Flutter Warns It Will Suspend Partners for Ads With Coronavirus Mentions

  • Betting giant sent out email announcing its zero-tolerance policy
  • It said affiliates cannot use coronavirus pandemic in an opportunistic manner
  • Flutter Entertainment's profit warning shows EBITDA drop of £90m-£110m
  • Sports betting sector feeling effects of widespread sporting event cancellations
main in suit holding up zero tolerance card
All Flutter Entertainment affiliates have been warned that referencing the coronavirus in promotional content will lead to immediate suspension. [Image: Shutterstock.com]

A zero-tolerance approach

Betting giant Flutter Entertainment is taking no chances. It has warned its affiliates that they will be immediately suspended if they mention the coronavirus in any promotional content.

they cannot use “current events in an opportunistic manner”

The message was communicated in an email sent to all partners, titled ‘Coronavirus and Marketing’. Flutter emphasized that there will be a zero-tolerance policy in place. It also reminded all affiliates and other third-party advertising partners that they cannot use “current events in an opportunistic manner.”

The owner of Paddy Power, FanDuel, and Betfair is well-known for its edgy marketing practices in the past. However, it appears that any reference to the coronavirus to increase attention to online gambling offerings is a step too far. 

A struggling industry

Since the rapid spread of the COVID-19 virus throughout Europe and North America, sports betting companies have been struggling. The industry as a whole is facing significant losses as countless major sporting events have been canceled or postponed. 

Flutter Entertainment issued its own profit warning this week, underlining how hard its 2020 financial performance will be hit. As of now, it believes that its full-year EBITDA will drop by between £90m ($106m) and £110m ($129m).

Other companies have issued similar projections, with the likes of Playtech and William Hill suspending dividend payments to shareholders. Companies with a lot of exposure to sports betting and retail casinos have seen their share prices decimated in recent days. This led many in the sector to call on respective governments to provide financial aid to the gambling sector.

Light at the end of the tunnel?

Almost 250,000 cases of the coronavirus have been confirmed across the world, with more than 10,000 deaths reported to date. The situation in Europe and North America is continuing to worsen. However, there are some glimpses of hope as cases in certain areas of China, which initially witnessed the virus breakout, have been shrinking. 

Sports betting companies hope that postponed sporting events will go ahead at some stage in the future.

Leave a Reply

Your email address will not be published. Required fields are marked *