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Senator Joseph P. Cryan (D-20) has introduced a new measure, S4021, in an effort to protect vulnerable groups in New Jersey from the potential consequences of sports betting and gambling. The measure especially targets gambling advertising that are deemed dishonest or intended to lure those on the self-exclusion list or minors.
With an emphasis on eradicating dishonest or fraudulent activities, the main goal of the law is to regulate casino and sports betting ads in the state. The proposal of this measure comes in response to similar steps made by other jurisdictions to stifle deceptive advertising and that which targets children.
The S4021 bill by Senator Cryan lays out the rules that would govern sports betting marketing in New Jersey. The proposed regulations would prevent sports betting licensees and the operators they hire from engaging in dishonest or fraudulent promotional tactics. Additionally, these adverts cannot target anyone on the self-exclusion list or directly target those who are under the legal gambling age.
“(12) sports pool related advertising of sports wagering licensees, or their contracted operators, to ensure their advertisements are in no way deceptive or fraudulent, do not direct unsolicited advertisements towards individuals on the list of self-excluded persons established pursuant to section 1 of P.L.2001, c.39 (C.5:12-71.2), and do not appeal directly to individuals under the legal age to wager.”
The measure mandates that guidelines for the content of sports betting commercials be established in order to enforce these prohibitions by the New Jersey Division of Gaming Enforcement.
The measure does not, however, specify what constitutes “fraudulent or deceptive” conduct in the context of sports betting and casino advertisements.
Despite the paucity of specifics in Senator Cryan’s bill, it is expected to focus on the abolition of terms like “free bet” and “risk-free” from sports betting marketing. States like Ohio and Massachusetts have enacted limitations of a similar nature. Operators who breached advertising laws have been subject to heavy fines, particularly in Ohio.
DraftKings received notices of violation from the Ohio Casino Control Commission (OCCC) in January for failing to post the mandatory responsible gaming message on one of its platforms. The OCCC also called attention to the fact that the operator marketed incentives or bonuses using phrases like “free” or “risk-free” when customers really had to lose money or put their own money at risk to take advantage of the promotion. DraftKings was penalized $150,000 as a consequence of these infractions.
Additionally, the OCCC levied a $350,000 punishment on DraftKings for distributing around 2,500 advertising to people who were not of legal gambling age. It is likely that Senator Cryan’s new measure would aim to address related concerns regarding New Jersey’s legal sports betting and casino ads.
In the legislation, Senator Cryan stressed the need to shield vulnerable groups from the negative effects of gambling, saying that “this bill narrowly targets gambling advertisements that are fraudulent, or designed to entice individuals on the self-exclusion list, or who are under the legal age to gamble, while leaving available all other means and methods of advertising.”
The terms of the measure will be thoroughly scrutinized as it advances to determine any potential effects they may have on New Jersey’s casinos and sports betting companies.