New Jersey lawmakers are pushing for a study on gambling ad wording to promote responsible betting and reduce underage exposure.
Assemblyman Clinton Calabrese and Assemblywoman Garnet Hall’s Bill A5562 was approved in the Assembly Tourism, Gaming and the Arts Committee last week. Then on Monday, Sen. John McKeon and Sen. Renee Burgess’ S4366 introduced a companion piece to a committee in the Senate.
S4366 aims to limit gambling companies’ advertising reach, in particular relating to young people. If passed, it would lead to a ban on gambling ads near schools and colleges and prohibit ads that are viewed as targeting people under 21. The proposed legislation is a softer approach after a bill that aimed to ban all online and mobile betting ads has made no progress since its introduction in January.
The state has been making other moves to address the problem of underage gambling and is launching a gambling awareness program in high schools through Rush Street Interactive and Integrity Compliance 360.
Study to publish list of approved phrases
If passed, the bills would lead to a study by the Division of Gaming Enforcement (DGE) to determine “the effectiveness of various words and phrases” used in online casino and sportsbook advertisements.
New Jersey online casinos generated a record $2.4 billion in revenue last year, but unregulated casino operators also generated $1.5 billion. As well as policing legal gambling companies, the study aims to reduce the spread of illegal gaming.
Bill S4366’s stated aim is to “deter illegal or irresponsible gambling, challenge perceptions of gambling and encourage the use of responsible gambling tools.”
The study by the DGE would analyse which specific words and phrases encourage responsible gambling and create a list of 3-10 approved phrases for use in gambling ads. They would also investigate how font size, placement, and repetition affect gamblers.
Advertising in gambling
A US survey by Pew Research Center found that 60% of adults report seeing gambling ads “very often”. In the UK, the Gambling Commission also conducted a study about ads targeting young people and found that 34% 11–16 year-olds had seen gambling ads online in the past week.
Other states have placed similar restrictions on gambling operators’ advertising practices. In New York, gambling ads cannot be placed in media that is mainly consumed by under-21-year-olds.
Massachusetts and Ohio also have rules around the terms companies can use. For example, “risk-free” or “free bet” cannot be used if the bettor’s money is not returned in real cash. Many casino bonuses include rollover requirements, but Ohio dictates that these must be shown prominently, instead of hidden in terms and conditions.
Betting companies spend a large part of their budget on running promotions and advertising. It is estimated that operators splurged $1.8 billion on advertising in 2023.
The Responsible Gambling Council noted the effectiveness of advertising in gambling, stating, “Advertising works — that’s why operators spend millions on it. But with great power comes great responsibility.”