Though New York has seen few problems with underage gambling, the New York State Gaming Commission (NYSGC) wants to prevent any possible future incidents. The commission unanimously passed regulations that would limit advertising, marketing, and promotions that target underage individuals.
The new rule states in part: “A casino sports wagering licensee or sports pool vendor shall not allow, conduct or participate in any advertising, marketing or branding for sports wagering that is aimed at persons under the wagering minimum age set forth in Racing, Pari-Mutuel Wagering and Breeding Law section 1332(1).”
The rules don’t go into effect immediately, however. There is a 60-day period for public comments. March also just so happens to be Problem Gambling Awareness Month.
Sports betting has been legal in the Empire State since January 2022 and the state has been one of the biggest revenue generators. In one year, New York has collected $709.2 million in taxes, as well as $200 million in licensing fees. They lead the country in both handle and revenue for a state.
NYSGC Chairman Brian O’Dwyer said at a meeting on Monday that being proactive when it comes to underage gambling is beneficial to the state.
“After one year, it is obvious that the introduction of legal online sports wagering has been a net positive for people in New York,” he said. “However, the commission is also cognizant that, along with the success, comes the potential for problem gambling,”
Additional language in the rule prohibits the terms “free” or “risk-free” in advertising as well as any other “false, deceptive, or misleading statements.”
Sportsbook operators such as BetMGM and Caesars have already taken out “risk-free” from their advertising, instead opting for “first-bet offer” and “bet credit.”
While New York has not had any issues with promotions aimed at underage gamblers, other states have. Ohio recently threatened BetMGM, DraftKings, and Caesars for sending promotional material to college-aged students.
At the University of Colorado, school officials ended a referral bonus program with PointsBet, though they did keep other parts of the $1.6 million partnership. Louisiana State University, Michigan State, and the University of Maryland also have partnerships with sportsbook operators.
Lawmakers are starting to notice the issue and proposing legislation. New York Congressman Paul Tonko recently introduced the Betting on our Future Act which would ban advertising gambling ads on television, radio, and the internet.
