Proposed Restrictions on Sports Betting Ads Could Benefit Partnerships
October 9, 2024
While we are a long way from official action—especially considering the way things have been working, or not, in the U.S. Congress in recent years—the specter of federal restraints on sports betting advertising is looming and the smart money is on some form of regulation being imposed in the not-too-distant future.
On September 12, U.S. Rep. Paul Tonko (D-N.Y.) and U.S. Senator Richard Blumenthal (D-Conn.) introduced the Supporting Affordability and Fairness with Every Bet Act in the House of Representatives and the Senate. The SAFE Bet Act would require the 38 states where sports wagering is legal and any other states wanting to legalize it in the future to apply to the U.S. Attorney General for approval.
To earn Justice Department go-ahead, states would have to prohibit in-game wagering, ban prop bets in collegiate and amateur sports, enact specific limits on deposits into gambling accounts and, as a recent Sportico article noted, “prohibit sports betting broadcast advertising between 8 a.m. and 10 p.m. local time, ban those ads during live sporting events, disallow ads that try to induce gambling through ‘bonus bets’ and similar promotions and block marketing tactics that target problem or ineligible gamblers (such as those under the age of 21) and urge them to place bets.”
The bill faces stiff opposition from the gaming industry and will undoubtedly undergo many adjustments before even facing congressional votes.
But if some or all of the advertising restrictions become law, it could be a windfall for rights holders as sports betting operators seek replacement marketing channels to keep their brands and products in front of fans—provided of course that any amended bills don’t include limits on sponsorships and partnerships.
For proof, all you have to do is look at the origin of modern sports sponsorship, which was heavily influenced by tobacco companies seeking new ways to market in the wake of Congress banning all cigarette commercials from broadcast media effective January 2, 1971. That same year, R.J. Reynolds Tobacco Co. secured title sponsorship to NASCAR’s top-level racing circuit—renaming it the Winston Cup Series—followed quickly by Philip Morris & Co.’s Marlboro brand entering Formula 1 and a host of other ties between tobacco brands and sports properties.
Even if the federal government places limits on live wagering and prop bets, legalized sports betting will remain a critical source of revenue for sports rights holders through data licensing deals, partnerships and by driving fan engagement. Partnerships that support responsible gaming should remain an important part of that mix regardless of what does or doesn’t happen on Capitol Hill.
