In October, New York implemented updated regulations for sports betting, following consultations with various licensees, including FanDuel, owned by Flutter Entertainment.
One notable rule prohibits sports betting advertisements near educational institutions.
However, FanDuel expressed its disagreement with this regulation.
On October 18th, FanDuel formally objected to the ban on advertisements in the “area of a college or university campus,” arguing that it might encompass unaffiliated residential and commercial zones bordering such campuses.
Nonetheless, the New York State Gaming Commission maintained its stance, asserting that ads near colleges and universities could be deemed “objectionable marketing efforts” and that this ban would help prevent “predatory” advertising aimed at underage individuals.
FanDuel’s objections extended beyond this rule.
They advocated for the removal of a requirement for compulsive-play-assistance messages in advertisements, contending that such messages should only be mandated on their website and not in advertisements due to space constraints.
FanDuel also expressed concerns about potential adjustments in New York impacting its marketing in other states.
However, the Commission argued that this requirement aligns with state law and ensures that betting advertisements in New York are properly regulated.
Another point of contention was the proposal to hold operators directly responsible for any “false, deceptive, or misleading” statements made by companies marketing their services.
FanDuel opposed this idea, but the Commission defended its stance, emphasizing that operators should be capable of appropriately controlling the conduct of affiliates promoting their offerings.
FanDuel’s concerns extended to the prohibition of keywords that might attract problem gamblers.
They argued that such a measure was impractical and suggested limiting it to “known” problem gamblers.
However, the Commission disagreed, asserting that licensees could take steps to restrict certain words, preventing individuals seeking help from being directed to betting sites.
Additionally, FanDuel disputed the classification of daily fantasy sports as sports betting and objected to the notion of operators being strictly liable for allowing prohibited individuals to participate.
The Commission upheld this stance, emphasizing that licensees should bear responsibility but would evaluate each case individually before deciding on penalties.
Further areas of contention included the requirement for an independent testing laboratory to certify platform performance and anti-money laundering requirements.
FanDuel opposed these measures, but the Commission maintained that they were essential to uphold public confidence in the system’s integrity.
Notably, FanDuel continued to excel in the New York online sports betting market, reporting the highest handle and revenue for November, with $923.4 million in bets and $69.2 million in revenue.
New York also experienced a record-breaking month in November, with $2.11 billion wagered on online sports, marking the highest amount ever bet in a single month in any U.S. state.
Online revenue reached $150.9 million, slightly below the previous month’s record of $166.3 million.