Countdown for New York Gaming Bill Enforcement to Fortify Advertising Protections
The New York Senate wants to mandate casinos and sports betting companies to publicly warn gamblers about the potential risks and addictive nature of their actions in their advertisements.
The senate in Albany unanimously approved legislation in late May that would change New York's gambling advertisement rules. This ruling also applies to racinos, parimutuel wagering businesses, fantasy sports, and video lottery venues.
On May 30, the Senate passed Senate Bill 1550 with a vote of 57-0. The bill is now under review in the Assembly, but the current legislative session is coming to a close. The State Legislature is scheduled to shut down on June 6.
The Assembly version of the legislation is Assembly Bill 1118. This bill requires all gambling advertisements to include warnings about the possible adverse effects of gambling.
Safeguarding Players
With the exception of Sen. James Sanders Jr. (D-Brooklyn) who was absent during the vote, the New York Senate believes that gambling companies should inform the public about the potential risks of their products, similar to how tobacco companies are required to present warnings.
SB1550/AB1118 requires the New York State Gaming Commission to collaborate with the New York Office of Addiction Services and Supports to create clear messaging regarding gambling risks. Additionally, the bill directs the commission to post the problem gambling hotline number - 1-877-8-HOPENY - on its website, as well as provide information and technical support for advertising guidelines.
Other gaming bills that need to be decided by Thursday's legislative deadline are Senate Bill 9236, which requests that 1% of the sports betting tax received by the state be allocated towards problem gambling treatment programs, and another 2% for youth sports.
Two more bills - Senate Bill 9044 and Senate Bill 9236 - aim to raise the minimum age for participating in fantasy sports from 18 to 21. However, these bills are still in Senate committees and unlikely to be approved in 2024.
State Sen. Joseph Addabbo (D-Queens), the Committee on Racing, Gaming, and Wagering's chairperson, was unable to legalize iGaming before 2024.
Federal Lawsuit Continues
This push to strengthen gambling advertising regulations follows a federal lawsuit filed earlier this year by a Bronx resident against DraftKings. Samantha Guery, the plaintiff, accuses DraftKings of engaging in deceptive advertising practices by using the phrase "risk-free" in their promotions. She claims this made consumers believe they had no financial risk when signing up for the sportsbook and making their first wager. Guery's lawyers argue that DraftKings did not adequately inform consumers that the "Risk-Free Bet" of $1,000 would be returned as credits that could only be used to make more bets, rather than being immediately cashable.
Several states have recently banned such sports betting advertisement language, but New York has not yet followed suit. The New York Gaming Commission clarifies on its website how "risk-free" promotions operate.
"Risk-Free Bets are when a patron receives the amount of a wager in free bets or site credits if the wager loses. These promotions are typically used as sign-up offers and are designed to lure customers to an operator platform. The bettors usually use a promotional code during registration, place their initial wager, and, if that wager loses, they are given the wager amount in free bets or site credit."
(Image: New York Senate legislative session nearing the close of the month-end deadline.)
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