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New York regulators are taking note of the blurring of lines between sports-betting content on broadcast outlets and advertisements that require specific disclosures.
The New York State Gaming Commission (NYSGC) held a roundtable discussion last month with representatives from the state’s licensed sportsbook operators to get feedback on how the state should proceed with regulations and enforcement of existing laws and rules regarding advertisements.
“These days, I find myself paying far more attention to the advertising on sports networks than I do sports itself,” said Brian O'Dwyer, chair of the commission.
Operators said that as the industry has progressed, they have sought to integrate their product with sports programming in addition to purchasing traditional ads.
“A lot of the sports-betting operators are attempting to have integrations with sports programming … where we are woven into the fabric of how folks are describing a game because those betting really enjoy that kind of content, and it's a great way for us to reach our potential customers who are sport watchers,” said Cory Fox, senior vice president of public policy and sustainability at FanDuel.
“Where exactly that becomes an advertisement versus an integration can be a challenge,” Fox added.
O'Dwyer said he believes that as the industry's progression has continued, some operators have clearly demonstrated that challenge.
“I think the industry has grown, and as we see and as there are many more sports programs which seem to be integrating … I’m seeing things that I consider to be very close to non-compliance, if not over [the line],” he said.
“When I'm listening and I hear particularly odds are being disseminated and [point spreads] … that appears, frankly to me, to trigger our regulations in terms of disclaimers and the helpline.”
New York's regulations, like those of many other states, expressly require operators to include a responsible gambling message in any ads for their products.
But representatives from multiple operators argued that only a direct call to action to place a bet or use the sportsbook would trigger the requirements, rather than simply presenting factual information.
“I think the important aspect of that is it's much more of a citation of source,” said Elliot Kelly, senior corporate counsel for DraftKings. “Without providing where those odds come from, it lacks that credibility that the odds being provided are legitimate, you can rely on this forecast because it comes from a reputable operator.
“I understand the challenge, I agree with it, but I think that is sort of where we would look at there's a differentiation between the odds being presented are there for more sort of informational purposes,” he added.
Sarah Brennan, vice president of compliance for BetMGM, agreed.
“We look at it as, is this a fact? Are we presenting the audience with a fact, or are we trying to engage the audience in a call to action to come wager with us with an inducement?” she said.
“An inducement will require a disclaimer; a fact we don't necessarily feel would.”
“Understood that if it's there, there are some difficult scenarios where those people walk right up to the line,” Fox added. “I think that as compliance folks, we do try to make sure that we stay on the right side of that line, but it can be challenging.”
One area where the operators pushed for clarity from the commission is the topic of using a national problem gambling helpline number rather than the existing requirements to use the local New York HOPEline.
Operators pushed for a regulatory change to allow operators to use the national 1-800-GAMBLER hotline in national advertisements rather than having to post another separate state hotline, as multiple states still require.
However, although operators claimed that the national hotline is just as effective, Rebecca Cooper of New York’s Office of Addiction Services and Supports said that the handoff from the national hotline is not always a smooth one.
“The way that actually works is the rollover to any other state hotline is based on the area code that someone calls from, so it's not foolproof,” she said. “When we talk about complexity with the multiple numbers, I think our goal is to make sure that those who are currently experiencing a problem or at risk can get help as soon as possible.”
