A bill introduced in the House by New York Democratic Representative Paul Tonko proposes a broad ban on sports betting advertising. Entitled ‘The Betting on Our Future Act’, the bill seeks to “prohibit the advertising of sports betting in any electronic media subject to the jurisdiction of the Federal Communications Commission (FCC) and for other purposes.”
If approved, sportsbooks will not be able to advertise in media that are under the control of the FCC, such as TV, radio or the internet. The law is modeled after the Federal Cigarette Labeling and Advertising Act, which passed in 1965 and banned tobacco advertisements in the US.
If this bill passed, any violation would therefore be a violation of the Communications Act of 1934. Whether or not the act goes beyond the House, its proposal reflects the rapid growth of sports betting in the US and the social change that has resulted.
Operator spending on marketing and advertising
The New York representative highlighted the 2018 repeal of the 1992 Professional and Amateur Sports Protection Act (PASPA) by the Supreme Court, as well as increased marketing spend by US-facing operators during 2020 and early 2021. as posing a danger to the American people.
“Sports betting ads are out of control. Congress needs to be mindful of the industry’s power to inflict real and widespread harm on the American people.”
The legislator pointed to DraftKings’ sales and marketing spend of nearly $500m (£415m / €472m) during 2020. Most operators – with the notable exception of Flutter-owned FanDuel – cut spending with marketing into a greater focus on profitability. The operator spent more than $1 billion on marketing during 2022.
Tonko also pointed to the ‘Pew Research’ survey, which found that about 1 in 5 American adults will bet money on sports in 2022. He also argued that companies are using predatory tactics to attract new business. Big promotions and buzzwords like “no risk” or “no hard bets”, he argues, pose a risk.
According to the National Problem Gambling Helpline Network, in 2021, the organization received 270,000 calls, 45% more than the previous year.
Tonko is criticized by the sports betting industry
The bill has faced criticism from an industry that opposes any federal or state restrictions on advertising. “The American Gaming Association (AGA) and our members strongly oppose any legislation that seeks to prohibit or limit advertising for casino games, including for legal sports betting,” said Chris Cylke, Senior Vice President of the AGA.
“Responsibility is a cornerstone of the legal gaming industry and that includes advertising. In fact, there has never been so much attention or resources invested in responsible gaming and problematic gaming features.”
“This includes our proactive efforts to establish Responsible Marketing Codes for Sportsbooking, which require the inclusion of responsible messaging and place restrictions on target audience, channels and content.”
Cylke argues that, should this act become law; it would benefit illegal offshore operations and undermine state and tribal gaming regulators. In addition, the vice president said the proposed legislation violates federal protections of free speech.
