SharpRank’s updates on Compliance, Audit, Legislation, Ethics, & Regulation.
Stay up to date with the Sports Betting Industry with The SCALER Weekly.
UK Study Urgently Calls for Regulation as Effects of Content Marketing Become Prominent
A recent report from Bristol University sheds light on the concerning trend of betting firms increasingly using content marketing to target under-18s via social media advertisements, integrating popular cultural references to blur the lines between promotions and entertainment. Dr. Raffaello Rossi, a key researcher, underscores the need for urgent regulatory action to counter these covert advertising tactics. The study suggests a rise in gambling promotions utilizing content marketing, which appeals to young audiences who often fail to recognize these ads as such, circumventing current advertising standards. The report urges the Committee of Advertising Practice to consider banning gambling content marketing or mandating clear labeling of such posts. Sir Iain Duncan Smith expresses deep concern over this trend, while the Betting and Gaming Council defends the industry, emphasizing adherence to strict guidelines and refuting a proven link between advertising exposure and problem gambling. Nevertheless, the call for a zero-tolerance approach to underage betting persists amid growing concerns about the impact of such advertisements on youth.
Maryland Legislators Push for Legalizing Online Gambling
The fate of legal real-money online casino and poker gambling in Maryland may rest with the voters as Delegate Vanessa E. Atterbeary’s HB1319 bill, now in the Senate, inches closer to a November ballot measure. If approved, iGaming wouldn’t launch until at least 2025, requiring regulatory groundwork. Unlike other bills, Maryland’s requirement for gambling expansion to be voter-approved, given its constitutional implications, makes the path slightly different than some other industries’ proposed legislation. The Chairwoman of the Ways and Means Committee, Atterbeary, highlighted the prevalence of illegal iGaming in Maryland and stressed the need for regulation to protect consumers. Despite concerns about fairness and addiction, proponents argue for the bill’s potential to establish a regulated market as a means to eliminate the illegal market. The Maryland Lottery and Gaming Control Commission would oversee iGaming, pledging to enforce responsible gaming standards. Chairwoman Atterbeary’s bill outlines licensing fees, taxation, responsible gambling measures, and first-of-its-kind provisions for social equity ownership (similar to the sports betting focus of such measures in Maryland). Tax revenue impacts on the state have also remained a centerpiece of the discussion. Maryland’s legislative session ends on April 8th.
March Madness Fuels Sports Betting Surge
The NCAA Division I Men’s Basketball Tournament, commonly known as March Madness, has become a focal point for the booming sports gambling industry, with an estimated $15.5 billion wagered on the games in 2023, a substantial increase from the previous year, attributed in part to the legalization of sports betting in 2018 across 38 states. This surge in gambling activity has transformed the tournament experience, with a myriad of betting options now available beyond traditional bracket predictions, including prop bets and single-game parlays, catering to a wider range of fans. Moreover, there’s a notable uptick in gambling interest in the NCAA Division I Women’s Basketball Tournament, driven by increased media coverage and the rising popularity of women’s sports, marking a significant shift in the sports gambling landscape. 2024 projections expect to see last year’s record broken as it relates to dollars wagered on the Men’s and Women’s tournaments.
PA Senator Proposes Credit Card Ban for Online Gambling
Pennsylvania State Senator Wayne Fontana plans to introduce legislation prohibiting the use of credit cards for online gambling activities, aiming to address financial struggles exacerbated by such practices. This bill seeks to amend current regulations allowing credit card use for fantasy sports, online sports betting, iLottery, and iGaming, prompted by concerns about gambling-related problems and the ease of access. With Pennsylvania ranking among the top three states in gross gaming income, Fontana highlights the mounting credit card debt among residents, citing online gambling’s role in high interest rates and inflation. As states nationwide grapple with similar issues, some, like Massachusetts, Tennessee, and Iowa, have already implemented bans on credit card use for sports wagering, reflecting a growing recognition of the need for regulatory action to mitigate the negative financial impacts of online gambling amidst a national rise in credit card debt.
Minnesota Senate Advances Sports Betting Legislation with Revised Tax Rates and Revenue Allocations
The Senate Tax Committee of Minnesota has advanced legislation to legalize sports betting in the state, spearheaded by Senator Matt Klein, facing its second hearing in Taxes, focusing on tax rate adjustments and revenue allocation. Senator Aric Putnam’s amendment notably increased the tax rate to 20%, with revenue designated for various purposes including tax relief for charities and problem gambling awareness programs. The amended bill, SF1949, received approval from the Senate Taxes Committee and moves to the Senate Finance Committee amid a looming deadline for legislative approval. Challenges persist, notably over tax rates and revenue distribution, with recent amendments affecting projected tax revenue.
Minute Media Takes Over Sports Illustrated Publishing Rights
Minute Media has acquired the digital and print licensing rights to continue publishing Sports Illustrated, entering into a partnership that may extend up to 30 years, with the aim of upholding SI’s esteemed legacy while exploring new media channels. The move follows months of uncertainty after Authentic Brands Group terminated the license from the previous publisher The Arena Group. As part of the deal, Authentic also gains an equity stake in Minute Media, ensuring the protection of SI’s journalistic integrity amidst the evolving media landscape.
