New York’s gambling bill comes at a vital time. The state’s sports betting tax revenue reached $861.8 million in 2023, up from $746 million in 2022. These numbers show why the state now focuses more on responsible betting practices.
Governor Kathy Hochul’s signature on legislation S1550/A1118 represents a major change in gambling advertising rules. The bill moves beyond just showing problem gambling hotline numbers and now includes mobile sports wagering advertisements. Problem gambling often becomes a hidden addiction that harms people’s finances, emotions, and social connections. The new legislation protects New Yorkers by requiring clear warnings about what gambling can do to people in all betting advertisements.
New York Mandates Warning Labels on Betting Ads
New York has expanded its gambling advertising regulations. The new rules require all gambling-related ads, including mobile sports wagering, to show clear warnings about gambling’s harmful and addictive nature. The New York State Gaming Commission will collaborate with the Commissioner of Addiction Services and Supports to implement these warning requirements properly.
Operators must follow these specific advertising guidelines:
- Problem gambling assistance messages need clear display in ads
- Warning labels should meet specific size and readability standards
- Age restrictions must appear on social media pages and websites
- Problem gambling hotline numbers should be visible on all gaming content
The new rules also ban ads that promote risky gambling behavior or hint that betting can bring financial success. Companies can’t label sports wagering as “free” or “risk-free” when players must use their own money.
The law requires gambling companies to provide access to the New York State HOPEline. This support service runs around the clock, every day of the year. People can get free, confidential help in seven languages: English, Spanish, Bengali, Traditional Chinese, Haitian-Creole, Korean, and Russian. During the first half of 2024, the hotline received 777 contacts through calls and texts.
The Gaming Commission and OASAS will watch over advertising compliance to make sure operators follow these new rules. This oversight helps protect New Yorkers while supporting the state’s strong gaming industry.
How Will Companies Implement These Changes?
The new guidelines require gambling operators to keep detailed records of their advertising materials for five years. These records must show exactly when and how they displayed each advertisement. The New York State Gaming Commission will work together with operators to properly implement these requirements.
The implementation timeline requires operators to update their advertising systems with:
- Age verification tools that target people 25 and older
- Automated monitoring systems to track compliance
- Problem gambling messages on all platforms
Before launching any advertising campaigns, operators must complete a full risk assessment. Companies need to use technology tools with age-gating features and targeted ad placements to protect underage audiences.
The new regulations mandate that operators devote 20% of their gambling messages to promote safer gambling. Automated systems and regular audits help the Gaming Commission monitor compliance. Companies that fail to meet these standards face consequences from written warnings to losing their license, plus civil penalties up to $25,000.
The American Gaming Association’s 5-year old review process requires members to review promotional messages every three months for compliance. This framework makes operators train all marketing employees on advertising guidelines.
Industry Leaders React to Regulatory Shift
U.S. gambling advertising hit record levels as companies spent $1.80 billion in local markets last year. This surge raised red flags among regulators about the overwhelming presence of sports betting ads.
The gambling industry took steps to tackle these concerns head-on. The American Gaming Association updated its responsible marketing code. We banned terms like ‘risk-free’ bets and stopped marketing partnerships with colleges. Major operators received hefty penalties, and Ohio’s casino control commission slapped over $800,000 in fines on sports betting companies since January.
DraftKings admitted breaking rules by promoting ‘free’ bets and accidentally sending ads to 2,582 underage residents. These events pushed the industry toward tighter self-regulation.
Professional sports leagues and TV networks created the Coalition for Responsible Sports Betting Advertising. Sports betting ads should target adults of legal betting age only, according to the coalition’s guidelines.
The industry’s green practices show positive results in financial performance. FanDuel leads the market by spending over $1 billion yearly on marketing and holding 40% of the U.S. market share. DraftKings spent $197.50 million on advertising during Q2 of 2023.
Conclusion
New York’s gambling industry has grown remarkably and generated $861.8 million in tax revenue in 2023. The state’s new legislation comes at a perfect time to balance revenue potential with public safety. The state shows its steadfast dedication to protecting residents through complete requirements for warning labels and problem gambling resources.
Gambling operators must now follow strict implementation guidelines. These include keeping records for five years and conducting mandatory risk assessments. The industry’s response looks promising as major platforms adjust their practices. They have accepted accountability through self-regulation measures.
These changes show a fundamental change in sports betting advertising approaches. The Gaming Commission works with addiction services and operators to create a framework. This framework supports industry growth and public welfare together. New York leads by example and proves that responsible gambling practices can work alongside profitable operations.
FAQs
Q1. What are the new requirements for sports betting advertisements in New York?
New York now requires all gambling-related advertisements, including mobile sports wagering, to display clear warnings about gambling’s potential harmful effects. Ads must include problem gambling assistance messages, meet size and legibility requirements, and feature the state’s problem gambling hotline.
Q2. How will gambling operators implement these new advertising regulations?
Operators must update their advertising systems to include age verification tools, automated compliance monitoring, and integration of problem gambling messaging across all platforms. They are required to conduct risk assessments before launching ad campaigns and dedicate at least 20% of their messaging to promote safer gambling practices.
Q3. What penalties do companies face for non-compliance with the new regulations?
Companies failing to meet the new requirements face penalties ranging from written reprimands to license revocation. They may also incur civil penalties of up to $25,000 for violations of the advertising guidelines.
Q4. How has the gambling industry responded to these regulatory changes?
The industry has taken steps to address concerns, including revising responsible marketing codes, banning terms like ‘risk-free’ bets, and prohibiting marketing partnerships with colleges. Major operators have faced penalties for violations and have committed to stricter self-regulation.
Q5. What impact has sports betting had on New York’s tax revenue?
New York generated $861.8 million in tax revenue from sports betting in 2023, up from $746 million in 2022. This significant increase highlights the growing importance of the sports betting industry in the state and the need for responsible gambling practices.
