At sports events, on influencer posts, at cultural events and even on the streets. The industry gets around the law in creative ways.
Instead of advertising a gambling hall directly, advertise a sports bar or even a clothing store with a gambling brand in its name. In addition a series of popular influencers in Latvia are happy to have become the faces of gambling advertising.
How did it happen that ads are banned, but visible everywhere? And what, i anything, can be done to solve the problem? These questions were asked by Open Files in collaboration with the Baltic Investigative Journalism Center "Re:Baltica". "Re:Baltica" tried to speak to five influencers who promote gambling companies.
Jānis Krīvēns, aka Krivenchy, has 40,000 followers on Instagram. Some people know him as a rapper in the group Singapūras satīns (Singapore Satin), and he is a TV regular. He has many roles, one of which is "something like an official mascot or symbol" for the OlyBet sports betting brand.
Initially he was prepared to do a face-to-face interview, but the next day, he wrote that he "had a little sleep on the subject" and wanted to respond in writing, because "the subject is sensitive and, given its seriousness, I can very easily get into trouble with what I say."
Krīvēns' Instagram account is colorful. In one post he advertises food delivery, in another he records moments from a concert, in another he shakes hands with NATO Secretary General Jens Stoltenberg. But in the midst of all this there is a variety of content related to gambling. For example, the video where he stands in the rain and says that this is "a beautiful day to go and drink coffee in the most beautiful 'OlyBet' sports bar in all of Pārdaugava". The list of benefits goes on - delicious food and drinks, sports on the big screens, spending good time with friends. The minute-long video ends with a shot where Krīvēns has slot machines in the background: "And, of course, there are also the favorite activities of Olympic Casino Latvija here."
"Classic advertising, classic advertising," says Signe Birne, head of the Lotteries and Gambling Supervision Inspectorate (IAUI), after watching this video. In her opinion it is not legal.
Krīvēns has other thoughts. He insists he knows the law and is not doing anything beyond its limits. "There would be grounds for moral and ethical discussions if I cooperated with industries that operate outside the boundaries of the law. In this case, I do not see anything that contradicts my views and beliefs," he says.
The second - and also the last of the five influencers who were prepared to answer for themselves – is the rapper Prusax. His real name is Rihards Jānis Ķullītis. He has 31,000 followers and a partnership with OlyBet to flag up events.
'No-brainer' endorsement
"I agreed to the cooperation because I myself like the casino, I have been using the services offered by OlyBet for years, so it was a no-brainer for me. A brand that I like - stylish events, cooperation. Of course, also a salary," he admitted, though he refused to disclose how much he earns for his promotional work.
When asked with whom exactly the cooperation was signed, Prusax wrote that he did not want to answer.
But gambling companies do much more than take bets on sports matches. They also invest in the sports themselves via sponsorphip. Journalist Raivis Šveicars had investigated the links for the "Latvijas Avize" newspaper and says that betting companies invest up to three million euros in sports every year.
"Basketball team, ice hockey team... You can take every major sport we have, go to their websites and see bookmakers in the ranks of the supporters," Šveicars says. It is said to be a common practice all over the world. In Latvia, the boom even came a little later. It's true, elsewhere they are already looking for ways to limit it: "They already understand that it's a bit too much, they need to slow down."
Since direct advertising of gambling is not allowed, the sport finds various detours. Industry representatives usually say they work with sports bars, not bookmakers. And legally speaking, they can be considered two different entities even if there are obvious links between them.
In reality, it looks like this: on the athlete's kit, for example, the "OlyBet" logo and the inscription "sports bar" are clearly visible. And the word 'bet' is English, not Latvian.
This is exactly how it looked when the Latvian national team fought for bronze at the world ice hockey championship in Tampere. This drew the attention of the police, who had received a request to check whether Finnish laws had not been violated, "Re:Baltica" found out. In Finland, only one state-owned company is allowed to advertise betting, which directs profits to science, art and other purposes. Law enforcement officials consulted with other authorities, but in the end decided not to open an official investigation.
The general secretary of the Latvian Hockey Federation, Roberts Plūjejs, says that the lawyers of "OlyBet" handled this issue with the Finnish authorities, but he publicly explained to the media at the time that the sports bar is not a bookmaker.
He admitted to "Re:Baltica" that this is a way to circumvent the ban on advertising: "These are two different trademarks. Sports bar advertisements are not prohibited in Latvia. Let's call it a gray zone in the very outdated legislation regarding this industry. It is a way that cooperation is possible."
