Stricter advertising guidelines endorsed by New York Gaming Commission.
Rewritten Article:
New York to Crack Down on Sports Betting with Strict Advertising Regulations
The New York State Gaming Commission (NYSGC) took a major step forward in combating potential gambling harm by unanimously approving new guidelines for sports betting operators. These rules, scheduled for a 60-day public comment period before going into effect, aim to protect vulnerable populations.
The primary focus of the new rules is to prevent operators from targeting underage bettors. The legal age to wager on sports in New York is 21. Operators will face restrictions when it comes to advertising, marketing, or branding that may attract minors.
One of the main rules stipulates that casino sports wagering licensees or sports pool vendors should refrain from any advertising, marketing, or branding efforts aimed at persons under the minimum legal wagering age. Furthermore, operators will not be allowed to advertise on any media channel where there's a foreseeable percentage of the audience being minors.
Congress and state legislators have renewed their scrutiny of sports betting advertising in recent weeks. New York State Senators Luis R. Sepúlveda and Leroy Comrie have presented a bill in January that requires the gaming commission to include the New York problem gambling hotline number (1-877-8-HOPENY) in all gambling advertisements, mirroring an Ohio sports betting law.
Democratic Rep. Paul Tonko of New York has introduced an even more extreme measure that resembles cigarette regulations and would ban all broadcast advertisements under the jurisdiction of the FCC.
Affiliate Deals also in the Firing Line
Legal New York sports betting, which launched in January 2022, generated nearly $16.2 billion in wagers within the first calendar year. This revenue resulted in gross gaming revenue for the operators of nearly $1.36 billion and a net $693.6 million in new taxes for the state.
At Monday's meeting, NYSGC Chair Brian O'Dwyer stated that although the introduction of legal online sports wagering has been largely positive for New York residents, the commission is aware of the potential for problem gambling.
The new rules further prohibit "false, deceptive, or misleading statements" in ads, ban the terms "free" or "free of risk," and require advertisers to clearly disclose all material terms and conditions of the promotion. Advertising on college campuses is also prohibited.
Interestingly, the rules contain a ban on advertising contracts with third-party affiliates where those affiliates are compensated based on the quantity of bets or customer sign-ups. Massachusetts, which is poised to launch mobile betting next month, has debated a similar ban.
Tightening the Screws on Affiliates
Amidst rapid growth in the sports betting industry, states like New York, Massachusetts, and Ohio are tightening their grip on affiliate marketing practices. Given the recent investigation published by The New York Times in late November, linking universities with sports betting companies, enforcement of stricter affiliate regulations seems inevitable.
In New York, efforts to restrict deposit amounts and limit manipulative advertising have gained traction, with proposed bills imposing caps on daily deposits and eliminating potentially misleading promotion language. Massachusetts has followed suit by introducing bills aiming to ban certain types of bets and restrict advertising, while Ohio has placed restrictions on ads near colleges and workplaces.
Affiliates and operators must brace themselves for increased regulatory scrutiny and adapt their strategies to comply with these evolving regulations, while continuing to engage bettors effectively.
- The new advertising regulations for sports betting operators in New York, aiming to protect vulnerable populations, prohibit advertising contracts with third-party affiliates where those affiliates are compensated based on the quantity of bets or customer sign-ups.
- In the sports-betting industry's rapid growth, states like New York, Massachusetts, and Ohio are tightening their grip on affiliate marketing practices, with proposed bills imposing caps on daily deposits and eliminating potentially misleading promotion language in New York.
- Given the new regulations, affiliates and operators must adapt their strategies to comply with evolving rules, while continuing to engage bettors effectively, as states such as New York implement stricter measures against risky wagers and deceptive advertisements in the sports-betting line.
