Connecticut lawmakers have introduced HB 271, a bill aimed at revising various gaming-related statutes in the state. A highlight of the bill is the several proposed changes to advertising practices. Connecticut appears to be taking a page out of neighboring states Massachusetts and New York’s advertising regulations, as one of the proposed changes under HB 271 is to restrict operators from entering into certain affiliate marketing deals. 

Connecticut is seeking to prohibit revenue-sharing marketing affiliate deals while permitting cost-per-acquisition (“CPA”) marketing affiliate deals. The bill’s language reads, “No master wagering licensee, online gaming operator licensee or sports wagering retailer licensee may enter into an agreement with a third party to conduct advertising or marketing on behalf of, or to the benefit of, such licensee that provides that compensation is dependent on, or related to, the volume of individuals who become patrons, the volume or amount of wagers placed or the outcome of wagers. A master wagering licensee or online gaming operator licensee may compensate a third party for advertising services based on the click through of an individual to an online gaming operator licensee’s Internet web site, provided such compensation is not based on an individual creating an account or placing a wager.”  

The recent push to restrict marketing affiliate deals to only allow CPA deals and ban revenue-sharing deals is fueled by responsible gaming concerns. It has been argued that such a model may lead affiliates to deceitful marketing practices in an effort to increase wagering by customers they attract to the operators they partner with.  

In addition to the proposed prohibition of revenue-sharing marketing affiliates, Connecticut has also proposed enhanced marketing guidelines that have recently been implemented in other jurisdictions such as Maine and Massachusetts. The proposed guidelines include:  

• Prohibiting the use of celebrities in sport betting advertising; 

• Requiring advertisements to state that individuals must be at least 18 or 21 years of age, as applicable, to participate; 

• Prohibiting sports betting advertisements where the majority of the viewers or participants are presumed to be under the age of 21; and 

• Banning advertisements/marketing via media or social media that would appeal primarily to those under the legal age to gamble. 

HB 271 has passed committee and has been sent to the House Floor for further consideration. Lawmakers in Connecticut have less than three weeks to pass the bill as the state’s General Assembly session ends May 8.