the context of the TAB Advertisement, 'risk free' means that if you invest $20 on your first bet, but your bet is unsuccessful, you will receive your bet amount back. The "risk free" element is positioned alongside this single bet, up to the nominal value of $20 and is not attempting to position all gambling as risk free. The NZRB accepts that bets beyond the initial bet 4

5 carries some inherent risk and as such, was careful to position the offer alongside the initial bet only. The placement of the TAB advertisement in the Olympic Games coverage on Prime was not devious. It was an attempt to engage with people who like watching sport and who may not be TAB customers, but may wish to become one in the future. Principle 3 The TAB advertisement does not mislead or deceive customers. The offer is clearly stated in the voice over "Sign up this August for a $20 risk free bet for new customers on a world of sport like golf...rugby. Join now with the code 'August' for a refund up to $20 if your bet misses out." This is supported through graphics on screen reinforcing the offer. A terms and conditions link is also clearly displayed on the end frame of the TAB Advertisement. A new customer who followed these steps would have received either a positive return on their bet or a refund. The TAB Advertisement does not exaggerate the chances of winning nor the size of the prize. Nor does it imply that the bettors skill can influence the outcome of the bet. More so, by offering a 'losing bet refund' it actually clearly acknowledges that some bets are unsuccessful. Conclusion The NZRB does not consider that the TAB Advertisement breaches Guideline 2 (c), Principle 2, or Principle 3 of the Code for Advertising Gaming and Gambling. The NZRB seeks that the ASA does not uphold this complaint. 5

6 The NZRB is grateful for the opportunity to provide comment regarding this complaint. Please advise the NZRB if the ASA requires any further information. 6