In the wake of Ohio gaming regulators submitting a formal rule change for stricter advertising guidelines aimed at Fanatics, Massachusetts seems to be following suit.
Any rule change appears to be in the discussion phase of the process, and nothing has been formally submitted yet. Still, Massachusetts has a history of being strict on advertising regulations. Expecting Massachusetts regulators to follow through with a rule change would be a safe bet.
Fanatics has struggled to establish a substantial hold in the Massachusetts sports betting market, and new advertising rules would likely further reduce its market share.
Massachusetts regulators take note of new Ohio sportsbook advertising rule draft
The Massachusetts Gaming Commission is discussing a new rule aimed at banning gambling promotions through non-gaming methods. As is the case in Ohio, this new rule is directed at Fanatics, which operates a massive global sports merchandising company in addition to its sportsbook.
This idea of banning sportsbook marketing on a brand’s non-gaming outlets was most recently discussed at a Massachusetts Gaming Commission on Tuesday, April 30. But conversations go back as far as last summer.
The type of promotion that is pushing regulators to act is Fanatics offering bonus bets in the total amount spent on its merchandise. In Ohio, regulators claimed it was a promotion that could appeal to people under 21 years old and found fault with the lack of ability to opt out of the advertising. That led to the Ohio Casino Control Commission officially submitting a rule change, which was more of an addition than an alteration.
The new Ohio sportsbook advertising rule reads like this:
“Sports gaming proprietors must not offer a promotion or bonus in connection with or as a result of a non-gaming, consumer transaction.”
In Massachusetts, where gambling advertising regulation is known to be very strict, it seems likely that a similar rule will be added eventually. Right now, Commissioners are waiting for the exact writing of the rule change, and they want to receive input from operators before moving forward with a formal rule change submission.
Massachusetts is known for strict advertising regulations, making a rule change likely
Massachusetts has always been on the cutting edge of strict advertising regulations.
In an effort to keep young adults from being overexposed to a potentially addicting hobby, Massachusetts became the first state to ban gambling partnerships between operators and colleges or universities. Additionally, the Bay State does not allow gambling advertising at any venue where more than 75% of the attendees are expected to be under the legal gambling age of 21 years old. In sports arenas, gambling promotions are forced to have ‘21+’ notated on any visible advertisement.
Along with being proactive and strict with advertising rules, regulators recently heard a Massachusetts sportsbook advertising study calling into question how effective such marketing really is — especially considering the amount of money spent.
Study questions how effective sportsbook advertising really is
The study heard by the Massachusetts Gaming Commission was presented by Dr. Rachel Volberg and was funded by the SEIGMA at the School of Public Health and Health Sciences at the University of Massachusetts Amherst.
A section within its contents questioned advertising’s true impact on sports bettors. The report stated that only 7.1% of respondents felt advertising led them to gamble more often:
“With respect to the impacts of gambling advertising, online a small proportion of online panelists in Massachusetts in 2023 (7.1%) felt that such advertising or news coverage had caused them to gamble more.”
Additionally, 15.1% of respondents claimed that the constant advertisements actually cause them to gamble less often. Overall, 77.8% of all panelists said they do not believe promotions from operators had any impact on them.
At the same time, national television advertisement spending has increased by 1,300% from 2019 to 2022 to $314.6 million. The online marketing budget in 2022 massively dwarfs that figure, with $1.8 billion being spent nationally.
In addition to advertising’s seemingly lackluster impact, the study also pointed out the negative benefits of such a massive increase in gambling propaganda:
“Based on the research, it is clear that advertising has substantial impacts on attitudes toward and consumption of addictive products, including gambling. Advertising of these products generally emphasizes the positive experiences of use while downplaying the potentially negative aspects.”
“The recent and rapid shift in advertising to digital channels and the evolutions of highly targeted approaches to individual consumers raises further concerns about the potential negative effects of widespread gambling advertising.”
Massachusetts regulators have shown a willingness to expand advertising regulations after hearing new information on the impact of gambling promotions. With Ohio now taking definitive action against Fanatics’ marketing practices, it seems likely that Massachusetts will follow suit.
