Report: FanDuel RG lobbying under scrutiny as New York comments surface

Lobbying practises used by FanDuel in New York have been called into question after a report by The Guardian found the firm had actively opposed increased responsible gambling controls in the state.

Documentation published in the New York State Register in October, reveal objections from FanDuel in several areas, most notably its urging that the New York State Gaming Commission (NYSGC) ditch a proposed rule to remove keywords or similar methods on a licensee platform to “attract persons…who are or may be problem gamblers.”

In its response, FanDuel stated that the requirement is impractical to enforce and that it is “analogous to a liquor store not being able to advertise to customers who ‘may be’ alcoholics.”

The firm suggested either eliminating that aspect of the rule or amending the rule to have it apply only to “known” problem gamblers. In both cases, the NYSGC disagreed with this objection, asserting that restricting the rule to “known” problem gamblers would not address the issue.

FanDuel also suggested the removal of an NYSGC requirement surrounding the inputting of problem gambling support and assistance messaging in its advertising, suggesting that the enabling statute used to require this was only applicable to an operator’s website, not its advertising.

Further, FanDuel stated that the rule would require its national marketing to accommodate New York-specific requirements and that the proposed requirements would take up too much space in an advertisement.

The firm also requested a more-specific threshold by which the prohibition of sports wagering advertising be applied where the “reasonably foreseeable” percentage of the viewing audiences is under the minimum age for betting is greater than the percentage of the population under that age.

The NYSGC objected to this due to the constant fluctuation of New York State’s population, something which would see the threshold require continual amendment.

FanDuel also objected to a ban on advertising in the “area of a college or university campus”, on the grounds that this “vague” language “could be read to include unaffiliated residential and commercial areas” nearby.

This objection was likewise dismissed by the NYSGC insofar as any so-called “predatory marketing” near campuses was unacceptable, regardless of whether the land was owned by the college or not.

In respect of affiliate marketing, FanDuel objected to an NYSGC proposal to make a licensee responsible for any false, deceptive or misleading statements made through an affiliate marketing partner, and any attempt to force affiliate marking partners to comply with rules preventing such statements.

“FanDuel stated that sports wagering operators should not be held responsible for compliance by their marketing affiliates. The Commission disagrees. Placing regulatory responsibility on the sports wagering licensee to control its affiliates should foster compliance,” the New York Register states.

While these objections were noted by the NYSGC, the proposed rules were ultimately accepted and became law in New York later in October.