Regulators are Becoming More Strict with Sports Betting Companies

The advertising laws and responsible gambling practices are receiving increased attention from the regulators who oversee American sports betting. The actions of the most recent states to join the list of states that allow sports betting provide proof that the industry has been moving in that way.

Regulators in the state of Ohio announced fines totaling more than $1 million for infractions committed by Barstool Sports, MGM, Caesars, and twice-bitten DraftKings. Significant advertising limits are included of Maine’s recently published draft regulations. Also, various initiatives to limit the advertising tactics of the sector have been made in Massachusetts as a result of regulatory hearings.

Operators’ Feet Are Held to the Fire by OH Regulators
The limitations on advertising are comparable to those in most other states. The difference lies in enforcement; in Ohio, six-figure fines are being issued, so it appears that there won’t be any handouts.

Ohio sportsbooks will be subject to a zero-tolerance stance from the OCCC when it comes to RG infractions, and it’s logical to expect that the fine will rise over time if there are more offenses. The fines levied by the OCCC are significantly higher than those levied in New Jersey or Pennsylvania, where penalties—aside from a $150,000 fine for a proxy betting scandal—typically fall in the low-five figure range. It’s still a long way from European standards, where seven- and eight-figure fines are now typical.

Regulators in MA take action that lawmakers would not
Lawmakers in Massachusetts spent a lot of time talking about advertising as they debated authorizing sports betting. In the end, many of the advertising prohibitions were lifted because lawmakers deferred to regulators with these choices.

Together with the standard limitations, the MGC:
-Imposed a requirement that 75% of the audience for sports betting commercials must be reasonably regarded as being 21 or older.
-During licensing hearings, it sought operators to consent to a ban on marketing on college campuses.
-Partnerships with Bay State universities or athletes under the age of 21 are prohibited.
-The terms “free” and “risk-free” are forbidden in advertisements.

The state’s cannabis sector must abide by a 75% standard, which the MGC spent considerable time discussing boosting to 85%. When it was discovered that an 85% requirement would probably forbid commercials at athletic events, the MGC settled on 75%. Once the market opens, Massachusetts sportsbooks will need to abide by tight rules.

Upshot
More stringent regulations for sports betting providers are becoming the norm in the U.S., especially in the areas of responsible gaming and advertising. Recent state launches have shown that operators had to properly promote their brands. The same is true for the upcoming Massachusetts launch, where marketers will have to properly promote their promotions for Massachusetts sportsbooks.

At a GeoComply-hosted webinar in September 2021, Director of the New Jersey Division of Gambling Enforcement David Rebuck warned that if the industry doesn’t self-regulate, authorities will have no choice but to become involved.