National Consumers League Urges Ban on Sports Betting Ads via Smartphone Notifications

Rise of Sports Betting Advertisements on Smartphones

The United States National Consumers League (NCL) recently published a report highlighting a significant increase in online sports betting ads, specifically focusing on how these promotions are pushed through smartphone notifications. The organization is advocating for a prohibition of such marketing strategies, particularly the use of push alerts aimed at users.

Concerns Over Aggressive Marketing Through Push Notifications

The NCL’s report centers on the aggressive use of push notifications by sports betting apps to encourage betting activity. These notifications are sent directly to users’ smartphones and can appear at any time, demanding attention whether an individual is busy, resting, or on the move. Once enabled, these alerts tend to be persistent and hard to dismiss throughout the day.

Over a month-long evaluation, the NCL examined more than 100 push notifications from the leading sports betting platforms — FanDuel, DraftKings, and BetMGM. Their findings revealed that 93% of these notifications were promotional. Out of those, 62% contained explicit invitations to place bets, often featuring direct encouragements like “bet now.” Additionally, half of the messages offered incentives such as bonuses, free bets, or enhanced odds, offers which would largely be restricted under legislation supported by the NCL.

Unlike typical consumer products, sports betting carries substantial risks. The NCL emphasizes that gambling has well-documented links to serious consequences including increased rates of suicide, domestic violence, and financial hardship like bankruptcy.

Legislative Measures Proposed by the NCL

To address these concerns, the National Consumers League supports several legislative initiatives that aim to regulate and limit aggressive sports betting advertising.

At the federal level, the NCL backs the SAFE Bet Act, which proposes a ban on sports betting ads that feature promotional offers, restricts the use of artificial intelligence for creating personalized betting incentives, and limits the times when betting ads can be displayed.

On the state front, the NCL endorses the Regulating Addictive Notifications Act in the New York State Senate. This bill seeks to prohibit sports betting companies from sending promotional push notifications or text messages that encourage placing bets. In New Jersey, the NCL supports Assembly Bill A5207 which aims to ban online sports betting advertisements, including those within mobile applications.

Beyond legislative advocacy, the NCL is urging the Federal Trade Commission to investigate the use of push notifications as a marketing tactic, asserting that this practice may violate federal laws against unfair or deceptive business practices.