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Just one year ago, online sports betting launched in New York
State. Throughout 2022, New York set sports gambling tax revenue
records, outperforming every other state in the Nation. According
to Governor
Kathy Hochul, New York generated an unprecedented $73 million
in mobile sports wagering tax revenue during the month of
September, 2022 alone. Furthermore, the State collected $542
million in taxes through the week ending October 30, 2022. Add to
that amount an additional $200 million that was collected in
licensing fees, and you have a huge revenue generator. With this
budding industry comes the potentially lucrative opportunity for
marketing companies to engage in New York State-targeted gambling
advertising. But before embarking on any new marketing campaign,
especially where mobile sports gambling only recently became legal,
it is important to consult with an experienced New York gambling
advertising
attorney to ensure compliance with applicable regulations.
New Legislation Impacting New York-based Gambling Advertising
Efforts
As the interest in sports gambling continues to break records in
New York, it appears that legislators are looking for ways to
safeguard the best interests of State residents. Just last week,
two New York Senators, Luis R. Sepúlveda and Leroy Comrie,
introduced Senate
Bill 1550, which would require all advertisements to include
warnings about the potential harmful and addictive effects of
gambling. Specifically, the Bill
would amend the racing, pari-mutuel wagering and breeding law with
respect to all advertisements for gambling and sports betting. The
new measure would require such advertising to include warnings
about potential harmful and addictive effects of gambling. It would
also require the State Gaming Commission to cooperate with the New
York State Office of Addiction Services and Supports
(“OASAS”) to ensure that all advertisements for gaming
activity include a problem gambling hotline number. Such postings
would also need to include information explaining how individuals
may add their names to the list of self-excluded persons. Please
note that the Bill would take effect on the 60th day
after it becomes law.
Revenue from New York Gambling Benefits State Residents
According to the Governor’s
Office, the revenue from legalization of online sports betting
in New York benefits educational initiatives, including efforts to
help citizens with gambling addiction. OASAS Commissioner, Chinazo
Cunningham, explained that, “OASAS stands
ready with services and supports for New Yorkers struggling with
problem gambling. This additional revenue from mobile sports
wagering will allow OASAS to expand important prevention,
treatment, harm reduction and recovery services across the
State.” Whether or not the Bill is passed into law, it should
be clear that any New York-based gambling advertising campaign
should include gambling addiction notices.
How to Ensure Your New York-based Gambling Advertising Campaign
is Compliant
While the Bill is still in the early stages in the legislative
process, the measure is likely to pass in one form or another.
Therefore, companies should start reviewing their New York-based
gambling advertising campaigns for future revision. With the
potential new law in mind, businesses hoping to
enter the New York sports gambling market should take
extra precautions before setting up their marketing campaigns.
Complying with advertising regulations may appear simple at first
glance. However, as many companies have learned over the years,
this is anything but the case.
As such, businesses should seek counsel before running any New
York-based gambling advertising promotion to avoid potential social
media, regulatory and legal challenges.
Related Blog Posts:
Sports Gambling Marketing’s New Market: Ohio!
Facebook Sets Restrictions on Online Gambling Ads
Once Upon A Federal Sports Gambling Bill
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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