The New York State Gaming Commission considered an outright ban on third-party sports betting advertisers and affiliates. But they softened their approach and permitted cost-per-acquisition agreements instead. A total ban may still come into play in the future, according to PlayUSA.
For now, affiliates may still advertise promotions and attract new customers to sportsbook operators in New York state. Affiliate sites must reveal all their partnerships with sportsbooks, whether to promote, refer customers or run advertising for the licensee. Despite what some would say are a good deal to affiliates, limitations may come up in the future.
According to SBC Americas, the Commission Chairman Brian O’Dwyer warned affiliates:
“If I find that within the next six months to a year that there have been significant problems with the type of advertising that’s coming down I will come back to the staff and to my fellow Commissioners and ask that we revisit that rule and prohibit third-party advertising,” O’Dwyer said.
Earlier in the year, the commission strengthened restrictions on sports betting ads with rules that would prohibit compensation of third parties based on:
- Number of customers
- Number of bets
- Wager outcomes
The group also agreed to an addition to existing marketing rules when it came to misleading terms like:
- “Risk-free” when describing a promotion
- Revenue share affiliate agreements
- Advertising which could entice underage players.
New York followed the Massachusetts example and joined the list of regulators taking a closer look at the affiliate marketing network in the U.S. Limited ads are acceptable…for now.
