Illinois Expanding Regulations over Gaming Ads

By: Jordan Briggs

The Illinois Gaming Board (“IGB”) adopted a new proposed uniform advertising regulation for sports wagering, casino gambling, and video gaming operators at its September meeting. Sports wagering is already subject to certain advertising and marketing restrictions, captured in “Rule 340.”[1] IGB proposed amendments to strengthen Rule 340 for sports wagering, and, for the first time, proposed to extend Rule 340 to casino gambling and video gaming operators. These amendments are designed to create a uniform approach to marketing regulations across all gaming verticals.

Currently, Rule 340 makes each licensee responsible for “advertising and marketing done on its behalf or to its benefit” and covers, but is not limited to, physical mail and email, telemarketing, broadcasting, billboards and signs, internet advertising, and referral programs. A majority of Rule 340 focuses on making sure that advertisements are not targeting people under 21 years old, the legal age for gambling in Illinois. For example, advertisements cannot feature anyone who even appears to be under 21. Additionally, advertisements must include problem gambling language, and direct marketing must include the option to unsubscribe. Finally, licensees cannot base compensation for third-party advertisers on the volume or outcome of wagers. Under the proposed rules, these provisions would now apply to casino gambling and video gaming operators in addition to sports wagering.

The proposed rules would also add that all advertising materials published, aired, distributed, or displayed in, or targeted to Illinois, by or on behalf of a sports wagering, casino gambling, or video gaming licensee or applicant:

1. Shall not contain false, deceptive, misleading information;
2. Cannot promote gambling as free of risk in general or in connection with a particular promotion or offer;
3. Shall not describe gambling as free, free of risk, or any similar language if the patron needs to incur any loss or needs to risk the patron’s own money to use, obtain, or withdraw patron’s own winnings;
4. Shall not be published, aired, etc. on any college or university campus or media outlets or in any sports venue used primarily for college or university events;
5. Shall not depict college or university settings;
6. May not include logos, brand names, and the like on clothing, toys, games, or game equipment intended primarily for persons below the age of 21;
7. To the extent that the materials are products which contain branding, must, through commercially reasonably efforts, only be distributed to those who have reached legal age for gambling in Illinois, which is 21;
8. May not include gambling brands, logos or messages on websites, printed pages, or any medium directed to those seeking information on problem or responsible gambling; and
9. All direct marketing must allow each patron the option to unsubscribe or opt out, which must be completed by the distributing party as soon as practicable.[2]

IGB approved the submission of these proposed rules to the Illinois Secretary of State and invited public comment on the proposal.

Of note, most of the proposed advertising requirements are not surprising or revolutionary to operators. The industry was very active in responsible gameplay awareness last month—Responsible Gaming Education Month—but almost all sports wagering operators comply year-round with regulations, laws, and best practices similar, if not identical, to those newly proposed in Illinois. And operators in other gaming verticals are familiar with regulatory and third-party requirements to promote responsible advertising practices. For example, American Gaming Association members post a pledge to their patrons to promote responsible gaming, advertise responsibly, and prevent underage gambling.[3]

Additionally, operators within Illinois should not be surprised by any of these changes. As noted above, Rule 340 already prevents several forms of advertising to those under 21. The state similarly regulates advertising of other age-restricted materials. Advertisements for alcohol cannot “make use of any material which would make a special appeal to juveniles” and cannot “contain any material which is false or untrue in any respect.”[4] The IGB’s proposed rules capture the same core concepts, just with more specificity about how to avoid advertising to those who are underage and what constitutes false or deceptive advertising.

However, gaming regulations are different state-to-state, and an operator runs the risk of missing a regulatory requirement if it only complies with best practices and does not review the law of each state in which it operates. Further, advertising requirements within each state can differ based on the gaming vertical. To complicate the process further, gaming verticals can be defined differently state-to-state. Therefore, an operator should review each state’s definitions and terminology to determine the appropriate terminology before it can determine which regulations apply to its gaming offerings in that state.

For example, in New Jersey, sports pool operators are required to include responsible gaming language in advertisements,[5] while internet gaming operators should adhere to the published best practices for advertising,[6] and casinos must adhere to separate advertising criteria.[7] In North Carolina, where sports wagering is newly legal, a more comprehensive advertising regulation prohibits sports wagering operators from advertising to people under 21 years old, requires advertisements include the identity of the operator, and restricts advertisements from making inaccurate or misleading statements about winnings, among other requirements.[8]

Accordingly, gaming operators, whether offering sports wagering, casino gambling, video gaming—or an equivalent term based on the state in which they operate—are encouraged to review the advertising and marketing statutes and regulations for each type of gaming they offer in each state they operate. In Illinois, at least, operators may have one less factor to check if the proposed rules take effect and make advertising requirements more uniform within the state.

[1] Ill. Admin. Code tit. 11, § 1900.340, available at https://www.ilga.gov/commission/jcar/admincode/011/011019000C03400R.html (last accessed Sept. 30, 2024).

[2] This proposed rule list was collected from the video recording of the September 12, 2024 IGB meeting. This list is not a direct transcription of the proposed rules as read, and the wording has been minorly edited to fit in this blog. The video recording of the meeting with closed captioning is available at https://www.igb.illinois.gov/ViewMeetingVideo.aspx?BoardDate=9/12/2024%2012:00:00%20AM. The proposed rules are Proposed Rule 3000.680 for casinos gambling, Proposed Rule 1800.370 for video gaming, and Proposed Amended Rule 1900.340 for sports wagering.

[3] “Member Code of Conduct,” AGA, available at https://www.americangaming.org/member-code-of-conduct/ (Jan. 3, 2019).

[4] Ill. Admin. Code tit. 11 § 100.50(b), available at https://ilga.gov/commission/jcar/admincode/011/011001000000500R.html (last accessed Sept. 30, 2024).

[5] N.J.A.C. 13:69N-1.8(g).

[6] Available at https://www.nj.gov/oag/ge/docs/BestPractices/AdvertisingBestPractices.pdf.

[7] N.J.A.C. 13:69C-14.2.

[8] More requirements for operators advertising sports wagering in North Carolina can be found at 24 NCAC 06A .0900 et seq.