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Sportsbooks Playing It Safe On Campus With New AGA Code

The AGA wants to promote responsible gambling by those of legal age in states that allow itSARA SLANE

Leading sportsbooks including MGM Resorts, William Hill, DraftKings and FanDuel have agreed not to advertise sports betting on college campuses and will tag their ads with responsible gaming messages as part of a sports wagering marketing code announced today by the American Gaming Association. The announcement comes on the first anniversary of the U.S. Supreme Court decision that opened the door for states to authorize and regulate sports betting. Seven states have joined Nevada in allowing legal sports betting in that time, while three other states and DC have passed legislation or referenda and are expected to begin operating by year’s end. Research firm GamblingCompliance yesterday predicted sports betting will spread to 34 states and generate $5.7B in annual gross gambling revenue by '24.

RESPONSIBLE GAMING: The code focuses on promoting responsible gambling by those of legal age in states that allow it. It bans messages that “promote irresponsible or excessive” sports betting, or “suggest that social, financial or personal success is guaranteed” through sports betting. The guidelines also apply to advertising through digital and social channels, as well as content on sportsbook sites. The code anticipates, and hopes to avoid, the sort of blowback that has followed the growth of online sports betting elsewhere in the world. Driven in part by increases in underage gambling, sportsbooks in the U.K. recently agreed to stop buying spots during sporting events. The Australian government imposed similar advertising restrictions last year, while Italy last year banned gambling companies from both advertising and sponsorship. “After what we’ve seen around the world, we’d be foolish not to get out in front of this and do this in a way that’s responsible,” said AGA Senior VP/Public Affairs Sara Slane, who serves as the organization’s point person on sports betting. “We want to set ourselves up for long-term success and not get ahead of ourselves and squander the opportunity we have to build an amazing product and do it in a thoughtful and responsible way. We want to play the long game. This helps us to move forward.”

AVOIDING CONTROVERSY: The guidelines also are meant to avoid the sort of controversy that daily fantasy sports sites encountered at the start of the '15 NFL season, when they blitzed the airwaves with spots touting life-changing payouts, typically featuring 20-something males, Slane said. While they address ad content, they do not set limits on frequency. “A lot of that will be contingent on the broadcast companies,” Slane said. “We need a partnership in order to make sure that is carried through. There is a commercially reasonable thing we can ask our members to do. To say frequency or duration, specifically what that is, brings in a lot of competitive nuances. A lot of the decision-making on that front will lie with the broadcast companies."

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