INSIGHT
US REGULATORY FOCUS ADVERTISING
Several states have already imposed stricter regulations on advertising targeted at younger audiences and it has also been a cause of concern for some members of Congress. In February 2023 ahead of the Super Bowl Congressman Paul D. Tonko (D-NY) introduced the Betting on our Future Act.
Modelled after the Federal Cigarette Labelling and Advertising Act it sought to ban all online and electronic advertising of sports gambling. Although the bill failed to gather much traction the Congressman has followed it up with a much wider bill this year called the Supporting Affordability and Fairness with Every Bet Act (SAFE Bet Act). It would impose strict limitations on how online sports betting companies market to and interact with their customers.
Tonko, who was joined by members of Northeastern University's Public Health Advocacy Institute, when he announced the bill said, "We are dealing with a massive and growing public health crisis involving a known, addictive product.”
and Sen. Virgil Peck (R), sought “prohibitions on advertisements published through internet websites, other online mediums or electronic device applications” in order to ensure that they do not target children, those who are ineligible to place bets, problem gamblers and vulnerable individuals. However, the bill died in the committee stage in April.
Connecticut legalised sports betting in May 2021 and sports betting officially went live in the state later that same year. It allows for both online sports betting and it is also available at a small number of retail locations as well. Bill 5284, which revises various rules when it comes to marketing guidelines for sports betting, was introduced and approved by the Public Safety and Security Committee earlier this year and is now awaiting further action in the House.
If approved, it would prohibit the use of celebrities in sports betting advertisements, prohibit sports betting advertisements targeting audiences where the majority are presumed to be under 21 and would ban
In March 2023 the Massachusetts Gaming Commission (MGC) voted to prohibit affiliate marketers from entering into revenue sharing agreements with sports betting operators. The state does allow for CPA agreements. It also made the operator responsible for the content and conduct of any and all sports betting advertising, marketing, or branding done on its behalf or to its benefit when conducted by the an affiliated entity.
Specifically, the SAFE Bet Act would require states offering sports betting to ensure operators comply with minimum federal standards in three categories: advertising, affordability, and artificial intelligence. When it comes to advertising no sportsbook advertising during live sporting events, and no programming designed to induce gambling with “bonus”, “no sweat,” “bonus bets,” or odds boosts would be allowed. It would also prohibit the use of AI to track player’s gambling habits and offer individualised promotions. Tonko said that he is currently fine tuning the bill and aims to introduce it some time this year.
A number of other lawmakers are also working to limit gambling advertising especially when it comes to problem gamblers. Ahead of this year’s March Madness college basketball tournament U.S. Senator Richard Blumenthal (D-Connecticut) wrote to eight major sports betting companies to demand they stop leveraging data to target problem gamblers with promotions and ads.
Meanwhile lawmakers in some states are trying to impose further restrictions with some bills garnering more support than others. In Kansas, where sports betting went live in September 2022, SB 432, a bipartisan bill introduced by Sen. Cindy Holscher (D)
advertisements and marketing through media or social media that primarily appeal to individuals under the legal gambling age.
It would also prohibit revenue-sharing marketing affiliate deals but permit cost-per- acquisition (“CPA”) marketing affiliate deals. Tis means that sports betting operators would be able to compensate a third party marketer for sending traffic to their websites. However, that compensation can’t be based on the number of people who sign up for services and actually place bets.
Massachusetts put similar rules in place when it comes to revenue-share affiliate agreements. In March 2023 the Massachusetts Gaming Commission (MGC) voted to prohibit affiliate marketers from entering into revenue sharing agreements with sports betting operators. Te state does allow for CPA agreements. It also made the operator responsible for the content and conduct of any and all sports betting advertising, marketing, or branding done on its behalf or to its benefit when conducted by the an affiliated entity.
Rules on advertising are already strict in the state. Amongst rules that are already in place no advertisement can “contain images, symbols, celebrity or entertainer
WIRE / PULSE / INSIGHT / REPORTS P117
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