Are we likely to see changes in US casino advertising? Well, that depends on whether two senators get their way about changes to sports betting regulation and how that then impacts the industry as a whole.
For now, the lawmakers only have sports betting operators in sight, but if their bill succeeds, it will probably have an impact across the industry. The proposed legislation wants to focus on artificial intelligence, advertising, and affordability. However, we can expect some pushback from operators who say the sector brings benefits like tax contributions and is already working hard to minimize possible risks.
The operators are keen to avoid the introduction of federal regulation and claim state regulations are adequate. If anything, they are looking for less and not more regulation. Sports gambling has taken off a pace across the United States over the past six years, but online casino gambling is still only legal in a handful of states. The industry argues that advertising is essential for guiding people to legitimate sites and finding casinos online that are approved for play in the US. The two lawmakers want to introduce legislation imposing federal regulations on online gambling.
Earlier in the month, Rep. Paul Tonko, D-N.Y., and Sen. Richard Blumenthal, D-Conn., introduced the Supporting Affordability and Fairness with Every Bet, or the SAFE Bet Act, which aims to make sports betting operators conform with minimum federal standards. It is also trying to address public health concerns that have arisen since sports betting was widely legalized.
At a press conference to launch the bill, Tonko said, “This relationship between the gambling industry and sports has reached intolerably dangerous levels, and it’s well past time for Congress to step up and make a difference,”
He added, “Now, every single solitary moment of every sporting event across the globe has become a betting opportunity, whether you’re scrolling on social media, driving down the highway past billboards, or listening to your favorite podcast or radio station, sports betting ads are there to prompt you with an endless cascade of flashy promotions.”
The US has had a strained relationship with gambling over the years. On the one hand, it is home to the self-professed gambling capital of the world. It is not only self-professed; globally, Las Vegas is recognized as a (if not the) top player in the casino and entertainment world. Atlantic City is another huge hitter, and yet, the US has also been one of the most restricted countries for gambling, particularly among Western democracies.
The country took a massive step in 2018 when the Supreme Court struck down the federal ban on sports betting on the grounds that it was unconstitutional as it undermined the power of state legislatures. Given that background, it is hard to see how a federal law on advertising will not face similar criticism. Sports betting is now legal in 38 states, and the industry posted a record $11 billion in 2023. That was up 44% from the previous year, according to the American Gaming Association’s figures.
Sports betting has brought in billions in new revenue for the states where it is legal as they charge upfront for licenses and take a slice of the profits in the form of taxation. The operators are keen to recoup their upfront expenditure on licenses and site infrastructure. Those with the deepest pockets have spent a fortune to acquire customers through advertising, promotion, and bonuses. It is not only the gambling industry itself that has befitted. The growth ripples expand much further out.
However, not everyone is happy, and there are individuals who are negatively impacted by gambling. The senators say that their proposed legislation is there to protect more vulnerable people. The industry would claim that self-exclusion and other safe gambling tools are sufficient to ensure everyone can gamble safely. However, in a recent report, “The Financial Consequences of Legalized Sports Gambling”, researchers found bankruptcy filing in states with legal betting increased by as much as 25% to 30%.
The lawmakers claim that they are not trying to ban gambling but just make it safer for the public to enjoy. They claim they want a safe recreational activity that has national standards. Blumenthal argued,
“State regulation is faint-hearted and half-baked. That’s why we need a national standard — not to ban gambling — but simply to take back control over an industry that is out of bounds. This industry is exploiting the most advanced technology to make the most money,”
The bill looks to address the key areas of advertising, affordability, and AI (Artificial Intelligence). Blumenthal said he wanted to end the use of AI tracking player’s gambling habits because the data collected is then used to tailor individual promotions, which may be hard for a gambler to resist.
It also wants to see an end to advertising during sporting events intended to make gambling irresistible and appeal to our compulsive nature. These are known as “no sweat” and bonus bets. The legislation would also limit deposits to five in a 24-hour period and calls for affordability checks by operators on customers wagering over $1,000.
The betting operators are not taking the news lying down; the industry is keen to get counterarguments across. Chris Cylke, the American Gaming Association’s senior vice president of government relations, called the bill “a slap in the face” to state regulators and gaming operators that have dedicated time and resources to developing suitable frameworks as the market evolves.
He added, “Today’s regulated sports wagering operators are contributing billions in state taxes across the US, protecting consumers from dangerous neighborhood bookies and illegal offshore websites, and working diligently with over 5,000 state and tribal regulators and other stakeholders to ensure a commitment to responsibility and positive play,”
Other lawmakers have described the bill as “unwarranted’ and “outdated”.
For the time being, all bets are off when it comes to knowing whether the lawmakers will get their way. However, it seems unlikely that a federal law will be enacted to cover casino gambling. This is because online casino gambling for real money is still only permitted in such a small number of states that federal restrictions would almost certainly be regarded as overreach and rejected on those grounds.
However, in the topsy-turvy world of US politics, it is wise to never say never.
