New York Lawmaker Wants Retail Gambling Ad Rules Extended to Online Sportsbooks

A proposed law in New York would prohibit online sportsbook advertisements, such as this Caesars Sportsbook ad on a city bus, from promising free money or “risk-free” wagers. (Image: Ira Berger / Alamy)

A New York legislator has introduced a bill that would extend restrictions on advertising for retail gambling businesses to online sports betting in an effort to promote responsible gambling throughout the state’s gaming industry. 

The legislation, known as Assembly Bill A10658, was introduced by Assemblyman Clyde Vanel (D-Queens) on July 22. 

Bill Requires Helpline Number, Prevents Showing Underage Gambling

The bill, which was referred to the Assembly’s Racing and Wagering Committee, would make a simple update to the New York Racing, Pari-Mutuel Wagering, and Breeding Law. It would add the term “mobile sports wagering licensee” alongside “gaming facility licensee,” subjecting both types of licensed operators to the same advertising regulations.

The rules that apply to casinos and racetracks in New York still allow for a wide range of advertisements. However, these ads cannot show anyone under the age of 21 taking part in gambling. All ads must also be factual, cannot mislead customers, and must make any relevant conditions to promotions clearly stated.

Perhaps most importantly, ads are required to include a phone number for a problem gambling helpline, along with the name of the facility being advertised. 

Operators Face Lawsuits Over Allegedly Misleading Ads

How exactly gambling companies should be allowed to advertise has been a hot topic in New York and nationally over the last year. In October, the New York State Gaming Commission made updates to its regulations for sportsbook advertising, eliminating the ability for operators to use terms like “free,” “free of risk,” or “risk-free” when marketing their sites.

Those rules came into play after several lawsuits were filed in New York and other locales after individuals claimed they were duped by the language in such ads. 

In April, plaintiff Samantha Guery launched a federal class action lawsuit against DraftKings in the Southern District of New York, claiming that promotions from the company suggested that new players didn’t have to spend any money on their first bet. In reality, the promotion – like most of the “risk-free” type – would only return a free bet credit if players lost their initial wager. 

Similar lawsuits were filed in 2023 against BetMGM and Caesars Sportsbook in New York, as well as against DraftKings in Massachusetts. As far back as 2022, a lawsuit was filed against PointsBet in Colorado alleging similar misleading language. 

As a result, most gaming operators have moved away from using such language in advertisements already, either because of regulatory rules in many states, or simply to avoid further legal action. 

With Vanel’s bill only bringing online sportsbooks in line with their brick-and-mortar counterparts, and the regulations seemingly being reasonable – many ads likely already conform to the rules as written – it would seem as though the regulations should pass without much controversy. 

However, there are plenty of other areas where the legislature’s impact on the state’s gaming industry is far more contentious. For instance, lawmakers passed an accelerated timeline for the process of awarding licenses for three downstate casinos, something on which the state’s Gaming Facility Location Board later pushed back.