NY Governor Signs Legislation Requiring Stronger Warnings In Gambling Ads

In a move aimed at addressing the growing concerns over gambling addiction, New York Gov. Kathy Hochul signed into law new legislation that mandates stronger warnings in gambling and sports betting advertisements. The legislation, S1550/A1118, requires all gambling-related advertisements, including those for mobile sports wagering, to include clear warnings about the potentially harmful and addictive effects of gambling.

This move expands on previous regulations, which required only the display of a problem gambling hotline number and didn’t cover online gambling.

The legislation also mandates that the New York State Gaming Commission collaborate with the Commissioner of Addiction Services and Supports to ensure that all gaming-related advertisements prominently display a hotline for problem gambling assistance.

“I want New Yorkers to be able to safely enjoy the activities they love, while proceeding with caution when necessary. I’m confident that with the signing of this new bill, New Yorkers will have easier access to the safety resources they need to better protect themselves from the grips of addiction.”

— Gov. Kathy Hochul

The passage of this legislation comes at a time when New York’s gambling industry is flourishing. After the 2013 constitutional amendment that authorized commercial casinos, the state has expanded its gambling offerings in rapid succession — even though online casino legislation remains elusive.

New York sports betting takes off

The introduction of sports betting, following the Supreme Court’s 2018 decision to strike down the federal ban on sports wagering, opened the door to a new era of gaming. Initially restricted to in-person wagering at casinos, sports betting in New York took a quantum leap in January 2022 when online sports betting became legal.

Mobile sports betting quickly became a significant revenue source for the state. New York emerged as the largest sports betting market in the country, raking in over $746 million in tax revenue from wagers in 2022. Last year, that figure increased to $861.8 million.

However, public health experts and addiction specialists have raised alarms about the potential for mobile sports betting and other online gambling to exacerbate problem gambling. The accessibility of mobile platforms has made it easier for individuals to place bets at any time, often with minimal safeguards to prevent addiction.

The legislation signed Tuesday seeks to address this issue by ensuring that warnings about the addictive potential of gambling are front and center in all advertising. The goal is to increase public awareness of the risks associated with gambling, especially as more people are exposed to enticing promotions and bonuses aimed at attracting new bettors.

Online casinos: the next frontier?

While New York has successfully integrated sports betting into its gaming portfolio, efforts to introduce online casinos have stalled in recent years. Proponents argue that online casinos in New York could bring in significant new revenue streams, while critics warn of the potential for widespread addiction.

Several lawmakers have expressed interest in introducing a bill that would legalize online casinos, following the example of neighboring states like New Jersey and Pennsylvania, both of which have seen significant tax revenue from iGaming. However, the issue remains contentious, with public health advocates calling for more stringent regulations before any further expansion of gambling.

Should online casinos be legalized in New York, the newly signed legislation would apply to it, as well.

Legislative impact and public health

Gov. Hochul’s signing of S1550/A1118 indicates a growing awareness of the potential societal costs of gambling. With more New Yorkers turning to their smartphones to place bets, the state is under increasing pressure to ensure that its gaming laws balance economic benefits with public health concerns.

The legislation is seen as a critical step toward that balance. It clarifies that mobile sports wagering advertisements are subject to the same rules as traditional gambling ads.

The New York State Gaming Commission, in collaboration with OASAS, will oversee the implementation of these new advertising requirements. Both agencies are tasked with ensuring that the new standards are strictly adhered to and that problem gambling resources, including the hotline number, are readily available to the public.