The American Gaming Association penned a letter Monday opposing sports betting ad proposals in Maine that would be among the nation’s most restrictive.
The AGA reaffirmed its opposition to regulations prohibiting a wide range of sports betting advertising in a letter addressed to Maine officials published Monday.
The country’s leading gaming advocacy group wrote Maine’s proposals “will undermine a critical tool that the legal industry uses to inform the public about licensed operators, further empower illegal sportsbooks and limit the success of the legal market.”
“…It is important to avoid policy decisions that – even if well- intended – will ultimately undermine the ability of the regulated marketplace to compete against illegal sportsbook operators,” wrote Bill Miller, who signed the letter to the Maine Gaming Control Unit.
Maine regulators have proposed what would be among the most stringent ad restrictions of any of the more than 30 US jurisdictions with legal sports betting. Among those are prohibitions of ads featuring celebrity representatives; most major sportsbooks, including FanDuel, DraftKings, BetMGM and Caesars, have featured high-profile actors, athletes or other famous Americans in their marketing.
Each ad would also be subject to individual review by the MGCU. A final decision on regulations will come after a public comment period and review.
The AGA has made combating unlicenced regulators, particularly offshore gaming sites, a top priority. Since these sites are unable to broadcast ads on television broadcasts and other sporting events, the AGA has touted advertising as a way for bettors to identify legal books.
“Statutory and regulatory restrictions or bans will only impede the ability to inform consumers about the availability of legal sportsbooks and the tenets of responsible gaming, and strengthen the competitive advantage enjoyed by illegal betting operations,” Miller wrote.
Maine sports betting market
Maine’s regulation review comes ahead of the state’s mobile sports betting launch, which is projected for later this year.
The state’s 2022 sports betting law allows Maine’s four gaming tribes to launch online sportsbooks. According to regulators, the tribes can either combine for a license or do so individually, meaning there could be as many as four or as few as one legal online book in the state.
It remains to be seen which – if any – national operator would seek to partner with a tribe. Even before the introduction of the proposed ad restrictions, Maine’s small population and high tax rate were deterrents to market interest.
AGA President Bill Miller: …It is important to avoid policy decisions that – even if well- intended – will ultimately undermine the ability of the regulated marketplace to compete against illegal sportsbook operators.”
Maine gaming tribes could also potentially partner with third-party B2B tech providers to launch self-branded sportsbooks, a move gaming tribes in several other states have undertaken.
The 2022 law also permits retail sportsbooks as the state’s two major casinos, Penn Entertainment’s Hollywood Casino in Bangor and Churchill Downs’ Oxford Casino. Penn operates retail sportsbooks under its Barstool brand at multiple casinos in other states as well as a mobile offering in more than a dozen jurisdictions. Churchill Downs stopped taking single-game sports bets through its TwinSpires mobile app but still operates in-person books in several states.
New England sportsbooks see tough limits
Maine is set to join New England neighbor Massachusetts among a growing list of states with strengthening regulatory measures for its legal sportsbooks.
Massachusetts undertook one of the most thorough public reviews of any US jurisdiction when approving licenses for its sportsbooks. Bay State officials had initially proposed ad restrictions even more stringent than Maine’s. Officials are still pursuing a ban on affiliate marketing firms.
Though more than 30 sportsbooks publicly expressed interest in the state, only 10 are set to go live in the state by this year’s end. Bet365 and PointsBet both withdrew their respective license applications.
Maine and Massachusetts may still be the only states in the region with more than three legal sportsbooks.
Rhode Island, one of the first states to launch legal mobile sports betting, has only one legal betting option, Sportsbook Rhode Island. DraftKings is the only legal sportsbook in New Hampshire and one of three in Connecticut, along with FanDuel and BetRivers.
Vermont is the only New England state without legal sports betting but lawmakers are considering legislation during the state’s current legislative session.