One doesn't have to look far to see that sports betting is now legal in much of the country. Turn on just about any sporting event (even in states that haven't yet become legal in a post-Murphy universe), you're likely to see sports betting advertising. Of course, this isn't America's first rodeo with the ubiquity of gambling or gambling-adjacent ads. The daily fantasy sports hype blitz of 2015 stands out as probably the most prominent example.

In an episode of deja vu again, it seems the industry is going down a very similar path to the 2015 experience. Ad spending in 2015 undoubtedly contributed to daily fantasy companies facing increased scrutiny from regulators, and current sports betting spending is likely to have a similar result. The simple solution would be for everyone in the industry to tone it down, be very careful with promotions, make sure that each promotion has clear terms and is only directed at the people who should receive the information. But that seems unlikely to happen. Fines for sports betting ads are here In response to violations of state (and provincial) regulations, some states have penalized carriers for failing to comply with advertising regulations. An example would be sending promotional materials to excluded or prohibited persons.

There has been a significant disparity in the fines imposed. They range from four figures, which seems unlikely to have much of a deterrent effect, to six-figure penalties, with Ohio and Ontario apparently being the most aggressive in slapping wrists. But, at the end of the day, we keep seeing violations over and over again.

Do the fines matter?

With businesses receiving fines in all jurisdictions, the question is: do the fines have any effect? It appeared that Massachusetts was taking a close look at the behavior and penalties of companies in other jurisdictions. At the end of the day, state regulators still approved even the companies they vetted the most, if only temporarily.

Is it the same everywhere?

Stripping a license or authorization to operate is extreme. Even the UK, which has much more experience regulating sports betting and stricter regulations related to advertising, has avoided extreme punishment. While it's unclear what recommendations will come if the UK white paper detailing a suggested advertising overhaul is published, if the North American market continues on its current path, they are likely to face calls for intervention as well. The elephant in the room in sports betting advertising In the US, the First Amendment presents a challenge to regulators seeking to control sports betting advertising. But while the First Amendment might remove a blanket ban from the table, it doesn't present a blanket ban for custom restrictions.

The Supreme Court struck down restrictions on gambling advertising that went too far, but the government still has some pretty significant leeway to restrict commercial speech, as long as:

The first step is to establish that the speech is legal, the illegal speech is not protected; Advance a government interest; and, Be closely tailored to the promotion of that government interest.

How decisions are translated into states

What this translates to is a significant ability to control certain types of advertising. At the state level, regulators may have even greater authority to impose restrictions given the permissive nature of sports betting licences. We already see state regulators imposing various requirements around sports betting advertising and penalties for violations. Through the licensing process, states may have more ability to impose advertising restrictions than the federal government. While the First Amendment will mean that there likely won't be a federal ban on sports betting advertising in the future, it doesn't rule out the possibility that the federal government might try to regulate sports betting. The reality is that states could probably (without even addressing the federal issues of doing anything) much more easily come up with stricter guidelines around advertising to better protect vulnerable groups.

Alcohol and tobacco as an advertising model for sports betting?

While many in the gaming industry cringe at comparisons to the alcohol industry, and even more so to the tobacco industry, it is unlikely that lawmakers would have serious qualms about treating gambling in a similar way to how gambling is restricted. publicity, in case there is finally a legislative consensus.

Many restrictions on tobacco advertising have come about as a result of most states signing the master settlement agreement with the tobacco companies, which, as one of the terms, caused the companies to agree to significant restrictions on advertising. The Federal Trade Commission (FTC) has fairly broad power to control advertising it deems unfair or misleading, which, as former commissioner Roscoe Starek III described in 1997, “an unfair act