New Massachusetts Logo Rules Change for Sports Betting Operators

Article ByDavid Weir

June 30, 2023

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Posted in: Massachusetts Gambling News, US Gambling News, US Sports Betting News

The Massachusetts Gaming Commission (MGC) has passed a new rule that requires all standalone sports betting logos at the state’s sports venues to include the language “21 and over.”

The decision was approved by a 3-2 vote from the commission’s board on Wednesday. It has already sparked fiery statements of opposition from sports betting operators that advertise in Massachusetts stadiums.

The new ruling will cover advertisements in three stadiums: Boston’s Fenway Park (pictured), home of the Boston Red Sox MLB team, TD Garden, home of the Boston Bruins of the NHL and the Boston Celtics of the NBA, and Gillette Stadium in the Boston suburb of Foxborough, home to the New England Patriots.

Highly Diversified Companies

The decision is significant, as it marks the first time a U.S. state has required such a disclaimer for sports betting logos.

The rule was compromised from the initial proposal, which would have required the language on all sports betting logos.

The new rule goes into effect on Friday, and it gives sports venues and operators 90 days to comply.

The rule could have implications for other businesses that also participate in sports betting. Rising operator Fanatics, for example, is primarily a sports merchandise company.

Its representatives said that this association of a legal age limit could hurt the brand’s nonsports betting business.

“The proposed language in subsection (1) could have the unintended consequence of harming a company’s nongaming interests,” said Philadelphia based law firm Duane Morris, acting on behalf of Fanatics, in a letter submitted to the Commission.

“Due to the rapid growth of the gaming industry, new multi-dimensional and innovative companies are entering the gaming market. These highly diversified companies—such as Fanatics Betting and Gaming (which is part of the larger Fanatics group of companies)—will seek to develop their gaming businesses separate from their nongaming business verticals. The draft rule could adversely impact those nongaming verticals.”

Sports Teams Also Opposed

Not only did sports betting operators find fault with the new regulations, but also three of Massachusetts biggest sports teams.

The Bruins, Celtics, and Red Sox all submitted comments to the MGC expressing their opposition to the regulation in another letter published in the open meeting materials.

They questioned the necessity of the disclaimer, arguing that the display of a logo alone is unlikely to increase minors’ interest in sports betting.

They also pointed out the inconsistency of requiring a disclaimer for sports betting logos, but not for other products and services with legal age restrictions, such as alcohol or cars.

Several other sportsbooks, including the Boston-based Barstool Sportsbook, DraftKings, and WynnBet, also voiced their concerns over the regulation change.

Clear Limits

The new rule represent a bold step from regulators in Massachusetts, a state already known for its strict gambling advertising rules.

While the MGC believes this rule will help protect minors, others see it as an unnecessary hurdle for sports betting operators.

“Is it necessary to require a disclaimer accompanying an operator’s branding logo,” said the open letter from state sports teams. “When the operator’s actual website or in-person sportsbook will have very clear limits preventing minors from registering and placing bets?”