NBA Alters Advertising Standards for Sportsbooks, Dismisses 'Risk-Free' Phrasing
The NBA is tightening regulations for sportsbooks affiliated with the basketball league and its teams, aiming to shelter fans from the potential perils of sports betting.
The NBA has chosen to revise its sports betting ad regulations to outlaw sportsbooks from utilizing "risk-free" terminology in their promotions. The Sports Business Journal was the first to report on the NBA’s amendment to its advertising rules.
The sports betting sector has been subject to criticism for aggressive advertising in recent years. During the summer, responsible gambling supporters argued that "risk-free" language may tempt some individuals to bet who wouldn't typically do so, expressing concerns about their understanding of the actual risks associated with online sports betting.
In anticipation of their 2023 sports betting launches, gaming regulators in Ohio and Massachusetts mandated that sportsbooks abstain from using "risk-free" language in their advertisements. Later, FanDuel disappointed these regulators by modifying its ads to "sweat-free."
Now, the NBA is taking action.
"We consider it a problematic term from a responsible gaming and problem gambling standpoint," Scott Kaufman-Ross, the NBA’s senior vice president of gaming, told SBJ. "It's crucial that we make our fans aware that sports betting involves inherent risk."
"The idea that anything in this area is risk-free goes against the main messaging and education surrounding sports betting. We simply feel it's the appropriate action for us," Kaufman-Ross added.
Advertising Rule Takes Effect Instantly
The NBA’s alteration in how sportsbooks advertise during its games necessitates its two official “Sports Betting Partners” to immediately halt all "risk-free" language from their marketing materials. In November 2021, the NBA declared DraftKings and FanDuel as its sportsbook partners. Other NBA sportsbook partners include BetMGM, Bally Bet, and theScore Bet.
These books will no longer be permitted to employ "risk-free" or any other language that indicates a customer's sports bet is without possible consequences. The NBA prohibition applies to the league’s televised games on NBA TV, as well as advertisements on NBA.com and team websites and social media feeds.
The NBA doesn't dictate advertising rules on its cable and broadcast network partners, so risk-free advertising spots can persist on TNT and ESPN. It’s the league's aim that such phrasing will be phased out completely before the 2023-24 NBA season begins next fall.
Review of Responsible Gaming
Individuals concerned about the ongoing growth of legal sports betting maintain that the industry's entrance into the US was reckless and potentially endangered some consumers with its potentially hazardous messaging. Young male adults are the most involved with sports betting, and this demographic is already more inclined to take risks.
"Betting, by its very nature, involves putting something of value at risk,” Alan Feldman, a distinguished fellow in responsible gaming at UNLV’s International Gaming Institute in Las Vegas, told Sports Handle.
UK bookmakers initially employed the term "risk-free" betting in the early 2000s to attract new customers. Gaming regulators there banned such advertising language in 2020.
The UK Gambling Commission now prohibits bookmakers from using advertising language that implies that a “money-back offer creates security (for example, because they give gamblers the chance to play again if they fail, or that a bet is risk-free or low-risk)."
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