Sportsbooks are cashing in with predatory ads
This weekend, as more than 100 million Americans tune in to watch the Super Bowl, they’ll see dozens of slickly produced, entertaining advertisements. Unfortunately, those watching will also be subjected to something more sinister — the latest predatory ad blitz from the multi-billion-dollar
▶ U.S. Rep. Paul Tonko of Amsterdam represents New York’s 20th Congressional District. sports betting industry.
Companies like Fanduel, Draftkings and others have invested tens of millions of dollars to get as many eyeballs as possible during the big game — the most profitable day of the year for the industry. They’re rolling out new stunts this year — including promising $10 million in “free bets” if Rob Gronkowski can kick a field goal, or even encouraging fans to bet on the content of their own Super Bowl ads.
These gimmicks are simply the latest in a series of shifting tactics in an industry aggressively fighting to court and retain new customers. Whether they offer “risk free” or “no sweat” bets, or simply too-good-to-be-true promo offers, the sportsbook industry has been ruthless in pursuit of customers to get hooked on its product. Everyday Americans now can’t seem to escape the daily barrage of promotions enticing them into the world of gambling.
So how did we get here? In 2018, the U.S. Supreme Court struck down the federal ban on sports betting. Suddenly, states could decide for themselves whether the legalization of sports betting was suitable for their residents and local economies. With the potential for massive profits, multi-billiondollar sportsbooks and their lobbyists immediately set to work on state lawmakers.
As of today, 36 states have legalized sports betting, with 26 of those legalizing mobile sports betting. Few, if any, impose restrictions on advertisements from sportsbooks. Even worse, many states permit these sportsbooks to deduct these aggressive promotions for tax purposes, reducing their taxable income as well as any potential revenue for state and local governments.
The gambling industry insists that advertising restrictions
would be counterproductive. I disagree. When more than $1.8 billion is spent on ad campaigns to bring new customers into the fold, underage and vulnerable individuals will inevitably be swept in as well.
The National Council on Problem Gambling found that between 60 and 80 percent of high school students had gambled for money in the previous year, likely driven by ads on social media and the ease of access to online gambling. Even more disturbing, the group says that 4 to 6 percent of those high schoolers are considered addicted to gambling.
Young people aren’t the only ones influenced by the constant stream of advertisements from sportsbooks. The National Problem Gambling Helpline Network saw a 45 percent increase in calls in 2021, the highest for the helpline in six years. The National Council on Problem Gambling believes many who were once in recovery have since been lured back into gambling by these incessant advertisements.
Problem gambling devastates lives. It’s estimated that at least 7 million Americans
have a gambling problem in the U.S., and millions more friends and family members experience the collateral damage. If betting companies, leagues, and states won’t do more to curb the surge in problem gambling, the federal government must step in.
That’s why this week, I introduced the Betting on our Future Act, legislation to ban these predatory sports betting advertisements from our airwaves and our mobile devices.
This legislation is modeled directly on the Federal Cigarette Labeling and Advertising Act. The sports betting industry’s incessant targeting and promotion of a known harmful product is no different than the heyday of tobacco advertising — when cigarette brands penned catchy slogans and sponsored popular television shows. Eventually, as the risks of smoking became impossible to ignore, that age of advertising came to an end.
While legalized sports gambling may be here to stay, we don’t have to accept the current Wild West system that creates perverse incentives for state regulators and allows predatory advertising to thrive.
We can and will do better. I’m betting on it.