New York broke its monthly sports betting handle record this month and is closing in on $1.8 billion for January 2023. The Empire State could be introducing the next concept that could trickle across the industry.
A Federal Bill To Ban Sports Betting Ads
During the legislative session, many potential changes could be looming as the Empire State is the sports betting capital of the nation. Adding the iGaming sector, adding more sportsbook operators, lowering the tax rate, adding tribes to the mobile sports betting operation, and other measures have been discussed.
Problem gambling has been on the rise in not only New York but also across other states. New accounts are being made, and there is a possibility that gambling addictions affect at least one percent of the population.
The Betting on our Future Act, introduced by Rep. Paul Tonko, aims to regulate sports betting similarly to how cigarettes are regulated. Under the act, sports betting advertisements are prohibited on any medium under the jurisdiction of the Federal Communications Commission, including television, radio, and the Internet.
This would affect other jurisdictions across the board because other states are looking to hop on the trend as well. If any measure makes it through, advertising would take a drastic turn as major billboards across the highways would disappear.
Sportsbooks Have Been Under Fire Lately
Bookmakers that accept wagers in the United States and across the globe use vast marketing campaigns and other tactics to gain more customers that will relate to the increase in market share. However, sportsbooks use jargon like “risk-free” and “no-sweat” bets, which could seem to help the consumer more, but it may not be the case.
Words like “risk-free” and “no-sweat” are methods these sportsbook operators used to gain consumers. Risk-free bets have limits as to how much these promotions will give back, and consumers have to wager their own bankroll to receive the free bet after the event is over.
According to the fact sheet, DraftKings was specifically mentioned, and it was stated that the company spent a total of $500 million on sales and marketing in 2020 and an additional $400 million in the first half of 2021.
Young adults are the main target demographic for sportsbooks, as between 60 to 80 percent of high schoolers have gambled before.
The NBA is one of the leagues that take sports betting very seriously. The league will continue to prohibit its partners from using the phrase, “risk-free”.
Is This the Best Approach Moving Forward?
Even if the proposed federal sports betting bill fails to pass, it could serve as a wake-up call for the sports betting industry to address its current state and take necessary steps toward improvement. The Ohio Casino Control Commission hasn’t tolerated any mistakes.
In addition to BetMGM and Caesars, DraftKings has been penalized since launching. Ohio’s strict approach has certainly had its effect on the industry.
