Federal lawmakers set to debate potential industry-crippling sportsbook ads ban

A new bill which could see a federal ban on sports betting advertising on TV, radio, and the internet across the US has been introduced into the US House of Representatives.

Introduced by New York Representative Paul Tonko, the Betting On Our Future Act (BOFA) treats sports betting advertisements in the same way as cigarette advertising in the US.

Under BOFA, all sports betting advertisements under the jurisdiction of the Federal Communications Commission (FCC), inclusive of TV, radio, and online advertising would be banned in the US.

This would leave US sportsbook operators with just mail, print media, and billboard advertising, something which could fundamentally reshape marketing and business practices for the entire industry.

BOFA is modelled on the Federal Cigarette Labeling and Advertising Act, which banned tobacco advertisements across the US in 1965.

In an accompanying fact sheet provided with BOFA, Tonko called on Federal authorities to act to prevent escalating harm from the expansion of sports betting across the US.

“Sports betting advertisements are out of control. Congress needs to reel in an industry with the power to inflict real, widespread harm on the American people,” Tonko said.

Tonko’s justification, included in the fact sheet, cites statistics including an estimated seven million problem gamblers across the US as well as a 45% year-on-year increase in calls to the National Problem Gambling Helpline Network in 2021.

Similar to the language used in a New York State effort to clamp down on sportsbook advertising, Tonko suggested advertising had become “predatory” in nature.

“With the widespread adoption of online sports betting, gambling is now accessible with the click of a button, and sports betting companies are using a variety of predatory tactics such as massive promotions and ‘risk free’ or ‘no sweat’ bets to gain and retain new customers,” he said.

Tonko’s native New York hit the headlines following its launch of online sportsbooks in January 2022, with the Empire State playing host to a massive promotional blitz by operators looking to obtain market share to balance out the state’s 51% tax rate on sportsbook revenue.

US market leader FanDuel ended usage of these terms in its advertising in July, with many operators choosing to follow suit amid a rising tide of anti-gambling sentiment which has only grown over the last 12 months.

New jurisdictions including Massachusetts, Ohio, and Maine have all toyed with or are in the process of imposing significant scrutiny on operator advertising, with many operators already facing fines.

The BOFA fact sheet singles out DraftKings for its $500m marketing spend in the US in 2020, a figure which has since been surpassed many times by the firm, including in Q3 2022 when it spent $584m on marketing.

However, DraftKings has committed to wiping as much as $100m from its marketing spend, shifting its focus away from local marketing to national ads, something which could change if BOFA is introduced.