NYSGC Considering Changes to Its Online Sports Betting Regulations

By John Isaac,
Editor at online-gambling.com

John Isaac Editor at online-gambling.com

John Isaac is an editor with many years of experience in the gambling industry. He writes expert articles on card games like blackjack and poker. In addition, he is also well aware of the US gambling laws and the Indian and Dutch gambling markets. You can rely on verified information and insightful details.

• Twitter
• Email

More About John Isaac

Last updated: March 6, 2023

The New York State Gaming Commission (NYSGC) is considering changes to its regulations on promotions and advertisements for online sports betting. These changes are aimed at preventing underage individuals from being exposed to betting through licensed operators in the state. Edmund Burns, the general counsel for NYSGC, sent a memo to commissioners outlining 18 topics, including the proposed rule changes, which could be approved in just a few days.

The proposed rules aim to prevent marketing materials from influencing underage individuals. This includes forbidding the use of cartoon characters or entertainment that primarily appeals to minors. Additionally, sports betting advertisements in higher education settings, such as college newspapers, broadcast outlets, and campuses, would be banned under one of the proposed rules.

Sports betting operators in New York may also be prohibited from promoting the activity as a “rite of passage” into adulthood. This potential rule comes as online sports betting has launched in the state in January 2022 and has quickly become the leading US market in terms of handle and gross gaming revenue.

What Inspired The Proposed Regulations?

The proposed regulations in New York are inspired by rules implemented in other states, such as Ohio, Massachusetts, Arizona, and Virginia. These regulations aim to promote responsible gambling practices and prevent operators from using predatory tactics in recruiting new customers.

“Elements of the proposal are derived from the American Gaming Association’s Responsible Marketing Code for Sports Wagering, which is a private trade association’s voluntary self-regulation code, and sports wagering advertising regulations from other states, such as Arizona, Massachusetts, Ohio, and Virginia,” – stated Burns in the memo.

One proposed regulation aims to prohibit endorsements for sports betting sites by individuals under 21 years old, following a similar rule established in Massachusetts. However, professional athletes under 21 are an exception. Additionally, operators would be forbidden from using phrases such as “free,” “cost-free,” or “free of risk” in their promotions if bettors must first risk their own money or suffer a loss. This rule is also in place in Ohio.

Another proposed rule requires operators to include clear and conspicuous ways for recipients to opt out of receiving marketing materials in the future. For instance, email advertisements must contain an email address or website link for recipients to submit their request. Other direct marketing materials should have at least one of the following: an email address, a website address, a physical mailing address, or a phone number. Operators must process these opt-out requests “as soon as practicable” and within 15 days of the request.

What Are Operators Responsible For?

Operators are responsible for the content and conduct of all promotional materials and branding, including ads produced or published by affiliate partners. This means that operators must ensure that their partners are also compliant with the proposed regulations. As sports betting operators face criticism for their predatory tactics in recruiting new customers, the NYSGC is considering new regulations. A New York congressman has also proposed federal legislation to ban sportsbook commercials and advertisements.

In conclusion, the NYSGC is considering changes to its regulations on promotions and advertisements for online sports betting. These changes aim to prevent underage individuals from being exposed to betting through licensed operators in the state and to promote responsible gambling practices. The proposed regulations are inspired by rules implemented in other states and would prohibit the use of certain marketing materials and phrases. Operators would also be required to include clear and conspicuous ways for recipients to opt out of receiving marketing materials in the future.