FanDuel Group has lobbied against rules that ban sports betting advertising near colleges and universities in the state, according to unredacted documents released by the New York State Registrar.
Updated sports betting rules were introduced in New York in October. This came after the New York State Registrar took into account the opinions of various licensees, including Flutter Entertainment’s FanDuel.
The ban on betting advertising near educational institutions now applies. However, Registry office documents now show that FanDuel has spoken out against such a move.
The Oct. 18 document states that FanDuel objects to a ban on advertising in “the area of a college or university campus.” This, the document states, could be interpreted to include “independent residential and commercial developments adjacent to a college or university campus.”
However, the New York State Gaming Commission disagreed. The regulator said advertising near colleges and universities could be viewed as an “offensive marketing exercise”. It added that a ban on such advertising would help prevent “predatory” marketing to minors.
FanDuel rejected other New York advertising rules
This wasn’t the only rule proposal that caught FanDuel’s attention. The operator also spoke out against a number of other measures in October.
FanDuel called for eliminating a requirement for reporting compulsive gambling aids in ads. It said such messages should only be required on the website and would take up “too much” space in ads. The operator also said any changes in New York would also mean adjusting its marketing in other states.
In response, the commission said such a requirement was “not inconsistent with state law.” It also said betting advertising in New York “should be appropriately regulated.”
FanDuel also spoke out against a measure that would hold operators directly responsible for “false, deceptive or deceptive” statements made by companies marketing their services.
However, the Commission defended its position. It states that operators should be able and willing to “appropriately” control the behavior of partners promoting their offering.
Website keyword dispute dismissed
FanDuel’s other concerns included banning the use of keywords that could attract problem players.
FanDuel said such a measure would be “impractical” to enforce and would be the equivalent of liquor stores not being able to advertise to people who may be alcoholics. The operator demanded that the measure be repealed or only applied to “known” problem players.
Again, the commission disagreed, saying licensees could take steps to eliminate certain words to limit the risk. The example given was that phrases such as “help with gambling problems” were not included in website keywords that would lead people seeking help to click through to a betting site.
“The proposed regulation would prohibit such deceptive conduct by licensees,” the commission said. “Limiting the rule to “known” problem players would not adequately address the problem.”
Fantasy sports are also an issue for FanDuel
A separate argument focused on daily fantasy sports, which were classified as sports betting. In this context, the Commission wanted to hold operators strictly liable if they allow banned persons to take part in their competitions.
FanDuel objected, but the commission stood. The regulator said it was “appropriate” for licensees to take responsibility. However, the commission also stated that it would evaluate each case individually based on its merits before deciding on a possible penalty.
Other areas of concern included certification by an independent testing laboratory that a registrant’s platform meets standards. FanDuel opposed the measure, but the commission says it is necessary to maintain public trust in the integrity of the system.
Additionally, FanDuel proposed eliminating anti-money laundering requirements entirely or submitting an annual compliance statement. However, the commission rejected the appeal.
FanDuel remains the market leader in New York
The release of the document comes as FanDuel once again takes the top spot in New York’s online sports betting market.
FanDuel saw the highest handles and sales totals in November. There was $923.4 million in online sports betting and $69.2 million in revenue.
New York also handled a record number of online bets in November. Consumers spent $2.11 billion on online sports betting in November, the highest amount ever wagered in a single month in a U.S. state.
Online sales for the month were $150.9 million. This was 9.3% below October’s record $166.3 million.