When asked why sports in Latvia are so closely linked to the gambling industry, he says: "This is the trend all over the world, the bookmaker business is focused on sports and by supporting sports they fulfill a social function, diverting part of this profit to sports."
More recently, the Latvian team kit has been emblazoned with the name of Optibet, another bookmaker.
The Latvian basketball team faced similar problems before the World Cup final tournament in Indonesia. Their uniforms were decorated with the logo of the sponsor "OlyBet" sports bar. Gambling is officially prohibited in Indonesia. Another workaround was found: team kits bore the word "OlyB". The last two letters were removed from the sponsor logo so as not to refer to gambling – at least to other countries not familiar with the brand.
In a telephone conversation with "Re:Baltica", general secretary of the Latvian Basketball Association (LBS) Kaspars Cipruss emphasized that the national team does not advertise gambling. The sponsor is the "OlyBet" sports bar network, and legally they are two different things.
Asked if he sees the similarity of what is seen on the team kit with the "OlyBet" casino logo, Cipruss said: "I only see what is written in my contract. (..) We are promoting the "OlyBet" sports bar."
"At the moment, we do only what is allowed within the framework of Latvian law. My moral ethics work according to one principle, I really like one term in English – 'beggars cannot be choosers'," Cipruss said. "If the government or "Re:Baltica" or someone else suddenly comes and says, hey, we'll give you the relevant amount, if you don't cooperate with them, well, we'll probably evaluate it. But unfortunately, we don't have that option as yet."
Sponsorship, but not advertising?
This summer, beach volleyball player and Olympic medallist Aleksandrs Samoilovs became the head of the sports department of the Ministry of Education and Science (IZM). At the end of July, the newly minted civil servant could be found not only in the corridors of the ministry, but also in advertisements for the online casino "LV BET".
After a "Re:Baltica" journalist pointed this out on social media, Samoilovs wrote on "Facebook" that as he is also continuing his career as a professional athlete, cooperation with several sponsors is still valid. The specific ad was nominally promoting a sports news blog – though again the English word 'bet' featured – but at Samoilovs' request it was withdrawn.
When called, Samoilovs reiterated that everything was legal, because he is promoting a sports news blog. Asked if he sees that the logo is almost identical to the associated gambling company, he said that he did not. At the end of July, the contract was terminated. Samoilovs himself is part of the working group of the Ministry of Finance, which works on the regulation of gambling.
Similarly, former basketball player Valdis Valters, a freelance adviser to the Minister of Health on child and youth health, is regularly seen in conversations about sports on "YouTube" with an advertisement of the online casino "11.lv" in the background. He explained to "Re:Baltica" that he created a sports channel called "11LV TV" a long time ago and "we have nothing to do with gambling advertisements".
When asked if he sees any problem combining this with work in the minister's office, Valters answered: "It's not a problem as you perceive it. I believe that I deal with sports science, I have a lot of interviews there about sports science, about children, young people. It's a completely different subject matter. That there's something in the back, that's not something you should worry about."
This spring, the gambling brand "Fenikss" announced itself as a player in the clothing industry. On the homepage, the store "fenikss.lv" started selling shirts, hooded jackets, hats and other accessories with various inscriptions. "The idea of an online store seems to the management of the company to be a logical step in business development," the company said. They hope that "by the end of the year, the new online store will have won leading positions in its market segment and already next year the operation will be expanded outside the borders of Latvia".
Soon, the store's advertisement appeared on Rīga billboards. The font resembles its gambling hall chain signs, admittedly with the addition of the word "shop" in smaller letters.
The Gambling Inspectorate says that this is a way for a merchant to circumvent the ban on advertising: "Well, without a doubt, how else, they are looking for all kinds of options. I will not be surprised if mineral water with vitamins and a bookmaker or the name of a gambling brand suddenly appear," says the head of the inspection Birne. This case would most likely end up in court in case of disputes.
"No one has forbidden a gambling merchant to sell T-shirts on the Internet or in a store. On the other hand, the content of the printed shirts balances on the border of taste and ethical norms."
Similar moves were made by some tobacco companies in previous decades, who developed clothing brands as a way of keeping their brand names in the marketplace as advertising restrictions on cigarettes got tighter.
Betting on the National Theater
The owner of "Fenikss", Jānis Zuzāns, is one of the best-known patrons of the arts in Latvia. The name of his partially-owned company "Alfor" can often be seen in the ranks of supporters of various cultural events. For example, it has helped create Latvian pavilions at the Venice Biennale and supports a prestigious annual arts award.
