Over two-thirds of voters in the state of New Jersey favor restrictions on advertisements for sports betting.
In the bustling landscape of New Jersey, sports betting has vesseled a sizable revenue stream since the federal ban's dissolution in 2018. Goldmines like taxes from online sports betting, amounting to a colossal $75m in 2024, have paved the way for economic growth.
However, the floodgates of sports betting advertisements that patrons are experiencing has emerged as a contentious issue. A poll from Fairleigh Dickinson University (FDU) revealed that an impressive 76% of the state's voters are eager for limitations on the number of ads.
The digital battlefield is saturated with marketing messages flooding social media platforms, sports viewing screens, and even billboards as you cruise down the highway. Operators go to great lengths to secure visibility, with DraftKings bolstering its sales and marketing budget to a staggering $1.26bn in 2024.
Capping these marketing barrages could prove to be a shrewd move for lawmakers to win public favor, suggests FDU Poll Executive Director Dan Cassino, dubbing it a "slam dunk issue." Even frequent gambling enthusiasts seem to be worn out by the deluge of ads, Cassino adds.
The surging wave of sports betting advertisements in the state is part of a larger initiative to tackle concerns surrounding problem gambling. Here's a glance at the current regulations and proposed changes to address the matter:
Current Regulations
- Age Safeguards and Transparency: The Garden State's law prohibits gambling operators from dishonest advertising practices and targeting minors[4].
- Tight Gaming Laws: New Jersey abides by stringent gaming regulations, including licensing requisites and responsible gaming mandates[2][4].
Proposals for Advertisement Restrictions
- Timing and Location Controls: Certain proposals suggest regulating the times and venues for sportsbooks to advertise, particularly during family-oriented programming[2].
- Warning Mandates: A bill proposes enhancing the warnings on sports wagering advertisements to flag the potential for addiction[1]. Moreover, the New Jersey Responsible Gaming Task Force recommends that all gambling ads carry messaging about the likely addictive nature of the products[5].
These steps aim to minimize the risks associated with the spread of sports betting advertisements in the state. The occurrence of problem gambling has spiked dramatically since mobile betting went mainstream in New Jersey[2].
- Federal lawmakers might consider intervening to cap the prevalence of sports-betting advertisements following the Fairleigh Dickinson University poll, which found that a majority of New Jersey voters support such limitations.
- Operators in New Jersey's sports-betting market, such as DraftKings, have significantly increased their sales and marketing budgets to boost their visibility, but this could be counterproductive if restrictions are enacted on advertising.
- In response to concerns over problem gambling associated with the surge in sports-betting advertisements and the subsequent potential for addiction, proposals have been made for advertisement restrictions, including regulating the times and venues for sportsbooks to advertise and enhancing warning mandates on advertisements.
