By Chris Gerlacher
Advertising restrictions in American sports betting markets are lenient. Popular bonuses called “risk-free bets” are allowed in most states even though the bets aren’t risk-free. Those bonuses require bettors to spend real money to earn site credits.
There’s nothing wrong with requiring customers to put skin in the game. But there is something wrong with calling a bonus that requires customer money “risk-free.”
Maryland sports betting law prohibits sportsbooks from “[engaging] in any false or deceptive advertising.” Many states share this regulation, but few explicitly prohibit “risk-free” advertising language.
However, Ohio has added language to its draft sports betting rules that prohibit false “risk-free” advertisements. Sportsbooks can only call an offer risk-free if it doesn’t require bettors to spend their own money.
Sportsbooks can still offer the type of promotion that’s commonly called a risk-free bet. They just have to call it something that doesn’t imply free money. FanDuel has already changed its risk-free bet to a “no sweat first bet.”
Sportsbooks can offer free site credits for signing up, too. Those may be the only credits that are labeled “risk-free” in Ohio.
Maryland can take this extra step to promote a responsible gaming environment. It clamps down on one of the most common advertising mistakes in the sports betting industry.
However, Maryland can follow Ohio a step further and prohibit another class of gambling ads.
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