National Consumers League Says Sports Betting Ads on Smartphones Must Go

Following a report that the US National Consumers League (NCL) released this week, which shows the rise of online sports betting advertisements, the organization calls for a ban on the practice, especially the use of push notifications for this purpose.

National Consumers League Seeks Sports Betting Ads Ban

The report specifically analyzes how sports betting apps use smartphone push notifications to promote their services. Based on its findings, NCL concludes that the use of these notifications for marketing may constitute a prohibited unfair practice under federal law.

According to the NCl, using push notifications to promote an addictive product is a particularly aggressive marketing tactic. Smartphone notifications demand attention at all hours, whether someone is walking down the street, working, relaxing at home, or lying in bed. Once enabled, these alerts can be persistent and difficult to ignore throughout the day.

Over four weeks, the NCL analyzed more than 100 push notifications sent by the three largest sports betting apps – FanDuel, DraftKings, and BetMGM. The review found that 93% of these messages contained advertising content. Of those, 62% included direct prompts to place bets, often using explicit calls to action such as “bet now.” Additionally, half of the notifications promoted incentives like bonuses, bonus bets, or odds boosts. These types of offers would be largely banned under the proposed SAFE Bet Act, which the NCL supports.

Unlike everyday consumer goods like shoes or T-shirts, sports betting platforms promote a form of gambling that carries serious risks, the organization says. The harms associated with gambling are well-documented, including higher rates of suicide, intimate partner violence, and financial distress such as bankruptcy.

What the NCL Proposes

In an effort to curb aggressive sports betting marketing tactics, the National Consumers League (NCL) is backing three legislative proposals currently under review at the federal and state levels.

At the federal level, NCL supports the SAFE Bet Act, introduced in the US Congress. The bill aims to ban sports betting advertisements that include promotional offers, restrict the use of artificial intelligence to generate personalized betting incentives, and limit the hours during which betting ads can be shown. 

At the state level, NCL has endorsed the Regulating Addictive Notifications Act in the New York State Senate. This bill would bar sports betting companies from sending promotional push notifications or text messages designed to solicit wagers. In New Jersey, NCL is backing Assembly Bill A5207, which would prohibit internet-based sports betting advertisements, including those on mobile apps.

In addition to its legislative efforts, NCL is calling on the Federal Trade Commission to investigate the use of push notifications as a marketing tool, arguing that such practices may violate federal laws prohibiting unfair or deceptive business conduct.