AGA Defends Sportsbooks Against Claims of Guideline Violations

AGA Defends US Sportsbooks Amid Claims of Responsible Gaming Ad Violations

Amid rising scrutiny over responsible gaming practices, a recent study accused leading US sportsbooks of failing to meet advertising standards. The American Gaming Association (AGA), however, is pushing back hard, defending its members and calling the claims an “irresponsible misinterpretation.” As the debate heats up, this conflict highlights the complexities of regulating gambling ads in an ever-evolving digital landscape.

AGA Rejects UK Study Allegations

The controversy erupted after a University of Bristol study, exclusively reported by The Guardian, claimed that four major US sportsbooks — BetMGM, DraftKings, FanDuel, and ESPN Bet—were not consistently including responsible gaming messages in their advertising. The research found that nearly 75% of the 1,353 social media posts examined did not display messages about problem gambling support, as outlined by the AGA’s voluntary marketing code.

The study, which scrutinized posts across Facebook, Instagram, TikTok, and X, argued that many of these communications “may breach” the AGA’s advertising standards. The code, established in 2019, suggests that all ads should prominently feature responsible gaming messages alongside a toll-free helpline number. The findings led to accusations that these sportsbooks were not fully adhering to the industry’s own rules on promoting responsible gaming.

A Debate Over What Constitutes Advertising

The AGA was quick to respond, defending its members and disputing the study’s interpretation of what qualifies as advertising. The trade body argued that the social media posts in question were designed to build brand awareness rather than directly encourage betting, thus falling outside the scope of the guidelines.

Joe Maloney, AGA’s Senior Vice-President, stated, “Like companies across other industries, sports betting operators provide relevant, engaging content to customers designed to maintain brand awareness without promoting a specific offering that is covered by the code, like sports betting.”

Maloney further emphasized that the code’s requirements apply specifically to advertisements, not all social media activity. “To describe the sharing of sports facts, schedules, or discussion topics via tweets and posts as advertising and thus applicable to our code is an irresponsible misinterpretation.”

Industry vs. Academic Perspectives

The study’s lead researcher, Raffaello Rossi, countered the AGA’s defense, arguing that any social media post by a gambling brand can be viewed as a form of advertising, especially given the vast reach of these platforms. Rossi emphasized that the study’s findings were not about nitpicking but rather about pushing for greater consistency in responsible gaming messaging across all forms of communication.

Maloney, however, compared gambling companies to other industries that use social media to engage their audiences. “This is no different from Gap or Banana Republic wanting to ask followers on social media platforms, ‘It’s fall right now, what are you wearing as the temperature cools?’”

AGA Defends Industry Standards and Calls for Sensible Regulation

While the study sparked headlines, it also revealed that the sportsbooks were compliant in other areas. The Guardian noted that 310 paid ads from the same companies included responsible gaming messages and helpline numbers, aligning with the AGA’s code. Maloney reiterated the AGA’s commitment to responsible advertising, stating, “We’re proud of our members’ responsible advertising practices and their commitment to upholding strong industry standards.”

The AGA also pushed back against the study’s call for federal oversight of gambling advertising, arguing that such a move would undermine state regulators and give illegal markets an advantage. Maloney warned that federal regulation could stifle the industry’s ability to adapt and evolve, advocating instead for state-level controls tailored to each market’s needs.

The debate over advertising standards in the US sports betting industry underscores the ongoing challenges of balancing commercial freedom with consumer protection. The AGA’s rebuttal highlights the complexities of defining what constitutes an advertisement in the digital age and raises questions about the role of regulatory bodies in shaping industry practices. As the gambling landscape continues to evolve, finding common ground between operators, regulators, and researchers will be crucial in promoting responsible gaming while fostering industry growth.