Online Betting Is Losing The PR War
Online Betting Is Losing The PR War
The court of public opinion is where a lot of decisions are made, and right now, the online casino industry is losing the PR battle against its opponents.
The Bulletin Board
VIEWS: The gambling industry needs to realize it’s involved in a PR battle.
LEGAL and REGULATORY UPDATES: RI issues a sports betting RFP; Maynard named MGC Chair; LA Study Commission will meet in Dec.
NEWS: Tennessee issues C&D and a fine to Bovada.
NEWS: Illinois suspends some betting markets at NFL’s request.
AROUND the WATERCOOLER: One area where affiliates went sideways.
STRAY THOUGHTS: Strike First; Strike Hard; No Mercy, Sir.
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Is the Gambling Industry Losing the PR War?
The Lancet says it’s time for a public health response to gambling, and the industry should pay close attention. Unfortunately, the industry seems unaware that a major PR battle is taking place.
“Today, we publish the Lancet Public Health Commission on gambling—an inquiry and response to a neglected, understudied, and expanding public health threat. Gambling is not a simple leisure activity; it is a health-harming addictive behaviour. The harms associated with gambling are wide-ranging, not only affecting an individual's health and wellbeing, but also their wealth and relationships, affecting families and communities with potential lifelong consequences, and deepening health and societal inequalities. By assessing the barriers to preventing gambling-related health harms, the Commission unveils and deciphers the intersections between the social, commercial, legal, and political determinants of health.”
Many other groups and outlets have raised these concerns before, but as Richard Schuetz said, “The Lancet is one of the most respected journals in the world. It seems the gaming industry is not very good at truth-telling.”
While I don’t think the problem is truth-telling, the industry has struggled with full transparency, which has allowed its critics to tell the narrative.
Industry analyst Gene Johnson noted that the “UK health bureaucracy has equated gambling with tobacco as a universal harm.”
Or, as the subhead from NBC News put it, “An international group of health experts concluded that existing regulations globally are insufficient to protect the public from the potential harms of widely accessible gambling.”
Those talking points and headlines are brutal. They are knockout blows in the PR fight. Meanwhile, the industry seems content on weathering the storm, as it focuses on pumping up the good and spinning anything negative into a positive. The industry might be correct, but that’s neither here nor there in the court of public opinion.
When The Lancet says, “For too long, governments—also conflicted because of the benefits they gain from taxes and revenues of a profitable industry—have paid little attention to understanding gambling-related harms,” you have a problem on your hands.
The Lancet goes on to say:
“The Commission calls on governments and policy makers to treat gambling as a public health issue—just as for other addictive and unhealthy commodities, such as alcohol and tobacco—and provides recommendations to prevent and mitigate the broad range of harms associated with gambling. Interventions at both population level and individual level are important.”
“The Commission calls for effective gambling regulation to be put in place in all countries, and to include reductions in population exposure, through prohibitions or restrictions on access, promotion, marketing, and sponsorship.
“[…]
“The industry will claim that their products are enjoyed by millions of people, the overwhelming majority of whom do not suffer adverse consequences, and that such recommendations are unfairly encroaching on the freedom of individuals. This Commission exposes these assertions as deeply misleading. Governments have a duty to protect their citizens from harmful and addictive products and to adopt a public health response to gambling.”
If the industry thinks denying it oxygen will make the problem go away, it is sadly mistaken — at least in my opinion.
Legal and Regulatory Updates: RI Issues an RFP; Maynard Named MGC Chair; LA Study Commission to Meet in Dec.
Rhode Island considers ending its sports betting monopoly: The Rhode Island Lottery has issued an RFP for a sports wagering study that “recommends how to maximize the state of Rhode Island’s revenue by determining the optimal number of sports wagering service providers in Rhode Island.” Responses must be submitted by November 7, 2024.
Maynard tapped as MGC Chair: After serving as the interim chair since Cathy Judd-Stein stepped away from the role in March, Jordan Maynard has officially been named the Chair of the Massachusetts Gaming Commission by Gov. Maura Healey. Healey also added former Melrose Mayor Paul Brodeur as the fifth member of the Commission.
Louisiana Online Gambling Study Commission will meet in December: The first Senate committee meeting will be held on December 11, which coincides with the National Council of Legislators from Gaming States conference in New Orleans (December 12-15). According to State Sen. Kirk Talbot, who spoke to Play USA’s Matthew Kredell, “iGaming is a big issue, certainly the next thing in gambling. I thought it would be prudent for us to look at it.”
