This year, operators across the industry have shown strong support for Problem Gambling Awareness Month (PGAM) and the National Council on Problem Gambling (NCPG) that organizes it. Flutter-owned Fanduel demonstrated their commitment to addressing problem gambling by donating $100,000 to the NCPG’s Agility Grants program. This donation will help further support responsible gambling initiatives. NCPG executive director Keith Whyte praised the widespread involvement of operators like Caesars, FanDuel, and BetMGM, who have announced significant responsible gambling programs and commitments during PGAM. There has also been a notable increase in grassroots support at the state and local levels.
However, some advocacy groups and politicians have expressed concerns about the increasing legalization of sports betting in the country. Representative Paul Tonko recently introduced the Betting on Our Future Act, which aims to prohibit the advertisement of sportsbooks on electronic platforms under the jurisdiction of the Federal Communications Commission (FCC). Tonko argues that certain marketing tactics promoting “risk-free” or “no-sweat” bets are predatory and potentially harmful.
Despite the concerns raised, industry-wide advertising budgets have been decreasing, with the exception of FanDuel’s $1.0bn marketing spend last year. Nevertheless, Keith Whyte, executive director of the NCPG, believes that the volume of sportsbook advertising poses a risk. The NCPG estimates that the risk of gambling has increased by 30% between 2018 and 2021 due to the growing popularity and legalization of sports betting in the US. Whyte mentioned that both consumers and legislators have been reaching out to the NCPG expressing concerns about the excessive sports betting advertisements on radio and TV.
To raise standards and promote safer gambling practices, Whyte suggests that operators and legislators should implement third-party assessment and compliance procedures. He also emphasizes the importance of voluntary harmonization of regulations across both state and independent operators. The current fragmented approach to responsible gambling standards in different states creates difficulties for both operators and consumers, making it necessary to establish unified practices and a national helpline number for problem gambling assistance.
While progress has been made in promoting safer gambling practices, there is still room for improvement. Keith Whyte acknowledges that legislative measures may be necessary to drive further change. The NCPG is actively involved in the creation of the Gambling Addiction Recovery, Investment and Treatment (GRIT) act, which proposes allocating 50% of preexisting sports betting excise tax towards problem gambling help. This act does not introduce a new tax but rather redistributes existing tax revenue to mitigate gambling-related consequences.
As the political landscape for gambling evolves, there is a demand for responsible allocation of funds to address problem gambling. Washington DC’s decision to remove funding for problem gambling services from the proposed budget for 2024 has faced criticism. The American Gaming Association (AGA) argues that this is a misstep that hinders the development of a viable legal sports betting market. In response, the NCPG and various gambling operators have intensified their efforts to pressure the government to reverse this decision.
Keith Whyte acknowledges that setbacks can occur in advocacy work but emphasizes the importance of persevering and redoubling efforts. Despite the challenges, the NCPG remains dedicated to continuously working towards addressing problem gambling.
