Zona de Azar USA – Major Betting Companies Violate Social Media Marketing Rules
USA.- September 4th 2024 www.zonadeazar.com A new study reveals that the four leading online betting brands may be systematically violating industry self-imposed marketing regulations.
During a week this summer, researchers from the University of Bristol analyzed over 1,000 posts from BetMGM, DraftKings, ESPN Bet, and FanDuel on Facebook, Instagram, X, and TikTok, finding that 75% of their organic content did not include support messages about problem gambling or helpline numbers.
The study concludes that the rules established by the American Gaming Association (AGA), a gaming industry lobby group, “are not being followed” by operators on social media.
The AGA dismissed the findings as an “irresponsible interpretation.” Betting has rapidly grown in the U.S., with 38 states and Washington D.C. legalizing sports betting, leading operators to use social media to fuel their expansion.
“It seems they will do anything to get people to sign up,” noted Raffaello Rossi, a marketing professor at the University of Bristol, highlighting that the four firms posted an average of 237 social media posts daily. “This constant exposure normalizes gambling, increasing participation and risk among young and vulnerable groups.”
The university team reviewed 1,353 posts from these companies between July 29 and August 4, which were viewed nearly 29 million times. Of these, 1,012 “could be violating” the AGA’s responsible marketing code regulations.
During the same period, they identified 310 paid social media ads that complied with industry code. FanDuel and BetMGM did not comment, while DraftKings and ESPN Bet did not respond.
The AGA was “pleased” that all paid ads complied with its code. “However, categorizing all social media posts as advertisements ignores basic brand communication principles,” said Joe Maloney, AGA’s senior vice president.
The code covers “advertising of real-money sports betting services,” but only considers a social media post covered if it directly links to a real-money betting service.
For example, FanDuel Sportsbook’s account on X posted about tennis player Botic van de Zandschulp’s elimination by Carlos Alcaraz at the US Open, mentioning a $19,000 gain but with no direct link to the FanDuel platform or help messages.
“Betting operators, like other industries, share relevant content to maintain brand recognition without promoting specific offers,” Maloney explained. “Labeling the dissemination of sports facts or discussion topics as advertising subject to our code is an irresponsible interpretation.”
Maloney defended the responsible advertising practices of its members and emphasized their commitment to high industry standards, strengthening consumer trust.
The AGA’s marketing code, published in 2019 and updated in March 2023, includes guidelines to ensure operators’ digital media messages, including social media, comply with its provisions. The code emphasizes including responsible gambling messages and helpline numbers in each message where possible.
University of Bristol researchers found that 1,012 posts from the four companies lacked these messages. “Social media posts are clearly seen as advertising, sponsored or not,” Rossi said, arguing that the aim is to promote the brand.
The study suggests measures such as federal legislation to ensure consistent regulation of betting ads and detailed guidance on the AGA code. Maloney responded that legal operators already comply with state regulations and federal advertising standards, warning that federal regulation could hinder states’ ability to tailor policies to their market and strengthen the illegal market.
Edited by: @MaiaDigital www.zonadeazar.com
