Memes shared on social media by gambling firms are being investigated by the UK’s advertising watchdog amid concerns the posts could pose a risk to children, i can reveal.

The Advertising Standards Agency (ASA) is investigating some of the memes shared online by gambling firms following complaints from peers in the House of Lords, who accused the body of failing to crack down on “clear rule breaches”.

Known as “content marketing”, gambling firms are increasingly using social media posts containing memes – usually an amusing image, video or comment – to build brand awareness, rather than traditional adverts for specific products, such as an offer of free credit if a bet is placed.

But recent research referenced in the previous Conservative Government’s plans to reform the gambling industry, found this type of marketing is four times more appealing to under 18s than to adults.

Academics claim the adverts encourage young people to follow gambling accounts, where they are then exposed to more direct advertising and explicit promotions encouraging them to gamble. Gambling companies have denied their adverts are designed to appeal to children and teenagers.

The action from the ASA emerged in an letter, seen by i, which was responding to a complaint from Lord Foster of Bath, a Lib Dem peer who chairs a cross-party group pushing for gambling reforms.

Lord Foster, the chair of Peers for Gambling Reform, wrote to the ASA to “express strong concern over repeated inaction” and the risks such adverts posed to children and teenagers, claiming there had been “clear breaches” of the rules.

When approached by i, the ASA said that it has launched investigations into several complaints.

Although some posts containing memes are deemed to be “editorial content”, the watchdog has a duty to monitor any that are classed as adverts.

The Lib Dem peer told i: “It seems the agency has lost control of how gambling companies advertise on social media. The ASA urgently need to improve or risk becoming a toothless agency.”

i understands that ministers are reviewing gambling policy, including content marketing, ahead of a future update on how the Labour Government will approach the industry. Tackling gambling-related harms and strengthening protections for those at risk featured in the party’s manifesto.

Lord Foster’s July letter to the ASA highlighted 11 reports that had been made to the ASA since 2019 highlighting a range of complaints, including from the Gambling Related Harm All Party Parliamentary Group and academics from the University of Bristol. The adverts cited in these complaints were from a range of different gambling companies.

The agency’s response letter, seen by i, stated there are now “several investigations under way that are assessing potential breaches of our rules relating to UK-based content marketing ads”.

The watchdog told i it was unable at this stage to provide details on those investigations beyond confirming it is “taking up cases from complaints, including two cases from the University of Bristol, and has instigated a pro-active ASA challenge based on our own intelligence gathering.”

Raffaello Rossi, Lecturer in Marketing at the University of Bristol, conducted several studies with over 700 participants aged 11 to 78 and found content marketing strongly appeals to those under 18.

He told i: “The concern is that these ads hide the addictive nature of gambling behind humour. Once [under 18s] begin following these brands on social media because of the entertaining content, they are also exposed to financial incentives, such as sign-up bonuses and promotions.”

Mr Rossi accused the ASA of being slow to take the matter seriously. He said: “I believe it is too little, too late. Since 2019, hundreds of thousands of content marketing ads have been posted by gambling brands, and been seen by kids. Investigating a few individual ads is unlikely to make a meaningful difference.”

The advertising rules around this newer form of marketing are complicated, with even some figures who work in the gambling industry unclear on the finer details.

What action may be taken and by which regulator depends on whether the brand paid for the post to be promoted on social media, something known as a “paid-for post” which often has more reach. Many posts are non-paid.

ASA UK regulates both paid for and non-paid advertising directed to UK audiences. However, it does not regulate non-paid advertising if it comes from a company not based in the UK – even if the adverts are aimed at UK audiences.

For example, ASA UK is only able to regulate some adverts posted by gambling firm Paddy Power, which is based in Ireland where its marketing decisions are made. It means that in some instances, ASA UK would need to refer responsibility to regulate Paddy Power to ASA Ireland.

This jurisdiction issue was among those raised by Lord Foster in his letter of complaint to ASA UK. He argued that Paddy Power should fall entirely under the UK regulator as they advertise using UK currency as opposed to the Euro, and have an office in the UK.

There is no suggestion that Paddy Power is one of the firms under investigation by the ASA.

Lord Foster told i: “The ASA urgently need to improve or risk becoming a toothless agency.

“There is enough robust research showing that these toxic adverts have the potential to be especially attractive to children and teenagers at an age when they are impressionable and the risk of harm is clear. Peers for Gambling Reform group is not satisfied with the ASA’s actions so far.”

A spokesperson from the ASA said: “We’ve long been clear that content marketing, where its content is connected to the sale or transfer of goods and services directed at a UK audience, is subject to the Advertising Code.”

He added: “Central to our dedicated rules for and our regulation of gambling ads is the protection of children and young people from harm or exploitation.”

A spokesperson for Flutter UKI, who own Paddy Power, said: “We take our obligations under advertising regulations incredibly seriously.

“For several years we have been at the forefront of driving higher industry standards on social media – such as working with major platforms on age-gating controls – and continue to do so.

“We do not and never intend to market to children.”

Lord Foster’s letter, on behalf of Peers for Gambling Reform, was shared with Number 10, the Department for Culture, Media and Sport, as well as the Gambling Commission.

A spokesperson for the Gambling Commission said: “We work very closely with the ASA and if a gambling firm was found to be in serious or repeated breach of the rules we can take tough action, including fining.”