Published: 24.04.2020, 19:43
3 min read
Armenia has banned all gambling advertising for the duration of the COVID-19 pandemic. Vahe Danielyan, the Armenian Deputy Justice Minister, announced the restrictions as a part of the country’s initiative to combat the coronavirus.
Alongside sweepstakes and strip club advertising, gambling ads will no longer be legal. Over the past several years, Armenia has already introduced a lot of regulations regarding the advertising of gambling services. For instance, in 2018, the authorities mandated that advertisements for gambling services could only be broadcast between 10 p.m. and 6 a.m.
Broadcasters Suffer from the Prohibition of Gambling Ads in Armenia
The advertising industry in Armenia is currently experiencing a complicated situation. When the lawmakers introduced the ban on gambling advertising, it was a devastating piece of news for people involved in the production of commercials. The director of one of the Armenian radio stations, Shushanik Arevshatyan, spoke about its negative consequences.
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The head of the Van radio station expressed her feelings about the ban in a video she posted on her Facebook page.
She stated that, despite the good intentions of the young deputies who are trying to solve critical socio-economic issues, their actions have an extremely negative impact on broadcasters. The situation would not be so challenging if all the initiatives were not limited to banning certain types of advertising.
The head of the radio station also said that the industry experienced its first major blow when the officials issued a ban on the advertising of betting companies. However, she noted that the measure did not contribute to a reduction in gambling. Instead, funds from the advertising services began to flow into offshore companies. Apart from that restrictive measure introduced in the summer of 2019, radio stations also have to deal with the law that requires broadcasting gambling ads only at night.
However, the restriction of gambling advertising was only the first step and was followed by an initiative to limit the advertising of financial loans. Even though deputies have good intentions, it is not particularly efficient and makes the wrong party suffer significant losses. The problem is in the work of bank operators, and not the advertising. In modern reality, it turns out that even if there is no advertising, credit organizations would continue to thrive.
Alternatives to the Gambling Restriction
Arevshatyan believes that such actions by the authorities may ultimately lead to broadcasters being furloughed, many employees losing their jobs, and the state budget will not be receiving a big share of tax payments.
The director of the radio station referred to the experience of the Russian Federation and noted that the advertising of bookmakers is not prohibited in Russia. Advertisements annually bring in 15 million rubles to the compensation fund. She stated that it is necessary not to ban gambling advertisements, but to consider possible alternatives. In particular, deputies should take a closer look at bookmakers. According to Arevshatyan, it would be more expedient to oblige the gambling companies to pay a fee that would be used for the development of cultural and social spheres.
