The ASA recently published five decisions relating to "social slot" games. Here we examine these decisions to outline the key lessons for operators to avoid ASA sanctions in the future.
What are “social slot” games?
Social slot games are casino-style games that use virtual currency instead of real currency. Their most important distinction with traditional casino-style games is that social slot games do not offer the user the opportunity to win real world prizes in return for a stake, meaning that social slots games are not regulated gambling products.
The Ads
Each ruling concerned paid-for advertisements which had been published on TikTok. Whilst the exact content of the ads varied to some extent, the features were fairly comparable and the concern in each case was that they created a misleading impression that the games were gambling products in which real-world money or tangible prizes could be won. The features of the ads are examined in more detail below.
Rulings
The ASA ruled that all five ads were misleading because they gave consumers the impression that they could win real world currency and prizes. The ASA reached this conclusion based on the following features:
- Use of prize terminology: The ads all used what the ASA described as "prize terminology", which included phrases such as "win massive prizes", "huge welcome bonus", "super-high odds" and "jackpot".
- Display of money and prizes: Many of the ads displayed virtual currency and, in some instances, real money. The ASA considered the display of currency implied that winning real-money prizes through the social slot game was possible. Some of the adverts also showed tangible prizes, depicting individuals in top of the range cars holding large sums of money, while referring to large bank accounts and encouraging consumers to play and win large sums of money. The ASA also ruled in some cases that the use of virtual currency or a cartoonish style of presentation would do little to dissuade consumers from this impression, particularly given that many traditional gambling operators use this style in their marketing materials.
- Casino settings: Many of the adverts were set in or outside a casino. The ASA believed this would lead consumers to draw a parallel between these social slot games and traditional gambling where real money and prizes can be won.
- Overt comparisons with traditional gambling: Some of these adverts made overt comparisons to traditional gambling through displayed text or voiceover, claiming for example that consumers could get the "real Vegas experience" by playing their games.
- Lack of effective disclaimers: The vast majority of the ads here did not include disclaimers informing consumers that real world prizes could not be won. Although one ad included a disclaimer, the text was superficial compared to the other text and imagery in the ad which would have attracted far more focus from consumers. Although many of the operators in question displayed the relevant disclaimers on the app store page at the point of download, or even in their terms and conditions, the ASA found that this was inadequate as this was after a consumer would have taken the transactional decision to click through the ad and download the game.
Importantly, the ASA also ruled that the fact that all these games were free to play was not an adequate defence in this instance. They noted that some of these games contained in-game purchases and that the commercial decision a consumer would be making in this situation was not whether or not to buy the game, but whether or not to click through the ad to download the game. They considered that consumers were not being given adequate information before making this decision and were therefore being misled. In addition, the ASA felt that the fact that the games were free to play was not enough to dispel the impression that consumers could win real money and prizes. As a result, the ASA found that all adverts were misleading to consumers and therefore breached Rule 3 of the CAP Code.
Lessons
Operators of social casinos should consider the following:
- Be careful in naming the game: The name of the games featured in these decisions tended to reference real world prizes. Names such as 'Cash Tornado', 'Jackpot Crush' and 'Billionaire Casino' were found to contribute to the misleading impression that consumers could win real world prizes and money.
- Display appropriate disclaimers in advertising: Operators should endeavour to make it clear in advertising that the game does not offer the opportunity to redeem real world money and prizes. These disclaimers must be sufficiently prominent within the advert itself (rather than any background terms and conditions or app store pages) and take into account the bright colours and sound effects that are likely to be present in the advert and attract the viewer's attention.
- Care should be taken when using references to traditional casino games: Depicting a casino in the ad is likely to be seen as creating an association with traditional gambling and winning real world prizes. Operators should also seek to avoid overt comparisons between their games and traditional gambling products in their promotional materials.
- Avoid references to traditional gambling mechanics: Operators should avoid using terms in advertising that describe traditional gambling mechanics, such as welcome bonuses and jackpots. Using this terminology increases the likelihood that consumers would associate the social slot game with traditional gambling products, and therefore increases the risk that the ASA would find the ad to be misleading.
- Avoid displaying currency and prizes in marketing: The display of coins, cash and tangible prizes in social slots advertising will increase the risk of the advert misleading consumers. The same applies to the display of virtual cash and coins. Also, ostentatious displays of people who appear to have won large sums of money should be avoided. Given that social slots games are not gambling products and do not offer prizes of real-world value, advertisers should not present prize themes which suggest otherwise.
- Respond promptly to the ASA: Most of the operators in these decisions responded to the ASA's concerns. These operators were instructed to remove the adverts immediately and to ensure that they did not use similar marketing in the future. One operator did not respond at all and was referred to CAP's compliance team, who may take further action in the future. If you are contacted by the ASA, it's important that you respond promptly, or you risk a more serious penalty.
The full rulings can be found below:
Dataverse Co. Limited - ASA | CAP