New Jersey Proposes Gambling Ad Language Rules to Promote Safer Betting

New Jersey lawmakers are currently advocating for a comprehensive study on the language used in gambling advertisements with the goal of promoting responsible betting practices while simultaneously minimizing exposure to underage individuals.

Assemblyman Clinton Calabrese and Assemblywoman Garnet Hall’s Bill A5562 recently received approval from the Assembly Tourism, Gaming, and the Arts Committee. Following suit, Senators John McKeon and Renee Burgess introduced a companion measure, S4366, to the Senate committee this past Monday.

Aim of the Proposed Legislation

The primary focus of S4366 is to restrict the advertising reach of gambling companies, particularly as it pertains to younger demographics. If enacted, this legislation would implement a ban on gambling advertisements in proximity to educational institutions such as schools and colleges, as well as prohibit materials perceived to target individuals under the age of 21. This bill marks a more moderate approach compared to earlier proposals seeking a blanket ban on all online and mobile betting advertisements, which have stalled since their introduction in January.

The state is taking other proactive measures to address underage gambling, including the launch of an awareness program in high schools in collaboration with Rush Street Interactive and Integrity Compliance 360.

Study Focused on Responsible Gambling Messaging

If the bills are passed, they will authorize a study by the Division of Gaming Enforcement (DGE) aimed at assessing “the effectiveness of various words and phrases” used in advertisements for online casinos and sportsbooks.

New Jersey’s online casinos achieved a record revenue of $2.4 billion last year, but it’s crucial to acknowledge that unregulated operators contributed an additional $1.5 billion. The study will not only monitor legal gambling entities but also aim to curtail the prevalence of illegal gaming operations.

The stated purpose of Bill S4366 is to “deter illegal or irresponsible gambling, challenge prevailing perceptions, and advocate for the adoption of responsible gambling tools.” The DGE’s analysis will explore specific words and phrases that could inspire responsible gambling behavior, culminating in a curated list of 3-10 approved phrases for use in marketing campaigns. Additionally, the study will delve into factors such as font size, placement, and repetition, evaluating how these elements impact gambling behavior.

Gambling Advertising Landscape

According to a survey conducted by the Pew Research Center, 60% of adults in the U.S. report seeing gambling advertisements frequently. Conversely, the UK’s Gambling Commission revealed that 34% of individuals aged 11 to 16 encountered gambling advertisements online within the past week.

Several states have already enacted similar restrictions on advertising by gambling operators. For instance, in New York, gambling ads are prohibited in media primarily consumed by individuals under the age of 21. Massachusetts and Ohio have also introduced regulations concerning the terminology that companies can legally employ. Terms such as “risk-free” or “free bet” cannot be used if the bettor’s initial stake is not returned in real cash. Moreover, Ohio stipulates that rollover requirements must be clearly outlined rather than buried in fine print.

With gambling operators allocating sizable portions of their budgets to promotions and advertising—an estimated $1.8 billion spent in 2023 alone—the Responsibility Gambling Council has highlighted the profound effectiveness of marketing in the gambling industry, stating, “Advertising works—that’s why operators invest millions in it. However, with such power comes significant responsibility.”

In summary, as New Jersey explores new avenues for regulating gambling advertising, the emphasis remains on protecting vulnerable populations while promoting responsible gambling practices. The ongoing studies and legislative initiatives signal a commitment to ensuring a safer environment for all participants in the gambling landscape.