Sports Advertising Strategies under Scrutiny: Report Criticizes Aggressive Sports Betting Notification Methods
In a recent report, the National Consumers League (NCL) has highlighted concerning findings about the marketing practices of sports betting companies. The NCL found that 93% of push notifications from top sports betting apps contain advertisements, with many of these notifications being sent outside the permissible hours proposed in the SAFE Bet Act.
With betting apps gaining prominence and sports gambling increasingly woven into the cultural mainstream, these findings may mark a turning point in how tech-enabled gambling promotions are regulated.
The SAFE Bet Act, proposed by the U.S. Congress, aims to address these concerns by proposing to ban promotional content in betting ads, outlaw the use of AI to create personalized offers, and restrict ad delivery times.
Other legislative remedies are also being considered. For instance, in New York, Senate Bill S5537, sponsored by Sen. Kristen Gonzalez, would ban push notifications and text messages from sportsbook apps like DraftKings and FanDuel. In New Jersey, legislation supported by consumer advocacy groups seeks to ban mobile sports betting ads via push notifications, aligning with the NCL’s recommendations.
Other states like Minnesota and Massachusetts have shown interest in legislation regulating AI and marketing practices in sports betting, with regulators calling for stronger consumer protections against abusive advertising tactics possibly enabled by technology.
The NCL is not advocating a ban on sports betting itself, but is urging for a crackdown on aggressive tactics in its marketing. Eden Iscil, Senior Public Policy Manager at NCL, stated that the use of app notifications for advertisements is an extremely invasive marketing practice that should not be normalized.
The group has published a blog outlining how the Federal Trade Commission should approach the issue and is urging the FTC to investigate whether push notification advertising may violate existing laws against unfair and deceptive marketing practices.
The Regulating Addictive Notifications Act, proposed by the New York State Senate, aims to prohibit the use of push notifications and texts for soliciting bets. These proposals reflect an emerging regulatory focus on protecting vulnerable consumers from addictive and persistent marketing enabled by smartphone notifications and AI-driven targeting in the gambling industry.
The NCL's full report is available to the public, detailing the extent of the issue and offering recommendations for lawmakers and regulators. As the debate around sports betting regulation continues, it is clear that consumer protection will be a key consideration.
[1] National Consumers League Report: [Insert Link] [2] State-Level Proposals on AI and Marketing Practices in Sports Betting: [Insert Link] [3] New Jersey Legislation on Mobile Sports Betting Ads: [Insert Link] [4] New York Senate Bill S5537: [Insert Link] [5] Regulating Addictive Notifications Act: [Insert Link]
- The National Consumers League's report on the marketing practices of sports betting companies reveals that 93% of push notifications from top sports betting apps carry advertisements, which are often sent during hours that exceed the permissible limits set by the SAFE Bet Act.
- Amidst the growing prevalence of sports gambling and the fusion of casino-and-gambling culture into the mainstream, there is a rising need for policy-and-legislation to address the concerns surrounding tech-enabled gambling promotions.
- In an effort to combat these issues, legislative remedies such as Senate Bill S5537 in New York and New Jersey legislation are being considered, aiming to ban push notifications and text messages from sportsbook apps and align with the recommendations given by the NCL.
- Moreover, the Regulating Addictive Notifications Act proposed by the New York State Senate seeks to prevent the use of push notifications and texts for soliciting bets, as part of the broader goal of protecting vulnerable consumers from addictive marketing trends in the gambling industry.
