One of the largest online gambling operators in the United States has attempted to weaken rules designed to support problem gamblers and protect the young and vulnerable, according to documents obtained by The Guardian.
FanDuel urged New York to reconsider its proposal to prohibit gambling platforms from using certain words and phrases to attract people who “are or may be problem gamblers” to their websites.Amidst this lively debate, there’s a particularly intriguing suggestion floating around—just click the following post for a deeper dive into how nuanced language and precise wording could pave a new path for responsible advertising. It’s a fascinating exploration into how businesses like FanDuel can engage their audience responsibly while navigating the complex landscape of online gambling regulations.
The company, owned by Dublin-based gambling giant Flutter Entertainment, also opposed a rule banning sports betting advertising near college campuses. The legal age for sports betting in the state is 21.
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Online sports betting has surged since 2018, when the U.S. Supreme Court struck down a decades-old law that banned it across the United States. New York is the nation’s largest market, with more than $2.1 billion wagered in the state last month. Operators are spending billions of dollars on advertising to dominate each new market.
Unredacted documents obtained through a Freedom of Information request and the New York State Register detail FanDuel’s objections to the proposed sports betting advertising rules and how they were confronted by the state gaming commission. The rules ultimately went into effect in October.
Some of the memos were initially released in redacted form. The unredacted documents have raised concerns among those who support increased support for problem gambling. Gambling companies that supported regulation before legalization now appear to be trying to weaken it, said Brian Doura-Shawall, a lobbyist for problem gambling.
It’s hypocrisy of the highest order,” he said. ‘Many policymakers are probably taking them at their word that they are prioritizing responsible gambling, not just the general public.
The gambling industry “uses consumer welfare and responsible gambling practices to legitimize the market,” Doura-Shawall added.” But when they have the opportunity to influence regulation, they seek to undo and undo the consumer protection mandate that they promised was a pillar of their business.”
FanDuel did not respond to a request for comment; FanDuel says it is “committed to protecting players” and providing them with the tools to gamble in a “healthy, responsible” manner.
In a September 27 memo, Edmund Burns, counsel for the New York State Gaming Commission, responded to FanDuel’s objection to the rule prohibiting the use of “keywords or similar methods” to lure people “who are or may be gambling addicts” to the site. outlined.
FanDuel argued that this requirement is “extremely subjective and impractical to enforce” compared to “liquor stores’ inability to advertise to customers who ‘may be alcoholics.
The Commission’s staff defended the rule, raising the issue of sports betting platforms embedding phrases such as “problem solving for gambling addiction” on their websites to attract people who type this phrase into search engines FanDuel eliminated this suggestion or limiting it to only “known” problem gamblers, but Commission staff stated that this “does not adequately address the problem.” FanDuel also objected to the ban on advertising “in the vicinity of a college campus.” It stated that this “vague” language “could be read to include unaffiliated residential and commercial areas” in the neighborhood.
The Commission staff defended the ban as intended to prevent “predatory marketing” to underage students. A gambling ad across the street from a freshman dormitory could be “objectionable,” they suggested, even if it is not on university property.
Another rule would hold sports betting operators liable for “false, deceptive, or misleading” statements made by companies marketing their services. FanDuel opposed the rule, arguing that only its affiliates, not the operators themselves, should be held liable. Commission staff, however, defended the rule, arguing that the operating company “can and should be willing to exercise appropriate control” over the actions of its affiliates that promote its platform.
Another memo sent by Barnes on September 25 detailed operators’ objections, including FanDuel’s, to another New York rule revision regarding the fantasy sports market mybetinfo.com. The fantasy sports industry argues that the activity should not be legally classified as gambling, but some addiction-fighting activists argue that it is in fact gambling.
One of the rules would hold operators “strictly liable” if they allow minors or other prohibited people to use their platforms. In the event of a violation, businesses can reduce penalties and sanctions by proving that they relied in good faith on false information; FanDuel disagreed, but Commission staff argued that the measure was “appropriate.”
FanDuel also lobbied to remove the proposed rule requiring operators to include a gambling relief message in their advertisements. According to Burns, such messages “take up too much space” in advertisements, and national marketing should reflect New York-specific requirements. The company also argued that New York law requires only that the message be displayed on a website.
Commission staff defended the rule as “consistent” with state law. Fantasy sports advertising “that could reasonably be expected to be seen in New York should be appropriately regulated,” it said. All of New York’s revised rules for fantasy sports also went into effect in October.
FanDuel also proposed the elimination of anti-money laundering requirements, including the establishment of internal policies, procedures, and controls and the conduct of independent audits provided to regulators, according to Barnes and the state registry. Commission staff defended the bill.
Jim Manney, Executive Director of the New York Council on Problem Gambling, expressed concern about the statewide impact of the surge in online gambling. He said, “I think the industry could do more to help.” . “It may be burdensome, but we must ensure that those most at risk are protected.
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