New Google Ads Rules May Reshape Online Casino Advertising

Google is set to roll out updates to its Gambling and Games advertising policy on April 14, introducing new definitions and stricter rules for gambling-related promotions. Operators will still be able to advertise if they hold Google’s gambling certification, but the policy changes could reshape the landscape for certain sectors of the industry.

The updated guidelines will impose tighter restrictions on gambling-related advertising based on location. Some regions, such as China, will no longer allow any gambling ads. However, one of the most closely watched aspects of the update is Google’s new approach to social casino and skill games, which remains largely undefined.

The policy specifically addresses Mahjong advertising in the Pacific Rim, stating that promotions for gambling or paid Mahjong sites will no longer be allowed. Google has also clarified what it considers gambling, defining it as “staking something of value on the outcome of events or processes determined by an element of chance with the opportunity to win something of value.”

For social casinos, advertisers must ensure their ads target only those of legal age and must not market to minors. A valid local license is required, and landing pages must disclose in-app purchases if they are necessary to play. Additionally, advertisers cannot use logos associated with real-money gambling, nor can they imply an affiliation with real-money gaming.

Real-money gambling links are strictly prohibited on social casino sites, and any advertiser that loses its gambling license must immediately notify Google. The company has signaled that violations will be treated as serious offenses, potentially resulting in the loss of advertising certification.

The update could have significant implications for the US sweepstakes casino industry. One key challenge is the requirement for advertisers to hold a license in the jurisdiction where they are running ads. This may create difficulties for sweepstakes casinos, which operate under different legal frameworks than traditional online casinos. Google does not currently have a specific category for these operators, meaning they may need to classify themselves under broader online casino definitions.

In the United States, Google allows online casino advertising only in states where real-money gaming is legal. This raises questions about whether sweepstakes casinos will be permitted to use Google ads to advertise in these states under their existing legal structures or whether they will be restricted due to the lack of traditional gambling licenses.

Another uncertainty is whether Google will turn away the substantial revenue generated by sweepstakes casino advertising. 

In states where online casinos are not legal, these operators have invested heavily in advertising, creating a significant financial impact. The outcome of the policy changes could determine whether this revenue stream continues.

Yet, under the current definitions and limited options given online casinos on where they can advertise, it is hard to see where the sweeps casinos will have a way to continue to use Google to reach tens of millions of customers.

Recent industry movements suggest that sweeps operators are preparing for potential disruptions. Two major sweepstakes operators have already withdrawn from legal iGaming states, while another has raised its minimum gaming age to 21. But this could also be due to states attempting to curb sweepstakes casinos.

These adjustments are expected to be finalized just before the April 14 Google policy rollout, fueling speculation that operators are working with Google to navigate the new rules.

For now, Google and sweepstakes operators have remained silent on the matter. As the rollout date approaches, the industry is watching closely to see whether these changes will bring a major shift or have minimal impact on the online gambling advertising space.