NY Regulators Back Off Proposal That Unintentionally Prohibited Affiliated Marketing Business

New York gambling regulators have recognized that they may have been overly zealous in their efforts to control problematic sports betting advertising and promotions. They particularly acknowledge this in relation to affiliate marketers, including the parent company of playin-ny.

In January 2024, the introduction of online sportsbooks in NY resulted in an unparalleled surge in legal sports betting, transforming the Empire State into the foremost sports betting market in the United States.

Officials say that with the expansion of legal sports betting in NY, it is crucial to enhance responsible gambling initiatives.

NY sports betting rules aimed at operators, not affiliates

The New York State Gaming Commission responded to concerns and aimed to foster responsible gaming by introducing a set of regulations.

On Monday, at a public meeting, the NYSGC decided to revise a proposal that inadvertently aimed to prevent affiliate marketing businesses from receiving compensation. The original wording, which prohibited third-party agreements related to customer acquisition and retention, unintentionally impacted affiliates. After recognizing that affiliates were not the intended focus of the rules, the NYSGC made changes to the proposal’s language.

The staff of the gaming commission informed the board that it was legally acceptable to have fixed-sum compensation agreements according to state law. The staff of NYSGC suggested that affiliates should comply with the current statute.

Commission Chair Brian O’Dwyer acknowledged that the decision to permit third-party marketing, while potentially not novel, is the focus of our actions today.

Media transparency is always good

Affiliates were not let off without consequences. A further amendment mandates that affiliate marketers must disclose their business practices on their websites.

O’Dwyer stated that he and the commission will be keeping a close eye on affiliate marketers.

He stated, “I will personally scrutinize the marketing efforts in the upcoming six months to a year. Should I discover any substantial issues with this form of advertising during this period, I will approach the staff and my fellow commissioners to reconsider the rule and forbid third-party advertising.”

The sports betting rules package is currently being reviewed for inclusion in the State Register.

The intention behind the commission’s set of regulations for sports betting was to ensure that gambling operators are held responsible for their business practices, especially those that have faced public criticism recently. Specifically, online sportsbooks have faced backlash for deceiving customers, targeting minors, and imposing limitations on winning bettors. As a result, in March, the NYSGC decided to impose stricter limitations on sports betting advertisements.

According to officials, the regulations for sports wagering advertisements in states like Arizona, Massachusetts, Ohio, and Virginia have had an impact on New York’s ongoing efforts in this area.

Doing our part

Disclaimer: playin-ny operates as a regional website within Catena Media, a gaming affiliate marketing company. Below is an elaboration on the functioning process of playin-ny.

Catena Media’s content may contain affiliate links to partners in the online sports betting and online casino industry.

Affiliates function in a manner comparable to conventional newspapers, where content, editorial work, and news are distinct from revenue generation, circulation, and advertising. The majority of affiliate marketers in the gaming industry adhere to ethical reporting norms and methods. One such example is Catena Media, which employs numerous ex-journalists and accredited media professionals.