The Responsible Marketing Code for Sports Wagering, which governs sportsbooks and other members of the American Gaming Association (AGA), underwent substantial revisions in March.
What potential effects could these revisions have on the Massachusetts Gaming Commission’s perspective on advertising by sports betting operators within the state?
Just weeks after the launch of online sports betting in Massachusetts, concerns are being raised about the overwhelming presence of sports betting advertisements across the state.
No more ‘risk-free’ terminology
The AGA has implemented a new regulation that prohibits members from using the term “risk-free” in their advertisements.
Furthermore, it is not permitted for sports betting operators to establish any partnerships or agreements with colleges or universities regarding sports betting activities. This includes being designated as the official sportsbook of a college or its athletic department.
The revisions to the Responsible Marketing Code for Sports Wagering by the AGA may not carry legal authority, but they do act as a directive for its members. These modifications could significantly influence jurisdictions that regulate the industry.
A bill was proposed in the US House of Representatives earlier this year, aiming to prohibit sports betting advertising on television, radio, and the internet. However, the bill has not yet been brought to the floor for a vote, leaving its future uncertain.
No NIL deals between sportsbooks and college athletes
On March 28, the AGA made an announcement outlining several changes to its marketing code for members. One of these changes involves prohibiting members from entering into NIL deals with college athletes (Name, Image, Likeness).
- Banning college collaborations that “endorse, promote, or advertise gambling on sports activities”
- Amateur and college athletes are forbidden from entering NIL agreements with sportsbooks.
- Sports betting advertising will now exclusively feature individuals who are 21 years old or older.
- Modifying all mentions of the “legal age of wagering” to “21-plus.”
- Prohibition of the usage of “risk free” in sports betting promotion
Will MGC introduce regulations to reflect AGA policy?
Massachusetts regulators efficiently facilitated the launch of the sports betting market in the state, accomplishing the process within a relatively short span of six months. The diligent efforts of the five-person gaming commission were instrumental in establishing comprehensive regulations to safeguard both consumers and the industry. Thus far, the introduction of legal sports betting in Massachusetts has proven to be a triumphant endeavor.
However, there is potential for modifications to the regulations that oversee the industry. The MGC has already made changes to the manner in which sportsbooks are allowed to compensate affiliate marketing partners. Additionally, the state has prohibited sports betting operators from deducting their promotional costs from their revenue and tax obligations.
In a significant development, the MGC unanimously voted during a meeting on March 27 to mandate the inclusion of precise responsible gambling messaging in print or digital sports betting advertisements. This requirement encompasses the inclusion of a responsible gaming logo and the 1-800 responsible gambling hotline number.
Furthermore, all sports betting advertisements must incorporate the statement “Begin Smart, Play it Smart” as a mandatory requirement.
In a statement, AGA President Bill Miller stated that advertising is crucial in guiding consumers away from predatory illegal sportsbooks and towards the safety and regulations of the legal market, while also offering responsible gaming resources.
The Boston Globe issued a cautionary editorial prior to the launch of online sports betting in Massachusetts, expressing concerns about the overwhelming influx of sports betting advertisements that consumers in the state would encounter. The opinions of citizens and the aforementioned article could potentially influence the MGC’s decision to broaden their regulatory control over sports betting advertising.
Current MA advertising restrictions
It is now possible that Massachusetts might introduce specific regulations to address the use of “risk-free” language and the inclusion of individuals under 21 or their likeness in advertisements, following the AGA’s decision to impose stricter advertising restrictions on its members.
In the previous month, the Massachusetts Attorney General’s office expressed its concerns regarding the content of sports betting advertisements and the potential harm it poses to underage individuals. Massachusetts has already implemented regulations to safeguard college students and underage consumers from such advertising. To be more specific, the state prohibits sports betting ads on platforms that are primarily used by individuals under the age of 21.
Find out more about how DraftKings’ advertising strategy is evolving and its impact on Massachusetts.
If you or someone you care about is facing difficulties related to gambling, feel free to reach out to a trained specialist at no cost, 24/7. You can call 1-800-327-5050 or visit www.mahelpline.org/problemgambling for assistance.
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