New York Bill Targets Advertising Rules for Online Sportsbooks

The statewide expansion of sports betting helped the activity reach millions of Americans in nearly 40 US states. Currently, approximately a dozen states are yet to legalize wagering on sports with the list including Minnesota, Texas and California, among others.

With the expansion of wagering on sports came the need for stricter regulation of advertising. This came amid fears about the detrimental impact of excessive betting and the concerningly growing number of calls to gambling helplines.

On January 8, 2022, New York became the latest state to launch legal online betting. Although the state introduced a 51% tax applicable for online sportsbooks, it quickly confirmed its position as a leading betting market for North America.

However, with the growth of betting across the state, a new proposal called to expand the advertising restrictions to include mobile wagering licenses. The proposal was tabled by Assemblyman Clyde Vanel. Earlier this month, he introduced Bill 10658, a proposal that called to expand the rules related to gambling advertising to include mobile betting operators.

Proposal in New York to Strengthen Rules for Betting Ads

Per the proposal, sports betting advertisements must not depict anyone under the legal gambling age which is 21 in New York. Additionally, Bill 10658 also requires a gambling help hotline to be a part of such advertisements. “Where the advertisement is a video, such gambling hotline number shall be visible for the entire duration of the advertisement,” reads the proposal.

In case Bill 10658 is approved by lawmakers in New York, it would implement the new rules in 90 days. Currently, the proposal is with the Assembly Racing and Wagering Committee.

Similar to other states, New York sports betting ads shouldn’t be misleading, false or deceptive. Recently, the state also banned the use of phrases, including “risk-free” and “free,” from gambling advertisements. The bill that banned such phrases from sportsbook ads was passed by the Senate early last month and is set to come into effect in 60 days.

Advertisements Are Important for the Legal Betting Sector

The expansion of gambling advertising restrictions in New York doesn’t come as a surprise. Across the country, lawmakers seek to strengthen the promotion of betting activities and expand the reach of gambling helplines through advertisements.

With that in mind, the American Gaming Association (AGA) highlighted the importance of advertisements for the legal betting sector. Previously, the Association conducted research that revealed that approximately 70% of the bettors who used offshore sports wagering providers weren’t aware they were placing bets with unlicensed sportsbooks.

Earlier this year, the AGA wrote in a report: “Advertising by legal sportsbooks plays an important role in informing consumers about legitimate betting operators and in migrating those consumers to safe betting options.”

The Association outlined that advertisements by legal betting operators help them capture market share and raise awareness. However, the AGA found that advertising rates decline as the markets mature.