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Tennessee Issues C&D and Fine to Bovada
The number of states that have rolled up the welcome mat on Bovada continues to grow, with the Tennessee Sports Wagering Council the latest regulatory body to send the Curacao-based company a cease-and-desist letter. Tennessee also took it a step further by issuing the company a $50,000 fine and advising all Bovada customers to withdraw their funds immediately.
According to Kim Jarrett of the Center Square, Tennessee investigators placed wagers at Bovada last week, which led to the fines. Regulators can issue escalating fines of $10,000, $15,000, and $25,000 for illegal gambling offenses.
"Our primary role is the protection of the public interest through a safe, regulated environment, and Tennessee sports bettors need to know that just because they can access a sports betting website or app inside Tennessee’s borders does not mean it is licensed to do business here," said the council's executive director, Mary Beth Thomas.
Since Michigan started the cease-and-desist parade in June, the list of states Bovada has withdrawn from has grown from five to 14, plus the District of Columbia.
However, as previously noted:
“So far, the operators have complied (or, in the latest [sweepstakes] cases, opened a dialogue with the MGCB). Still, as Vixio (a newsletter sponsor) has noted, if the sites don’t abide by the C&D letters, state regulators don’t have a lot of enforcement options at their disposal.”
Further, Bovada is just one large fish in a well-stocked pond. There are plenty of other offshore online sportsbooks. As GeoComply’s Anna Sainsbury said during an iDEA Growth webinar last month:
“According to slides from GeoComply’s Anna Sainsbury, Bovada saw 85 million visitors over a three-month period, highlighting that the lack of legalization doesn’t mean there is a lack of online gambling options at any US resident’s fingertips. Sainsbury went on to say that there are 50 major black market online gambling brands still operating in the US and hundreds more lesser brands catering to niche audiences.”
Illinois Temporarily Suspends Some Betting Markets
At the NFL's request, Illinois Gaming Board Administrator Marcus Fruchter has temporarily suspended NFL bets that involve wagering on injuries, player conduct, officiating assignments, and negative-outcome predetermined events.
Per Chris Altruda of Action Network, Fruchter was able to temporarily suspend the wagers due to powers granted during the COVID pandemic (and renewed earlier this year). The IGB will vote on making the change permanent at its December meeting.
As Altruda noted, Jonathan Nabavi, the NFL’s Vice President of Public Policy and Government Affairs, presented the league's case to the IGB.
"Inherently objectionable bets represent markets or bets that are derogatory, designed to be inflammatory, or otherwise based on subject manager that's against public policy… Unlike wagers offered on the result of a game or a specific type of performance, these types of wagers are more susceptible to many because a single person or player may easily control the outcome of that waiver. Prohibiting these wagers would complement the NFL policies that require game participants and other NFL personnel to use their best efforts on the playing field and protect NFL inside information.”
Illinois is the latest state to trim its betting offerings to strengthen integrity:
The NCAA has been on a year-long crusade to eliminate player prop bets (with mixed results).
In August, Colorado called an end to 100 negative markets, bets that win when something undesirable happens.
Earlier this month, the NBA persuaded its betting partners to eliminate “under bets on NBA players who are on two-way or 10-day contracts,” per ESPN’s David Purdum. The effort dates back to the Jontay Porter betting scandal.
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Around the Watercooler
Social media conversations, rumors, and gossip.
Looking at the current affiliate hellscape landscape, Kyle Scott Laskowski said on LinkedIn, “My take: These companies have artfully spun their growth stories and downplayed the importance of rented revenue from partner sites they don't own.”
I have many thoughts about this topic, which I will explore in a future feature column.
Stray Thoughts
Today’s Stray Thoughts is connected to the lead story.
One of the most important concepts in self-protection is knowing when to hit first (both legally and for safety).
You need to realize that if someone is yelling and preventing you from extricating yourself from the situation, you are already in a fight, even though no punches have been thrown.
This is how I feel the industry is handling the PR battle I mentioned in today’s lead story. They are waiting for punches (legal or regulatory action) to be thrown before they start to fight back.
Another concept I try to hammer home is the maxim that whoever starts it usually finishes it. You can wait for punches to be thrown, but realize the average person can throw about three per second, so by the time you’ve decided to act, you’ve probably been hit multiple times, and the fight is likely to be unwinnable.