The Massachusetts Gaming Commission has approved a series of sports betting rule changes that will see a ban on certain types of marketing come into force from April 14th.
In an open meeting, the Gaming Commission finalized its regulations with regard to sports betting advertising and marketing. The new rules mandate sports betting firms to use every possible targeted measure to prevent individuals under 21 from being exposed to their advertising and marketing on social media and related TV platforms such as Hulu or YouTube TV.
These regulations also prohibit operators from paying spokespeople to encourage bettors to place a certain type or quantity of wager. They also mandate that paid social media influencers and other endorsers disclose payments they receive from betting firms, and necessitate the provision of “clear and prominent” options for people to decline direct advertising, marketing, or promotional materials.
During the meeting, the commission paid very close attention to third-party affiliate marketing. The governor’s office had previously requested that the commission fully reinstate a ban on agreements “dependent on, or related to, the volume of patrons or wagers placed, or the outcome of wagers.” However, the commission instead adopted what members referred to as a compromise.
When the new sports betting advertising regulations take full effect on April 14th, companies will not be allowed to enter into marketing agreements “in exchange for a percentage of net sports wagering revenue earned from users that the third party directs or causes to be directed to the Operator.”
Mina Makarious, an attorney at Anderson & Kreiger who has been working with the commission to write sports betting regulations, explained:
“You would be prohibiting revenue sharing based on a percentage of revenue where it’s a particular user tied to a particular marketing affiliate. You would not ban general revenue sharing, a sort of rising-tide-lifts-all-boats kind of revenue sharing, or flat fee payments, in a sense.”
Although Chairperson Cathy Judd-Stein expressed concerns that the language may impede smaller and less-established marketing affiliates from competing with larger entities, the language was approved unanimously.
Sports betting in Massachusetts officially launched on January 31st when retail sportsbooks accepted the first wagers. Mobile sports betting then launched on March 10th.
An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.