Kentucky residents will see their fair share of sportsbook advertisements in the coming months.
No sportsbook operator boasts a Kentucky sports betting license. But Gov. Andy Beshear hopes to launch the industry by the start of the 2023 NFL season. As a result, the Kentucky Horse Racing Commission will start awarding licenses soon.
Once those are divvied up, the ads will come like a tidal wave.
But with the incoming advertisement comes the question: What’s legal?
We’ve seen several sportsbooks fall under hot water, backtracking and retooling their promotional language after issues arise.
As with any new sports betting market, Kentucky doesn’t want to find itself in a controversy. Leaders want to get this right on the first go-around. And that starts with how these advertisements are worded.
Barstool Sportsbook’s ‘Can’t Lose Parlay’ under fire
Barstool Sportsbook, which has a unique opportunity to take a major chunk of Kentucky’s market share, is the latest operator to come under fire for its promotional language.
When the sportsbook entered Massachusetts in March, Barstool Sportsbook advertised a “Can’t Lose Parlay” surrounding college basketball conference tournament games.
The “Can’t Lose Parlay” is the brainchild of Barstool personality Dan “Big Cat” Katz. He frequently advertises his parlays on the hit podcast Pardon My Take while also being very open about his struggles as a gambler. A frequent Pardon My Take listener would be well-aware that Katz’s picks are humorous and not to be taken seriously.
But not everyone is a diehard Pardon My Take fanatic or knows Katz’s satirical backing.
The Massachusetts Gaming Commission held a hearing earlier this month to discuss the idea of branding a gambling pick as “can’t lose.”
“Katz (has admitted) that he is a terrible, terrible gambler, and a ‘loser who never wins at gambling,'” said Jonathan M. Albano, who defended PENN Entertainment, which owns Barstool Sportsbook.
However, the MGC Investigations Enforcement Bureau caught wind of the parlay after PENN VP and Chief Compliance Officer Chris Soriano self-reported the promotion. This led to the removal of the “Can’t Lose Parlay.”
In turn, the bureau conducted an investigation, which found that the CLP may violate rules “which prohibits not only unfair or deceptive branding, marketing, advertising, but also those that would reasonably expected to confuse or mislead patrons in order to induce them to engage in sports wagering.”
Barstool wasn’t the only sportsbook with questionable wording
FanDuel, one of the industry leaders, altered the language of its promotions just about a year ago.
The operator previously used phrases such as “risk-free” in its advertisements. Customers would wager money and receive more in promotional credit if they lost. For example, if someone made a $20 bet and lost, the customer would then receive $25 in credits from FanDuel online sportsbook.
Promotions moved toward verbiage such as “No Sweat First Bet.” And instead of advertising credits as “free bets,” language pivoted to “bonus bets.”
Issues popped up not only in Massachusetts with the “Can’t Lose Parlay” but in other states as well. Pennsylvania and Ohio have also cracked down on the term “free bet.”
BetMGM, Caesars and DraftKings received six-figure fines from the Ohio Casino Control Commission as a result.
In March, the American Gaming Association officially adjusted its Responsible Marketing Code for sports betting advertisements. The change banned any sort of “risk-free” indications. Operators were given a three-month grace period to complete the transition.
Why it’s important to include straightforward language in gambling promotions
There shouldn’t be any sort of gray area when it comes to the language of these promotional advertisements.
Even before its sports betting market launch, Kentucky took problem gambling seriously. There’s the Kentucky Council on Problem Gambling, which offers help options. There, individuals can connect with certified gambler counselors, who are available 24 hours a day, seven days a week.
Many states that currently boast legal gambling offer voluntary self-exclusion programs for those seeking help. One could expect Kentucky to have its own come this fall.
But just because there are these options in place, and like more to come, doesn’t mean it’s a reason to relax on the guidelines.
Not everyone is a gambling expert and well-versed in the traditional lingo. Much like how not everyone would know that the “Can’t Lose Parlay” comes with a layer of humor, not everyone is aware that something titled a “free bet” isn’t truly free.
Language must be crystal clear to avoid any confusion. It’s a key step in maintaining responsible gambling.
What type of sports betting advertisement rules could Kentucky implement?
Promotions, where users have the chance to secure bonus bets, won’t be labeled as “free bets.” Because, in all reality, customers need to spend some of their own money to earn any operator credit. These deals are not truly free.
Instead, Kentucky residents will likely see “bonus bets” or “no sweat first bets” leading up to the launch.
It’s important to note that Kentucky leaders met with officials from Massachusetts and Ohio, among other states. But those two, in particular, have cracked down in the past few months in regard to advertising.
In other words, Kentucky residents shouldn’t expect to see a “Can’t Lose Parlay.”
