In their noble effort to control the wave of disruptive sports betting promotions, New York gambling authorities acknowledged they may have gone a bit overzealous, especially when it comes to affiliates, including the parent company of PlayNY.
Legal betting in NY has reached unprecedented levels, with the introduction of online sportsbooks in January 2022 turning the Empire State into the largest US betting market.
With the growth of legal sports betting in NY, there is a need to enhance responsible gambling efforts, officials say.
LOS ANGELES sports betting regulations aimed at employees, not web marketers
The result was a package of regulations from the New York State Gaming Commission to address concerns and enhance responsible gaming.
During a regular meeting on Monday, the NYSGC backed off a proposal that would “effectively prohibit affiliate marketing from being compensated,” an unintended consequence of language targeting third-party deals based on customer acquisition and retention. Since affiliates were not the intended target of the rules, the NYSGC amended the proposal’s wording.
The gaming commission’s staff reassured the board that fixed-sum compensation deals were permissible under state law. NYSGC staff suggested that affiliates should be subject to the existing statute.
“What we’re doing today is allowing third-party marketing, and I understand that that is probably something that has been done in other jurisdictions,” said Commission Chair Brian O’Dwyer.
News media transparency is often good
Web marketers did not go away scot-free. An additional amendment requires affiliate marketers to disclose business practices on their websites.
O’Dwyer added that he and the commission would be monitoring affiliate marketers.
“I personally will be looking very, very closely at the marketing in the next six months to a year,” he said. “If I find that in the next six months to a year there have been significant problems with this type of advertising, I will come back to the staff and to my fellow commissioners and ask that we revisit the rule and prohibit third-party advertising.”
The gambling rules package is under review for adoption in the State Register.
The commission’s package of gambling rules is designed to hold gambling operators accountable for their business practices, many of which have come under recent public scrutiny. Online sportsbooks, in particular, are being criticized for misleading customers, targeting young people, and limiting winning bettors. In March, the NYSGC decided to tighten restrictions on sports betting advertisements.
Officials explained that sports betting ad regulations from other states, such as Arizona, Massachusetts, Ohio, and California, influenced NY’s efforts.
Doing each of our part
Disclosure: PlayNY is a regional website under Catena Media, a gaming affiliate. Here is a more detailed process of how PlayNY operates.
Content produced by Catena Media may include web-based links to online gambling and casino business partners.
Affiliates function similarly to traditional newspapers in that content/editorial/news is separate from revenue/circulation/advertising. Most affiliates in the gaming space uphold ethical reporting standards and practices, including Catena Media, which employs dozens of former journalists and credentialed news media members.
David Danzis is a writer for PlayNY. A New Jersey native and honors graduate of Rutgers University, he served as a newspaper reporter for the New Jersey Herald and Press of Atlantic City, earning statewide awards for his coverage of politics, government, education, sports, and business. Currently, he covers New York’s growing legal gambling landscape, including online betting and the potential legalization of online casinos in NY. David resides in Mays Landing with his wife and two children. When not at the beach, on the golf course, or snowboarding, David enjoys watching his beloved New York sports teams—the Yankees, Jets, Rangers, and Knicks.
