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The National Consumers League recently published a report in favor of banning all mobile sports betting advertisements. Subsequently, the organization supports a New Jersey bill that would do just that, prohibit mobile advertisements from sports betting operators.
Assemblyman Brian Bergen introduced Assembly Bill 5207 in January, but it has not advanced.
A statement on the legislation reads:
“This bill prohibits sports wagering licensees, and their employees, agents, and contracted operators, from posting, distributing, broadcasting, disseminating, or otherwise making viewable to the public any sports pool related advertising via the Internet or any other web-based platform, including mobile applications, and from sponsoring or financing any such advertisements in this state.
“The bill also directs the Division of Gaming Enforcement to establish such rules and undertake such legal actions as may be necessary to enforce this prohibition.”
NCL report findings
The National Consumers League (NCL) is a consumer advocacy organization dedicated to protecting and promoting social and economic justice for consumers.
In its report, the NCL outlined just how invasive advertisements from mobile sports betting apps can be on bettors, and how they can thwart states’ attempts to promote responsible gambling.
The NCL citied several other reports that show elevated rates of bankruptcy, suicide, and domestic violence due to excessive sports betting. Online advertisements, especially to cell phones, can contribute significantly to the problems.
The NCL decided to conduct its own study. In March and April, the organization compiled notifications sent from FanDuel, DraftKings, and BetMGM, per the report.
“NCL’s goal was to understand the use of mobile apps to advertise betting opportunities, including how many of the mobile apps’ notifications contained advertising material, the content of the marketing material, and whether the platforms tailored their notifications to the users’ behavior.”
The NCL found that:
- 93% of the notifications contained advertising material
- 62% of the notifications contained language urging the user to place a bet
- 50% contained promotional offers, including bonuses, bonus bets, “no sweat” bets, and odds boosts
- 28% advertised betting odds
- 15% marketed parlays
NCL Senior Public Policy Manager Eden Iscil said researchers were dismayed by the findings.
“Sports betting companies have 24/7 access to consumers through their phones, from the minute they wake up to the second they fall asleep. The use of app notifications for advertisements is an extremely invasive marketing practice that should not be normalized.
“The government regulates advertising on television, email, and text messages. But when it comes to push notifications, something that’s arguably more effective than each of those older mediums, there are no protections.”
NCL supports other movements
In addition to New Jersey’s A5207, the NCL has endorsed other proposals that would protect customers from excessive sports betting ads:
- SAFE Bet Act in the US Congress: A proposal that includes a prohibition on sports betting ads containing promotions. The bill would also ban the use of AI to create individualized offers or promotions, and it would significantly restrict the hours that sports betting companies can advertise. NCL found the apps sent 91% of their advertising notifications outside of the hours that would be permissible under the SAFE Bet Act.
- Regulating Addictive Notifications Act in the New York State Senate: A proposal that would prohibit the use of push notifications or text messages for the solicitation of sports wagers.
