Responsible Marketing Code for Sports Wagering: What Does it Mean?

Sports betting has become one of the most popular subjects in the past year since the Supreme Court ruling to lift the federal ban. Over a dozen states and Washington D.C. have now brought some form of legalized sports betting to their residents. Not only that, but we are also seeing a number of media giants dipping into the sports betting market via partnerships with gambling entities. With the booming sports betting industry now making its way to mainstream media, such as ESPN, some are concerned about the impact that this could have on the public.

Casinos Agree to Responsible Marketing

Last month casinos in the United States agreed to a code of conduct for responsible sports betting marketing. All members of the American Gaming Association are required to abide by this code of conduct that is geared towards keeping advertisements away from children. So don’t expect to see any commercials featuring SpongeBob SquarePants placing a bet on the Patriots to win the Super Bowl.

Sara Slane, senior vice president of public affairs for the AGA, said the goal was for them to get ahead of the curve. Slane said that the code is influenced by measures that are being implemented by industry groups that represent other adult-oriented products and services. Members of the Beer Institute and the Distilled Spirits Council of the United States follow strict codes that ban them from advertising inappropriate consumption and violating any laws. These groups operate a compliance review board that addresses complaints in relation to alcohol advertisements. The AGA will be adopting a similar procedure that creates an internal review process that will determine whether or not gambling advertisements comply with the responsible marketing agreement.

Back in 2015, when Daily Fantasy Sports were at their peak, DraftKings and FanDuel spent more than $305 million on more than 80,000 ads that year, according to iSpot.tv. The following year, DraftKings and FanDuel each paid $6 million as a settlement after the state of New York sued them for misleading consumers through advertisements. Slane said that this new marketing code will help sports betting operators avoid similar scenarios.

What is the AGA?

The American Gaming Association (AGA) represents the casino industry in the U.S., including commercial and tribal casino operators, suppliers, destination marketing organizations, food and beverage suppliers, and other key stakeholders in the gaming industry. The AGA mission statement is, “We achieve sound policies and smart regulations that promote innovation and are consistent with gaming’s modern appeal and vast economic contributions.”

“As the premier national trade group for the U.S. casino industry, the American Gaming Association advocates for a favorable policy environment in which gaming can thrive. We do this by highlighting gaming’s positive economic and social impact with key stakeholders.” – AmericanGaming.org

Due to the new nature of legalized sports betting, the AGA is extending its compliance commitments to address any concerns that may arise with it.

What is in This Agreement?

According to the AGA, sports wagering is an entertainment activity that should be consumed only by responsible adults and marketed accordingly to that audience. When AGA members market and advertise real-money sports wagering services, they commit that their advertising and marketing content will meet the following standards.

The “Responsible Marketing Code for Sports Wagering” can be broken down to four major categories:

– Respecting the Legal Age for Sports Wagering

– Supporting Responsible Gaming

– Controlling Digital Media and Websites

– Monitoring Code Compliance

What The AGA Has to Say

We reached out to the AGA with a few questions:

1. Do all casinos/operators have to join the AGA, if not, are there any consequences to not joining?

2. What authority does the AGA have over casino/operators that choose to join?

3. What authority does the AGA have over casino/operators that choose not to join?

4. Does the AGA take legal action over casinos/operators that are not compliant or do they recommend legal action to authorities?

AGA’s Vice President of Strategic Communications Casey Clark responded in kind,

“Membership in the American Gaming Association is open to commercial and tribal casino operators and gaming suppliers, in addition to other ally members, on a voluntary basis. AGA’s Responsible Marketing Code for Sports Wagering was developed in consultation and collaboration with AGA member companies over the past for 6-8 months and extends members’ longstanding commitment to responsibility through AGA’s Responsible Gaming Code of Conduct.

“This Code is a first step towards extending the gaming industry’s commitment to responsible gaming, and every stakeholder involved in this new sector shares this responsibility. That includes media organizations, sports franchises, leagues, and others, and AGA has spent years educating them on this and other aspects of legal sports betting. By setting the bar for sports betting advertising, the Code will help distinguish between responsible operators and irresponsible ones. There’s still work to do, but our hope is that our partners in these adjacent industries adhere to the same high standard that AGA members do.

The core tenets of AGA’s Responsible Code for Sports Marketing were developed in close collaboration with AGA’s membership. The next step in this deliberate process is to continue that good work in the creation of code compliance processes and enforcement mechanisms.

Other highly regulated industries have successfully developed and implemented similar self-regulations, and our process was informed by them. One of those is the Distilled Spirits Council, whose code has been in place since prohibition and is widely viewed by regulators and other influencers as the model for self-regulation. Their code enforcement mechanisms include the ability for anyone to raise potential compliance issues, for advertisers to respond, and ultimately for the public reporting of that process. We’ll continue to use their success as a guide as we finalize a code that works for our industry.

AGA’s code extends the significant commitments gaming companies make to responsible gaming, setting a standard for everyone to raise to, and separating good actors from bad. ”

My Thoughts

I believe the Responsible Marketing Code for Sports Wagering could have legs if properly implemented. The AGA is approaching this from the right direction and they understand what’s at stake. This a historic time in US history and it’s important to establish regulations that protect consumers. This is a step in the right direction and I believe an open dialogue and transparency in these matters is key to establishing trust. Businesses should be held accountable publicly when they go out of bounds and if the AGA can successfully mediate self-regulation, I’m all for it. We will all be following the progress of these initiatives and look forward to seeing how they play out.