Sports betting content creators targeted in new legislative initiatives
Bills filed in West Virginia and Maryland which would require state auditing of mobile operator media
Maryland and West Virginia legislators have each introduced bills aimed at clamping down on irresponsible sports betting content creators in their respective states.
West Virginia House bill 3232, introduced earlier this month, and companion Senate bill 571 would empower the West Virginia State Lottery Commission (WVSLC) to appoint “independent evaluators” to conduct an audit and provide an opinion on sports betting content.
This includes content directly or indirectly affiliated with all sports betting licensees in the state, with the evaluators tasked with providing a full report to the WVSLC.
The bills give the WVSLC a three-month window to identify potential independent evaluators, with mobile licensees given a further three months to select their chosen evaluator from the WVSLC’s approved list.
All reporting must be made on a quarterly basis, with the WVSLC charged with using the reports to determine if “material misrepresentations” are being made which may require explanation or further action from the licensee, the content generator, or the affiliates concerned.
This further action can also involve the West Virginia Attorney General’s office if required.
“The purpose is consumer protection through setting standards and guidelines to combat predatory promotions/advertisement, remove industry bad actors, and create generally accepted evaluation practices,” the bills state.
“Creating the guardrails now, stabilizes the industry’s growth and prevents collapses seen in other more mature markets and other industries (i.e. cryptocurrency). The goal is not to restrict business in any way, it is to elevate the industry and protect the consumer,” the legislation adds.
The duo of bills were sponsored by Senators Jason Barrett, Michael Woelfel, and Michael Maroney (SB571) with Delegates Clay Riley and William Nestor sponsoring House bill HB3232.
Maryland Senate bill 621, sponsored by Senators Craig Zucker and Shelly Hettlemen is broadly similar to its West Virginia counterparts, in that it also calls for independent evaluation of sports betting content.
However, SB621 includes greater definition on who could be an independent evaluator, imposing seven tests required to be met for appointment.
These include demonstrable experience of “evaluating and rating” sports betting content, as well as an in-house auditing process maintained by licensed certified public accountants.
Evaluators must also have standards which cannot be adjusted, duplicated, or altered by individuals subject to evaluation and must have no direct or indirect ownership or interest in the operator concerned.
This includes any potential revenue-sharing agreements, while evaluators can be compensated by the licensee if that operator utilizes parts of their respective evaluation within their marketing materials. The Senate bill would see the evaluation process start on April 1, 2024.
The bills come at a period when operator advertising, particularly in respect of sports betting, is under a high level of scrutiny in the US.
Initiatives are currently underway in New York as well as at a federal level with the Betting on Our Future Act (BOFA). All would see significant controls on operator advertising imposed, or indeed, in the case of BOFA, be prohibited almost completely in the US.