A pair of prominent Northeastern states this year have considered new regulations on affiliate marketing in sports betting, including the possibility of banning sports wagering advertising by certain third-party companies.
In February, the New York State Gaming Commission (NYSGC) approved proposed rules that would prohibit compensation of third parties based on the volume of customers, bets placed, or the outcome of the wagers. In Massachusetts, the state gaming commission prohibited affiliate marketers from entering into revenue-sharing deals with sportsbooks, but allowed other forms of advertising on a limited basis.
Since then, representatives of the affiliate marketers met with the NYSGC to state their case for why such limitations would effectively prohibit their businesses from being compensated. On Monday, the NYSGC approved a series of amendments that will allow affiliate marketing partners to conduct business with sportsbook operators for the time being.
The NYSGC also approved a set of proposed amendments to rules related to advertising by third-party sports betting advertisers, also known as affiliate marketers. The NYSGC will allow compensation for third-party marketers on a limited basis. (cont.)