Pennsylvania Sports Betting Companies Instructed to Change Advertising Words
Sports betting operators in Pennsylvania have received instructions to eliminate certain words and phrases from their promotional materials.
The Pennsylvania Gaming Control Board (PGCB) recently joined the ranks of several other states in requiring regulated sportsbooks to avoid using terms like "free bet," "risk-free bet," or "free play," which suggest that a sportsbook offer carries no risk. The PGCB issued an email to its sports betting licensees last week, detailing the new mandate.
The email stated: "At the direction of Executive Director Kevin O'Toole, we would like to request that you revise the promotional terms and conditions and all applicable advertising to remove references to 'free bet,' 'risk-free bet,' 'free play,' or any other similar language which infers that a promotional offer is free when it is actually not."
A more suitable way for sportsbooks to advertise these types of promotions might be to label them as "bonus bets" or "second-chance bets." Many of these types of offers come with numerous terms and conditions attached, and customers are expected to continue gambling to receive their initial deposit back. Consequently, risk is inherently present.
The PGCB's action follows a trend where sports betting advertisements have been scrutinized around the country, with suggestions that they suggest there is no financial risk associated with the promotions. In Pennsylvania, which has legalized sports betting, it is the latest state to instruct its operators to avoid employing "risk-free" language.
A legal dispute in New York exacerbates concerns about the legitimacy of the advertisements. Caesars Sportsbook faces a class-action lawsuit, where a plaintiff accuses the company of misleading her into thinking that her $125 initial deposit and subsequent wager had no risk. As a result of numerous disgruntled customers turning to state gaming authorities, states like New Jersey, Ohio, New York, and Pennsylvania have urged their sportsbooks to review their advertising strategies.
However, not everyone agrees with these measures. Rep. Paul Tonko (D-New York) has proposed stricter regulations. He introduced "The Betting on Our Future Act," which aims to ban sports betting ads on media regulated by the Federal Communications Commission (FCC) in February.
"The excessive, uncensored promotion of these sites needs to be put in check," Tonko commented when filing the bill in the US House of Representatives. "My legislation puts a halt to this dangerous practice and sends a powerful message to the online sports betting advertisers. Congress must take the necessary steps to rein in an industry with the power to inflict real, widespread harm on the American people."
There are opponents to limiting how and where sportsbooks and online gaming platforms can advertise. The American Gaming Association, the Washington, DC -based lobbying group representing the US gaming industry, and media companies argue that curbing advertising could infringe upon their constitutional rights.
Sportsbooks and internet casinos allocated over $1.8 billion for media advertising in 2022, with a significant share allocated for local television broadcast networks. According to BIA Advisory Services gaming analysts, "The online gambling business vertical is enabling a continuing boost for local media sellers that operate in states where gambling is legal."
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