Gaming researcher Bo Bernhard has long advocated Las Vegas as the laboratory for jurisdictions worldwide to come and learn about the casino industry. The International Gaming Institute at the University of Nevada, Las Vegas, was developed for that purpose.
Bernhard, the institute’s executive director who recently took on the added role of vice president of economic development for the university, said last week the U.S. gaming industry should study Europe as a model for the rapid expansion of legal sports betting continues its path across America.
“This is the first instance in my professional career that I believe we can learn lessons from other markets,” Bernhard said. “Europe is far more advanced and experienced in dealing with issues arising from a rapidly growing sports betting system.”
Bo Bernhard, executive director, International Gaming Insitute.
Bernhard was one of five authors of Sports Wagering and Advertising in the United States, which took a critical look at America’s sports wagering market.
Since the ruling by the U.S. Supreme Court in May 2018 that repealed the Professional and Amateur Sports Protection Act, sports betting has been legalized and is operating in 21 states and Washington D.C. The activity has been approved but is not yet operational in six other states. More than a dozen additional states are considering legislation or voter initiatives to legalize the activity.
Since the legalization, professional teams and leagues have signed partnership and marketing agreements with sports betting operators. Last week, the National Football League became the last of the “four majors” to add an “official sports betting partner” when it announced agreements with Caesars Entertainment, DraftKings, and FanDuel.
The airwaves, social media, traditional media outlets, as well as stadium and arenas, have been flooded with sports betting messages, advertising, and programming as the activity has grown.
“These are all topics whose complexity necessitates further analysis and discussion, and we look forward to engaging them as these debates continue to unfold,” the authors wrote in the report’s executive summary. “We believe this report constitutes a promising start, in a manner that will surely lead to national conversations, as we have learned from other jurisdictions and the U.S.’s own history with sports wagering advertising.”
In less than three years sports betting is legal in half of the U.S. and the report’s authors attempted to answer questions on how sports betting is promoted by advertisers, media, and the gaming industry. The overwhelming concern is if or when regulators and government officials would step in and halt some of those activities.
Jennifer Shatley, UNLV IGI researcher
Illegal sports betting still prevalent
Despite the efforts of the gaming industry, legal sports betting has not eliminated the illegal offshore sports betting markets that flourished before the Supreme Court ruling.
“The expansion has been very rapid, and the regulations differ state by state,” said Jennifer Shatley, the report’s lead author and editor, a former Caesars executive who is a researcher at the Institute.
“From my perspective, the regulations should be viewed as minimum standards, and sports betting operators must operate at higher standards,” Shatley said in an interview.
The report was sponsored by the Entain Foundation US, an arm of United Kingdom-based gaming giant Entain PLC. Entain and MGM Resorts International are joint-venture 50-50 owners of Roar Digital, the company that operates sports betting provider BetMGM.
As with all International Gaming Institute reports, Entain did not see the final document until it was released to the public last week.
Betting logos could be removed from Premier League uniforms
Advertising messages
The authors – Shatley, Bernhard, Kasra Ghaharian, Alan Feldman, and Becky Harris – took a critical look at the advertising message in sports betting that could unwittingly target “vulnerable” audiences, including underage viewers and those prone to problem gambling.
The study cited England, where “unchecked growth” in sports betting advertising and messaging can lead to “a backlash and/or a pumping of brakes” – either by the government or by the gaming industry itself. In England, the government is looking at banning sports betting logos on the uniforms of professional soccer teams.
“In the U.S., advertising is due for a critical evaluation now, before backlash emerges,” the authors wrote. “Gambling has mainstreamed and has a right to advertise its products; however, those rights can and should be questioned when they impose upon others’ experiences in a way that leads to direct and clear harm.”
Avoid illegal gambling sites
Among the recommendations included media outlets avoiding references in articles to illegal offshore gambling sites as reputable outlets. One instance cited was a story by the Washington Post last year on offshore betting site Bovada offering odds on the weather. Bovada is unregulated but continues to market to Americans.
In interviews, Bernhard and Shatley said legal sports betting has broadened the “stakeholders” group to include media outlets, many of whom – such as ESPN, The Athletic, and the major broadcast networks – have various agreements with sports betting operators.
“The mentions between the leagues, multimedia outlets, and gambling have become more common,” Shaley said, adding, the report offers recommendations for a “holistic framework” to promote sports wagering in a responsible manner.
Bernhard, who was critical of the Washington Post story last year, said media outlets should cite legal and regulated sports betting operators rather than illegal sportsbooks, such as Bovada, that aren’t governed by regulations and don’t pay taxes.
He added that it was also incumbent of legal and regulated sports betting operators, most of whom operate in multiple states, to be more proactive in their messaging.
“When looking to adapt advertising policies, U.S. operators, advertisers, and the media have plenty of existing resources for guidance on what to do and what not to do,” the authors said.
Howard Stutz is the executive editor of CDC Gaming Reports. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
