USA Law and Practice Contributed by: Chao Yu (Charles Yu) and Greg Pilarowski, Pillar Legal
At industry self-regulatory level, the industry associa- tion, the American Gaming Association (AGA), issues the Responsible Marketing Code for Sports Wager- ing and other self-regulatory standards for gambling advertising and promotion. While voluntary for mem-
• Restriction on targeting minors – advertisements shall not target individuals under the age of 21 (or another age depending on state laws). • Responsible play – advertisements may not suggest that gambling can be a way to achieve financial success or resolve personal problems, or suggest that gambling is a rite of passage or a socially required activity. • Help hotline requirement – gambling advertise- ments are usually required to clearly display a problem-gambling helpline number, ensuring access to responsible-gaming resources. The disclaimers, such as “Gambling Problem? Call 1-800-GAMBLER”, must be a clear and conspicu- ous part of any advertisement. • Direct marketing restrictions – operators must provide opt-out methods by which an individual may designate that they do not wish to receive any future direct advertisements. • Record keeping – operators are usually required to maintain a complete record of advertisements for a period of time (usually one or two years). 9.4 Restrictions on Advertising See 9.3 Key Legal, Regulatory and Licensing Provi- sions . 9.5 Sanctions/Penalties At the federal level, a violation of the Publication Advertisements restrictions shall result in a fine or imprisonment of up to two years, or both; and any subsequent offence shall result in imprisonment of up to five years (18 US Code, Section 1302). A violation of the Broadcasting Advertisement restrictions shall result in a fine or imprisonment of up to one year, or both (18 US Code, Section 1304). Additionally, gambling advertising is subject to the Federal Trade Commission Act (15 USC, Sections 41–58), which prohibits unfair or deceptive acts or practices in commerce. The FTC has the authority to take civil enforcement actions against misleading or false gambling advertisements. Remedies typically include injunctive relief, requiring the advertiser to cease deceptive conduct, and civil penalties of up to USD50,120 per violation (adjusted annually for infla- tion).
bers, it influences best practices. 9.2 Definition of Advertising
There is no specific state definition of advertising at the federal level. Some states have defined the term “advertising” or “advertisement” specifically for gam- bling activities, but other states just have a general definition for all business. For example, in New York, “advertisement” is defined under NY Rac, Pari-Mut Wag & Breeding L, Section 1363 as “any notice or communication to the public or any information concerning the gaming-related busi- ness of a gaming facility licensee or applicant or a mobile sports wagering licensee as defined in Section 1367 of this article through broadcasting, publication or any other means of dissemination, including elec- tronic dissemination.” In Nevada, the “advertising” is defined in the con- text of consumer protection law under NV Revised Statutes, Section 598.0905 as “the attempt by pub- lication, dissemination, solicitation or circulation to induce, directly or indirectly, any person to enter into any obligation to lease or to acquire any title or interest in any property.” This definition is not specifically for the gambling business. 9.3 Key Legal, Regulatory and Licensing Provisions The regulatory requirements differ by state. However, many states apply the following principles to gambling advertisement. • Accuracy and honesty – all advertising must be based on facts and not be false, deceptive, or mis- leading. Operators must clearly disclose all material conditions, limitations, and eligibility requirements associated with a bonus offer. No design, font, or colour scheme may obscure essential information. States are also focusing on misleading promotional language, and terms such as “risk-free” or “free money” are prohibited.
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