In a significant regulatory update, New York’s stance on sports betting has seen substantial revisions as of October, taking into consideration various perspectives, including input from industry major players like FanDuel, owned by Flutter Entertainment. As the new rules take effect, a strict prohibition on advertising close to educational establishments has been instituted. Nevertheless, documents from the state registrar expose FanDuel’s resistance to such regulations.
A specific document, dated October 18, illustrates FanDuel’s contention against an outright ban on advertising in proximity to college or university campuses. FanDuel argued this could encompass areas adjacent to a campus without direct affiliation, including residential and commercial zones.
Contradicting FanDuel’s stance, the New York State Gaming Commission maintained that ads situated near educational institutions could be perceived as objectionable marketing strategies. The Commission defended the ban as a necessary step to prevent opportunistic marketing to underage individuals.
This issue was merely one of a slew of regulations met with scrutiny by FanDuel. The sports betting operator also expressed its dissension to a range of measures presented in October.
One focal area of disagreement was the requirement for compulsive-play-assistance messages within advertisements. According to FanDuel, embedding such messages should be limited to its website, arguing that ad space was too valuable to allocate to these messages and that such changes in New York would mandate consequent marketing adjustments in other states.
In response, the Commission held that enforcing such messages in ads was congruent with state law, and that betting ads within New York must be regulated with diligence.
Another contested measure by FanDuel targeted the accountability operators must bear for misleading statements made by affiliates marketing their services. The Gaming Commission stood firmly behind its directive, underscoring that operators should have the capacity to control the messaging from their affiliates effectively.
FanDuel raised concerns about the practicality of preventing the use of certain keywords that might appeal to problem gamblers. The betting operator equated this with liquor stores being prohibited from advertising to potential alcoholics and proposed that the restriction be applied solely to individuals already identified as problem gamblers.
Again, the Gaming Commission opposed FanDuel’s viewpoint, advocating for the removal of potentially triggering phrases from website keywords, thereby steering clear of misleading problem gamblers seeking assistance.
On the subject of daily fantasy sports (DFS), FanDuel contested the classification of DFS as sports betting and the liability placed on operators for allowing ineligible individuals to participate. The Gaming Commission asserted that enforcing responsibility among licensees was appropriate but assured that each case would still be assessed on its individual merits.
Additional points of contention involved the request for an independent laboratory to verify the conformity of platforms to set standards. FanDuel opposed this, yet the Commission argued that it was a critical step to uphold public trust in the integrity of sports betting systems.
FanDuel had also suggested the removal, or at the very least, an annual review of anti-money-laundering procedures, an appeal that was denied by the Commission.
Coinciding with the publication of these discussions, FanDuel secured the leading position in the New York online sports betting market yet again. Dominating November’s figures, FanDuel recorded a handle of $923.4 million with revenues topping $69.2 million. New York itself broke records with an all-time high of $2.11 billion placed on online sports bets in a single month, although the revenue of $150.9 million for November fell slightly behind the October record.
The recent developments reflect the evolving landscape of betting regulations and the ongoing dialogue between operators and regulators. As the New York market continues to mature, these conversations are likely to shape the future of sports betting advertising and responsible gaming practices in the state.
