Addressing backlash to the relentless wave of sports wagering advertising, the NFL, NBA, MLB, and NHL are among U.S. professional sports leagues and media entities that just announced the formation of the Coalition for Responsible Sports Betting Advertising.
The group, which is promoting six core principles needed “to implement and maintain consumer protection policies,” also includes the WNBA, MLS, and NASCAR, with NBCUniversal and Fox Sports as founding media partners.
“As the legalization of sports betting spreads nationwide, we feel it is critical to establish guardrails around how sports betting should be advertised to consumers across the United States,” the coalition said in a joint statement. “Each member of the coalition feels a responsibility to ensure sports betting advertising is not only targeted to an appropriate audience, but also that the message is thoughtfully crafted and carefully delivered.”
As widespread sports wagering in the United States nears its fifth anniversary, there are currently 29 states and jurisdictions with commercial sports wagering available. There are also a handful of states with sports betting available through tribal gaming.
Since June 2018, national commercial wagering handle in the post-PASPA era has surpassed $217 billion, according to figures compiled by Sports Handle, including $26.6 billion in the early part of this year. All-time operator gross revenue has cleared $17 billion, while state tax revenue is nearing $3 billion.
“We applaud the responsible advertising commitments announced today by many of America’s biggest players in sports entertainment,” said Casey Clark, senior vice president of the American Gaming Association. “Closely mirroring commitments already made by AGA members through our recently updated Responsible Marketing Code for Sports Wagering, these efforts reflect a shared prioritization of responsible gaming and consumer protection. Building a sustainable legal wagering market requires alignment from the entire sports betting ecosystem, and today’s announcement is another important step.”
What are the six core principles?
— David Payne Purdum (@DavidPurdum) April 19, 2023
The group’s six principles deal with marketing to only gamblers of legal wagering age, not promoting excessive gambling, and ensuring that sports betting ads are in good taste and not misleading. Herein, advertisers should conduct internal reviews of advertisements and also review customer complaints regarding advertising. In marketing to gamblers of legal age, operators and advertisers will be walking a fine line considering a handful of states allow wagering at 18, while most require bettors to be at least 21.
“Forming this coalition with fellow leaders in sports and entertainment is another important step for our industry as legal sports betting continues to grow,” said Kenny Gersh, executive vice president, media & business development, for Major League Baseball. “Providing new fan engagement opportunities to enjoy our sport in more ways, we have to continue to be mindful and deliberate with how these sports betting options are presented and to whom they’re directed.
“Layering this coalition’s work in the advertising arena on top of our efforts to promote responsible gambling and address problem gambling challenges will lead to more thoughtful planning and implementation across the board.”
While most complaints from the general public revolve around the frequency of sports wagering advertisements, regulators have recently made efforts to address the specific language used in them. Regulators in Ohio and Massachusetts, which both launched legal betting this year, produced more stringent rules and regulations.
“FOX and FOX Sports are proud to be charter members of this broad and important coalition,” said Mike Mulvihill, FOX Sports executive vice president. “As America’s leader in live sports, we are committed to providing fans a responsible and ethical engagement with sports betting, keeping the integrity of the games and our broadcasts at the forefront at all times.”
Operators had already begun changing terminology in their promotional offers, with the biggest ones usually presented to the betting public when entering a new marketplace. The phrase “risk-free,” once a staple of introductory promotions for new bettors, has largely been removed, as both regulators and some professional leagues have asked operators to no longer use the term.
“We’re proud to join these prominent sports industry stakeholders in this important effort,” said the NFL’s David Highhill, general manager for sports betting. “Legalized sports betting offers fans another way to engage with their favorite sports, but just as we must support problem gambling prevention and resourcing, we must also remain mindful of how sports betting is presented and advertised to consumers, and this coalition should greatly aid in that cause.”
Federal regulatory body in the offering?
The coalition could be viewed as a body that could help self-regulate the industry in a bid to avoid federal oversight. Sportsbook operators recently aligned against U.S. Rep. Paul Tonko of New York, who filed a bill in February proposing to ban all online and electronic sports wagering advertising.
“On balance, in a regulated environment I think we’re all going to do a better job spotting problem gamblers, difficulties, people trying to manipulate games, etc., in a way we couldn’t when it was all underground,” said NBA Commissioner Adam Silver, whose league has usually been ahead of the curve when it comes to sports wagering. “I get complaints from fans who don’t like the fact that there are promotions during the games for sports betting. The good news is, in the next generation of customized, personalized feeds, if you don’t want it, you don’t have it. If you want more of it, you’ll get it.
“Having said that, I think we have to be really careful. I think there is a regulatory role there for the amount of advertising that you see in games.”
