Massachusetts Gaming Commission Examines Casino Advertising Practices

The Massachusetts Gaming Commission (MGC) is focusing on addressing problem gambling in anticipation of the potential introduction of sports betting in Massachusetts. At present, their attention is primarily directed towards regulating casino advertising.

Casino advertising criticized as irresponsible

In all honesty, gambling advertisements are incredibly forceful. With their substantial advertising budgets, gambling industry leaders have the ability to relentlessly inundate people with alluring offers and sign-up incentives.

“According to Colin A. Young, a reporter for State House News Service (SHNS), the advertisements are unavoidable. Some promise ‘risk-free’ gambling, while others promote ‘free’ or ‘bonus’ play with hundreds or even thousands of dollars for new customers.”

If left unregulated, Young warned that the use of star-studded commercials and digital ads in this marketing approach can lead to significant problems for young individuals and those vulnerable to engaging in irresponsible gambling.

Study shows publicity fuels problem gambling

The University of Massachusetts School of Public Health conducted a comprehensive study spanning six years. The primary objective of this research was to track the prevalence of problem gambling in the state and investigate potential factors that might contribute to it, such as the introduction of casinos.

Both the MGM Springfield and Encore Boston Harbor casinos were strategically opened within the operational dates of the study, with MGM Springfield opening in August 2018 and Encore Boston Harbor opening in June 2019.

The study revealed a notable surge in problem gambling and relapse among individuals with gambling addictions in the state, even prior to the opening of MGM Springfield.

Gambling licenses already have regulations for problem gambling

There are already limitations imposed on the advertising of casinos and gambling establishments in Massachusetts.

The presence of these restrictions hinders their ability to target individuals who are below 21 years old or those who have voluntarily included their names in the exclusion list with the commission.

Moreover, the inclusion of details regarding seeking treatment for problem gambling is imperative in promotions. The Responsible Gambling Framework established by the MGC emphasizes the casinos’ responsibility to advertise in a responsible manner.

According to the framework, casinos are encouraged to create and execute strategies that guarantee responsible delivery of advertising and promotions. This includes promoting the benefits of gambling responsibly and advertising resources for addressing problem gambling.

Targeted mobile marketing: more casino advertising regulation

Existing regulations govern casino advertising, but the rise of mobile advertising and the imminent introduction of sports betting have sparked calls for additional regulation.

The research team at MGC has put together a comprehensive white paper that provides a detailed account of their findings.

• The current regulations on gambling advertising in Massachusetts, as well as in other states
• A study investigating the correlation between advertising and problem gambling.
• The MGC has the potential to implement various strategies and regulations.

Concerns have been raised by Mark Vander Linden, MGC’s Director of Research and Responsible Gaming, regarding the use of targeted marketing through mobile advertisements.

According to Vander Linden, the concept of advertising to promote a product or service is not a novel idea. However, in recent times, advertising methods have significantly expanded beyond traditional mediums like TV commercials, billboards, and newspaper ads. Nowadays, advertising heavily relies on gathering personalized data from social media and other sources to create tailored advertisements that are delivered through smartphones and various other screens.

Furthermore, Vander Linden asserts that the commission should take further action in regulating gambling advertisements in casinos.

“Although it may seem like the free market is the main concern here,” he explains, “we should remember that gambling involves risks. Thus, the commissioners should contemplate implementing extra measures to restrict or regulate Massachusetts gambling advertisements by our licensees and their parent companies in order to mitigate potential harm.”

MGC research team suggests solutions and additional regulations

The research team of MGC presented a white paper containing numerous proposed regulations. Some of the recommendations put forth in the paper are as follows:

• This policy requires that a portion of every licensee’s advertising budget is allocated towards promoting responsible gambling messages.
• Create a system for reporting any breaches of gambling advertising regulations.
• Casino officials are required to undergo compulsory marketing training.

The MGC commissioners found another recommendation particularly intriguing, which suggested aligning gambling advertisements with those of the Cannabis Control Commission.

Advertising is restricted to specific mediums according to regulations. Ads can only be displayed in locations where it is estimated that at least 85% of the audience is 21 years of age or older, determined by data on the composition of the viewership.

Cathy Judd-Stein, MGC Chair, expressed her desire for a thorough examination of the cannabis commission. She emphasized the importance of considering their regulations, as they possess an understanding of the local context in Massachusetts. Judd-Stein specifically highlighted her interest in the fourth ban on advertising and its impact on approximately 85% of the audience, a concern that has been raised by several individuals.

Public comment accepted by MGC on MA sports betting launch

Currently, the MGC is not actively making significant decisions or implementing specific measures regarding the matter of problem gambling and marketing. Nevertheless, the commissioners unanimously acknowledge the value of public input on the white paper under discussion.

The commission intends to initiate a period of approximately two weeks to receive public comments as the next course of action. This step is expected to take place well in advance of the commencement of sports betting in Massachusetts.

Judd Stein expressed his current main concern, which he believes is influenced by the introduction of sports betting. He emphasized the frequency and intensity of ad distribution, as well as its prevalence. Stein acknowledged that while the content of these advertisements can be fantastic, the issue lies in the overwhelming bombardment of these ads. Furthermore, if sports betting were to be legalized in Massachusetts, the prevalence of these ads would become an even more significant matter to address.