But there is a nuance. After Zuzāns opened a bar in the city center, named "Lounge Fenikss", it appeared among the supporters of cultural events. For example, for the jazz festival "Rīgas ritmi". However, clicking on the supporter's logo on its home page opens not the bar's home page, but the casino's.
Lounge Fenikss is also one of the sponsors of the Latvian National Theatre. The play "Pīters Pens. Sindroms" (Peter Pan. Syndrome) was created with its support.
Several visitors to the premiere told "Re:Baltica" that coupons for visiting the bar were distributed before the performance.
The theater confirms that this is included in the advertising contract signed with "Alfor", but it has nothing to do with gambling. Talking up its own "high moral standards", the National Theater concluded that the bar and the gambling company were two separate areas of interest.
However, the National Theater did seem extremely sensitive about the questions posed by journalists on the subject, saying in a written response: "According to the law (..) the journalist is obliged to provide true information. Taking into account the above, we ask (..) not to provide the public with unverified or inconsistent information about the theater, thus deliberately damaging not only the theater, but also the building in which the theater carries out its commercial activities, reputation and causing losses to the theater, for which the theater can take legal action," said the e-mail signed by public relations specialist Baiba Tilhena.
So far this has been the only cooperation agreement between "Alfor" and the theater. The website shows that it has now been replaced by the cosmetics brand "Dzintars" in the list of supporters.
Of the gambling companies contacted by "Re:Baltica", only "Alfor" responded. It said its clothing store was created as a "fun project", and is a separate brand. The same with the lounge bar. "The "Fenikss" brand is very well known in Latvia, and therefore it was chosen for effective brand management," explained "Alfor" representative Miks Miķelsons. "Lounge Fenikss" did not prove as popular as hoped, so it has been closed down.
Changing, but not changing
It is worth reiterating that gambling itself is not illegal in Latvia, provided it takes place in properly licensed premises and relevant taxes are paid. But advertising gambling has been outlawed since 2006 – before the modern era of influencers and social media. The Consumer Rights Protection Center (PTAC) has always been responsible for control. So why doesn't it do anything with what look very much like ads spinning all over the place?
Put simply, there is no capacity and it is not considered a priority.
"Re:Baltica" got acquainted with PTAC's correspondence with the Lotteries and Gambling Supervision Inspectorate. For example, in August of this year, the inspectors sent PTAC a message that they noticed that gambling was being advertised on a "Telegram" channel. PTAC responded with a page and a half long explanation, the gist of which is contained in a couple of closing sentences. "PTAC explains that monitoring of gambling is not set as a priority in PTAC's 2024 action plan and PTAC's monitoring activities are focused on monitoring many other areas important to consumers. Therefore, PTAC takes note of the information provided in the submission."
And that's all. Even if someone had broken the law, they probably had little to worry about because gambling is not on the priority list.
"Often they answer that it is not their priority, change the law and take responsibility yourself," says Birne, head of the Lotteries and Gambling Supervision Inspectorate.
She says that in her opinion, an invitation to dine at a gambling hall is a form of gambling advertising, particularly if materials where the logos of these companies or gaming machines are visible, too. Each case should be evaluated individually, but most of the reviewed content has signs of gambling advertisements.
The head of PTAC declined an interview but did confirm that in the last 10 years no one has been punished in Latvia for unauthorized gambling advertising.
The Saeima is currently examining amendments to the advertising law prepared by the Ministry of Finance, which stipulates that the control of gambling advertisements will be taken over by the Lotteries and Gambling Supervision Inspectorate. "And that will be a priority for us," says Birne. The industry has already been warned that it can expect to face a more rigorous regime in future – and that includes social media influencers.
However, it will likely not mean a complete break between Latvian sports and gambling companies. "If we start applying a total ban on advertising now, following the inspection's interpretation, it would also mean that the name of the gambling sponsor cannot appear on a team shirt. It would mean financial disaster for sports," explained Finance Ministry Deputy State Secretary Olga Bogdanova. Therefore, the new amendments include a disclaimer that recognized sports federations will be able to place bookmaker names both at the competition venues of adult athletes, as well as in competition names. Basically, the law will consolidate what is already happening now as a temporary compromise.
It is planned to commission foreign experts to study how and whether gambling advertisements affect people – though there is already a wealth of research material available internationally. The study in Latvia will take two years, and only then will solutions be applied, says Bogdanova.
The inspectors are not happy about the temporary measures and predicts that sharp discussions are expected in the Saeima. "Why is advertising prohibited at all? Because excessive advertising contributes to the risk of gambling addiction. So what makes those recognized sports different if they are allowed to be on sportsmen's jerseys, on the sidelines? (..) There is no logic in this," emphasizes Birne.