Not all the television ads leading up to and through the Super Bowl drew laughs from the likes of Ben Affleck and Jennifer Lopez pitching Dunkin Donuts. Some plugged sports betting, according to Legal Sports Report.
The future of sports betting promotion in advertising may be a limited one. New York Rep. Paul Tonko introduced the Betting on our Future Act, which would prohibit any ads in any medium where the FCC has oversight, be it television, radio and the internet.
Sportsbooks are using a “variety of predatory tactics,” according to a fact sheet distributed by Tonko. These include the use of “risk-free” and “no-sweat” bets in promotions to acquire customers. The fact sheet singled out DraftKings, which spent $500 million in sales and marketing in 2020 and another $400 million in the first half of 2021.
The sheet labeled children and young people as the fastest-growing demographic of gamblers, albeit children of high school age. Between 60 and 80 percent of such students admit to gambling for money already, according to the International Center for Youth Gambling Problems & High-Risk Behaviors.
That sheet also noted that universities and colleges have partnered with sportsbooks. That gives the industry “direct access to a new and impressionable generation of gamblers,” Tonko said.
Whether the bill goes anywhere or not, it sends a signal that the industry needs to fix the problem.
Ohio state regulations have led to fines for BetMGM, Caesars and DraftKings since the January 1 launch because of banned language in ads. Prepare for a similar approach in other states.
Sports Business Journal reported that the NBA will ban its betting partners from use of “risk-free” on league and team-controlled platforms. Some operators have already shifted to “bonus bets” instead of free bets.
