The UK Advertising Standards Authority (ASA) has announced a significant extension to the Code of Non-broadcast Advertising and Direct and Promotional Marketing (CAP Code).

For the first time, the rules will explicitly apply to non-paid-for online marketing communications such as social media posts targeting UK consumers, regardless of where the advertiser is based.

The update aims to close long-standing regulatory loopholes and ensure that all UK-licensed businesses adhere to the same advertising standards, even if they operate from outside the UK – with new rules specifically designed for UK gambling licences. 

Under the existing remit, offshore operators based in foreign jurisdictions such as Malta and Gibraltar were able to bypass CAP Code rules related to marketing communications.

Feedback to ASA recognised liabilities in the Code with regards to social media content promoting gambling services UK audiences, that was left outside of regulatory boundaries.

UK gambling licences were alerted that as of 1 September, exemption on non-paid content no longer apply. All operators holding UK licences must now ensure their unpaid marketing communications comply in full with the CAP Code.

“The amendment ensures all marketing communications targeted at UK consumers by licensed gambling operators are regulated and held to account by the same body (i.e. the ASA). 

“The amendment to the scope of the Code is therefore made in line with better regulation principles, particularly to support consistency in regulation.”

Rules will be applied to all UK-targeted content on social media platforms such as Instagram, TikTok, X and YouTube.

In its statement, the ASA said the rule extension brings social media marketing by licensed gambling operators into scope, regardless of where those operators are located. It stated that the change promotes stronger regulatory standards and consistency in rules applied to UK gambling advertising.

While the new rules are already in force, the Committee of Advertising Practice (CAP) has launched a three-month consultation to gather feedback from the industry. A formal review of the changes is expected in December, following the conclusion of the consultation period.

The ASA has clarified that this extension applies exclusively to the gambling sector. It does not, at this stage, apply to advertisers from other industries that do not have a UK-registered address.

Changes to the CAP Code come amid growing public and political pressure to strengthen controls on gambling advertising across digital platforms, particularly given the heightened exposure of young users to promotional content.

CAP Code changes related to gambling advertising have been ongoing since 2022 and as part of the Gambling Review. Most notably ASA and CAP applied changes to the appeal and aesthetics of gambling ads, in which promotions can no longer feature athletes, celebrities or social media influencers.

Campaign restrictions were further tightened by CAP demanding that all online adverts promoting gambling have a base age guidance of +21, to prevent age-restricted content from being served to children.

Dr Raffaello Rossi, a senior lecturer at the University of Bristol, welcomed the update, describing it as an important (albeit overdue) — step towards improved consumer protection.

Rossi, alongside other academics, had sent ‘several letters’ to the ASA to highlight the loophole in 2021, noting that gambling operators could avoid UK social media advertising regulations simply by relocating registered offices abroad.

“This is an important, though long overdue step for consumer protection and regulatory consistency in UK advertising.

Until now, social media advertising by some of the largest gambling operators — such as Paddy Power, Bet365 or Ladbrokes — often fell outside the remit of the ASA, because their businesses were registered abroad, even though they held a UK gambling licence.”

Dr Rossi thanked colleagues at the Bristol Hub for Gambling Harms Research, University of Bristol Business School, the APPG on Gambling Reform, Sanya Burgess, and Lord Foster of Bath for supporting the initiative.

UK gambling licences were informed that CAP will review the impact of the extended remit following a three-month period, deemed a timeframe that is necessary, given that the changes primarily affect a narrow category of non-paid social media content. Furthermore changes are not expected to be applied to a broader range of advertisers.