Ever since the Supreme Court allowed States to legalize sports betting in America, the online gaming industry has enjoyed phenomenal growth while stamping down black markets. However, experts worry that unregulated advertisement reaches vulnerable user groups and a tighter control will serve the public interest best.
Legal Sports Betting with Spill-over Effects
The era of regulated sports betting in the United States is barely a few years into its existence, yet one of the most mature markets has seen calls for nationwide improvements in the State licensing mechanism. In-app betting and immersive live events have become the norm for the American sports market, both professional and college-level, but some aspects still cause concern.
Consumer groups fear that the intensive advertising across all media outlets – from online to print, TV and billboards – can lead to the distortion of market demand. More importantly, it can adversely affect minors, vulnerable gamers or simply people without the necessary disposable income to engage in sports-related real money gaming.
Mobile sports betting is as simple as playing a session of blackjack online, yet Americans see widespread advertisements for the first and almost none for the second. The regulation of gambling markets in the US has never taken into account the power and impact of marketers, particularly those that exploit the immense online user pools.
Sportsbook giants like DraftKings and FanDuel have engaged in a massive advertisement war for the last remaining online punter. Smaller operators and those licensed within a single State pitch in and the market is already beyond saturation point with offers of bonuses, prize pools and the “best odds possible”.
It all started when the Supreme Court ruled in 2018 that States can decide for themselves whether and how to regulate sports betting as part of their legal gambling offer. Nowadays, 35 states and the capital Washington DC all have legitimate sports betting licenses, with more on the way, US media reports.
Crucially, most States did not explicitly establish advertising standards as part of their licensing procedure. Operators pretty much say and do whatever they want in their campaigns, which seriously threatens the ethical and social reasoning behind a tightly regulated real-money gaming market.
With billions of dollars bet each year over official gaming platforms, it is an industry that the authorities cannot afford to overlook. Advertising policies and standards should be part of responsible gaming requirements and licensing procedures, market experts insist.
How Other Countries Regulate Real-Money Gaming Advertisement
The need to mitigate ads, promotions and put some order in the highly competitive online gambling world has always been high up the agenda of national governments and Gambling commissions.
Italy allows only sports related news and operator promotions to justify the skill and know-how nature of sports betting. The UK does not allow celebrity endorsements, including sports starts – something which is common in India, for example. Australia also has a licensed sports betting sector and is currently working on online ad restrictions.
One of the most finely regulated jurisdictions, Sweden, has even imposed licenses on business-to-business (B2B) suppliers like game and app developers, advertisers and other providers. Industry exponents are still relieved they did not have to face advertising restrictions related to specific hours within the day.
The Swedish gambling reform cites precise marketing standards for types of games, user groups and media platforms. Calling it “adjusted moderation”, the government puts extra requirements on software providers and other B2B suppliers, effectively introducing license categories all down the gambling vertical. The move has had its effects, market experts point out, limiting unlicensed gambling in the nation and protecting consumers from unethical practices.
