Maryland Lottery and Gaming Control Agency (MLGCA) recently rejected a request from sports betting operators to withdraw rules regarding promotional offers.
The Baltimore Sun reported that the MLGCA was contacted by several sportsbooks, including DraftKings, regarding the rules the agency put into effect six months ago. Sports betting has been legal in Maryland since December 2021.
One of the regulations that concerned sportsbook operators was one that required them to submit descriptions of promotional offers at least two days before their effective date. Officials at the MLGCA said it gives them the ability to protect customers from offers that may be misleading.
Many of the 38 states that have sports betting used the words “free” or “discounted bets” in the past in ads. Most sportsbooks now have changed that to the term “bonus bets” in an effort to placate regulatory agencies. The issue, however, is that the language is often in larger type or bold lettering. Agencies said that the conditions of those promotions can be misleading and are put in smaller print at the bottom of the ad.
In an effort to reach a compromise, sportsbook operators suggested a period of five business days to submit a promotion, saying that the current period of two days allows “no notice or time for advance review.”
In their response to the current two-day period, sportsbook operators said, “The submission of promotions prior to advertising/marketing efforts limits the ability to adequately consider promotions because of unknown variables which often accompany events that are attractive for sports bettors.”
Sportsbook operators added that events like the NCAA basketball tournament would not allow them to adequately promote ads that would appeal to bettors before the start of one of the heaviest bet events in sports.
Another concession sportsbooks wanted was to curtail a regulation that limits the amount of free bets companies are allowed to offer every year. That request, made by DraftKings, was also denied.
MLGCA Director John Martin, told the Baltimore Sun that his job is to make sure the public is protected.
“(We) seek a balance under which sportsbooks can prosper amid a fair climate for bettors,” Martin said in a statement. “We’re eager for Maryland’s sports wagering industry to thrive and generate funding for education, and we’re also mindful of consumer protections. We provide guidance to sportsbook operators so they may bring a variety of promotions to the market. At the same time, we feel that reviewing the details of promotions before they launch is a reasonable step that’s in the best interests of consumers.”
