LOCALIZE IT: Sports betting growth spurs new marketing code
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The U.S. gambling industry is adopting a new responsible marketing code that will ban sports books from partnering with colleges to promote sports wagering, bar payments to college and amateur athletes for using their name, image or likeness, and end the use of the terms “free” or “risk-free” to describe promotional bets.
The American Gaming Association says the changes are necessary to keep up with developments in the fast-growing legal sports betting industry, which currently operates in 33 states plus Washington, D.C.
The new rules also follow criticism of the gambling industry from regulators and those who treat gambling addiction; several states are outlawing the kind of betting partnerships covered by the new code, and others are taking a renewed look at overall sports betting advertising.
One New York congressman has introduced legislation that would ban all online and digital sports betting advertising.
Here are some questions and context to use when looking into sports betting marketing issues in your area.
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READ AP’S LATEST
New sports wagering code bans college betting partnerships
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STATES WHERE THE SPORTS GAMBLING INDUSTRY OPERATES
Arizona
Arkansas
Colorado
Connecticut
Delaware
Illinois
Indiana
Iowa
Kansas
Louisiana
Maryland
Massachusetts
Michigan
Mississippi
Montana
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oregon
Pennsylvania
Rhode Island
South Dakota
Tennessee
Virginia
Washington
West Virginia
Wisconsin
Wyoming
(Also Washington, D.C.)
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QUESTIONS TO ASK
— How are casinos and sports books marketing themselves in your area? Does their advertising include responsible gambling messaging, such as the number of a help line that gamblers can call if they suspect they have a problem?
— Have colleges or universities in your area considered or been approached by gambling companies about a possible partnership to promote sports betting? If they have but a deal hasn’t been reached, what factors have prevented it from happening?
— What do gambling regulators in your state say about casino and sports book marketing? Has your state passed legislation regulating the type or quantity of advertising that can be done?
— What steps are casinos and sports books in your area taking to carry out responsible gambling practices? This is a self-imposed policy that virtually the entire commercial gambling industry has adopted, but details can vary from place to place.
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RESOURCES
— The American Gaming Association’s new responsible marketing code: https://bit.ly/3Kfbi0Q
— The National Council on Problem Gambling has extensive resources and information on gambling disorders and treatment: https://www.ncpgambling.org
— Previous AP coverage:
Bet responsibly? A struggle for some as sportsbook ads widen
Sports betting ads: Industry weighs how much is too much?
Problem gambling foes warn on sports betting college deals
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PUBLISHABLE CONTEXT
Ruling in a case brought by New Jersey, the U.S. Supreme Court in 2018 cleared the way for all 50 states to offer legal sports betting if they chose to do so. Currently, 33 states and Washington, D.C., offer it.
Since the 2018 ruling, the industry has grown rapidly and become flooded with companies vying for market share, making attracting new customers a top concern. Legal sports books have spent lavishly on advertising — to the point where regulators in some states and on the national level have floated the idea of regulating or even banning sports betting ads because they have become so ubiquitous.
As part of this advertising effort, sports books, often in partnership with casino companies, have signed marketing deals with professional sports teams and colleges to bring their brands into stadiums. On the college level, this has raised concerns that marketing, such as in-stadium ads, online messaging and direct mail pitches will be seen by students who are younger than 21 and therefore can’t gamble legally.
The American Gaming Association, the national trade group for the commercial casino industry, has updated its responsible marketing code. The changes, unveiled Tuesday, will ban sports books from partnering with colleges to promote sports wagering, bar payments to college and amateur athletes for using their name, image or likeness, and end the use of the terms “free” or “risk-free” to describe promotional bets.
The industry says it has always intended to proactively update its code to keep pace with developments in the fast-growing market, and the new policy calls for the code to be reviewed annually and acted upon when warranted.
But many of the changes are being made in response to criticism the industry has received from gambling regulators and those who treat compulsive gambling. And some of the changes reflect new ways of doing business that many sports books had already adopted in recent months, including changing their terminology to describe promotional bets. Where they once were referred to as “free” or “risk-free” bets, a typical description now is “no-sweat bets” or something similar.
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Localize It is an occasional feature produced by The Associated Press for its customers’ use. Questions can be directed to Katie Oyan at koyan@ap.org.