Congressman wants sports betting ads taken off the airwaves

In the nearly five years since the Supreme Court passed the Professional and Amateur Sports Protection Act of 1992 (PASPA), one question remains unanswered - whether the federal government will get involved in regulating the sports betting industry. On Thursday, a veteran congressman called for restrictions on sports betting advertisements.

U.S. Rep. Paul Tonko, D-NY, said in a statement that Washington should take action because sports betting ads lure people - especially teens and young adults. That's why he filed the Betting on Our Future Act bill.

According to the bill, Tonko wants to "prohibit sports betting advertisements on any medium electronically under the jurisdiction of the Federal Communications Commission." A fact sheet prepared by his office says that it includes television and radio ads, as well as Internet advertising.

Impact concerns

Sports betting is currently legal in 36 states and active in 33. Mobile betting is available in 23 states.

Late last year, the New York Times published an exposé of some of the methods used by sports bettors to promote their brands and attract new customers. 

Specifically, they partnered with educational institutions such as the University of Colorado, Louisiana State University, and Michigan State University.

According to Tonko, it's not just college students who are at risk. He believes that flashy advertisements featuring celebrities and former athletes make sports betting attractive to an even younger audience.

In most states, the minimum age to bet on sporting events is 21. However, in some of them, bets can be placed by those under the age of 18.

Tonko cited statistics from the International Center on Gambling and Youth Risk Behavior, which found that up to 80 percent of high school students have bet real money on gambling.

Tonko believes that operators are using predatory tactics

Regulated sports betting has become big business across the country in a relatively short period of time. According to the American Gaming Association, in the first 11 months of 2022, gross gaming revenue for sports betting operators, both online and retail, totaled more than $6.5 billion. This represents a 65.4% increase over the same period in 2021.

In states where online betting is allowed, the vast majority of revenue is generated through mobile apps and websites.

With the proliferation of sports betting across the country, calls for help have also increased. The Tonko newsletter notes that the National Gambling Helpline Network received 270,000 calls in 2021, a 45% increase over the previous year.

The congressman accused sports betting operators of using predatory tactics in an attempt to attract new customers to their apps and websites. He added that the Super Bowl broadcast will be a big deal for sports bettors.

"In between the game, tens of millions of people will be bombarded with ads from DraftKings, FanDuel, and other companies promising so-called 'risk-free' or 'win-win' bets in their ruthless effort to attract new customers to their products," Tonko said. 

In addition, users regularly receive advertisements about the best iPhone casino apps, promotions, and other gambling-related products on Instagram and other social media sites.

According to a BIA Advisory Services forecast last August, online gambling operators are expected to spend $1.8 billion on native advertising in 2022. That's more than 60% of all advertising spending by these companies.

BetMGM, Caesars, DraftKings, and FanDuel - the four largest operators in the U.S. - also utilize national advertising. 

Commercials featuring the Manning family, Jamie Foxx, Kevin Hart, and Rob Gronkowski are aired during most broadcasts of major sporting events.

Analysis: Does the bill have a chance?

During the biennial sessions of Congress, lawmakers introduce thousands of bills. Very few of these bills actually make it through the legislative process and become law. Often, filing a bill is a way to show that they take a stand on an issue and want it to get more attention.

If this happens, expect a major backlash from operators and the American Gaming Association (AGA). Any moves to restrict or regulate advertising will almost certainly meet resistance, especially since the AGA has repeatedly called on Washington to do more to combat offshore bookmakers and illegal gaming operators.

The bill could also signal the industry to be more proactive and engage in self-policing. 

Some, such as FanDuel, which has refused to use the phrase "risk-free," have already taken steps. But it is clear that additional measures are needed.