New York State regulators run rule over affiliate advertising standards
Empire State officials institute prohibition on ‘risk-free’ advertising and ‘chasing losses’ ads by affiliate marketers
New York State Gaming Commission (NYSGC) regulators have approved new regulatory changes to the way that operators and affiliates advertise sports betting in the Empire State.
At present, the NYGSC’s rules define affiliates as any “entity or person who promotes, refers potential customers to, or conducts advertising, marketing or branding on behalf of, or to the benefit of, a casino sports wagering licensee or sports pool vendor pursuant to an agreement with such licensee or vendor.”
Approved changes to affiliate marketing rules include a requirement that an affiliate marketing partner must disclose whether it has agreed to promote, refer, or conduct advertising on behalf of a sportsbook operator.
This rule is subject to the proviso the affiliate makes that disclosure in a “reasonably prominent manner”, through the usage of an ‘About’ page link which can be accessed via all editorial content.
Other amendments to existing rules approved by the NYGSC in its meeting on Monday (May 21) include a requirement that no false information be published by an affiliate when promoting a sportsbook.
This covers any statement on the chances of winning, the number of winners, and terms and conditions of the bet itself.
In a nod to responsible gambling, the NYGSC has also agreed to clamp down on the usage of terms including ‘risk-free’ or ‘cost-free’ in affiliate advertising, while the encouragement to ‘chase losses’ or reinvest winnings by affiliates is also now prohibited.
Representatives from the NYGSC have suggested they will closely monitor implementation of the approved rules over the next 12 months, with the understanding that these rules will be revised again should the NYGSC find that problem gambling rates in New York State have increased.
Elsewhere, the NYGSC has shed new light on the proposed transfer of PointsBet’s New York sports betting license to Fanatics Betting & Gaming, following the latter’s $150m acquisition of the former earlier this month.
At Monday’s meeting, officials confirmed that the transfer would not occur until Fanatics is subject to a complete staff review and commission approval process, likely to take place over the next few months.
The NYGSC has also suggested it must consider the sale transaction between PointsBet and Fanatics itself before licenses can be transferred, with commission staff already working with Fanatics staff to provide all documentation and comply with pre-ownership requirements.
It will also conduct a background investigation of the company, all factors which could potentially hinder Fanatics’ chances of being live in the Empire State by the start of the new NFL season.
Fanatics was famously denied a New York sports betting licensing in November 2021 after submitting a licensing bid in partnership with Roc Nation co-founder and US rap legend Jay-Z, while PointsBet was ultimately approved in that same process.