Calls Coming for Nationalized Online Gambling Advertising Standards

As the U.S. online gambling market continues to grow, the push to regulate advertising for sportsbooks and casinos also grows. It's necessary to avoid predatory advertising techniques that might target minors and people who are struggling with problem gambling issues.

The time is fast approaching for the calls to be heard. In a nation where 50 gambling regulators are working independently to set the advertising standards for their respective states, confusion abounds. This has led to a lot of issues and misunderstandings, as these very standards tend to be all over the map. That's why the need is growing for the federal government to step in and set universal advertising standards.

Cooperation Among Operators and Advertisers is Paramount

With most states having a vested interest in how online gambling guidelines are set, there must be cooperation from each state regulator, licensed operators, and the companies that are creating the advertising content. Here are some of the components that should be targeted with nationwide standardized advertising guidelines:

• Clear definitions of what constitutes predatory advertising


• Established consumer protection measures


• Calls for increased transparency from operators and advertisers


• Standardized traditional (TV/radio) and digital advertising formats

Establishing standard advertising guidelines should lead to less confusion and more honesty and integrity at the operator level. After mixing in self-regulating efforts, the industry as a whole will likely be viewed as trustworthy, something that's necessary to motivate customers to participate in online gambling activities.

Focus on Enforcement and Compliance

It's never going to be enough to set standard advertising guidelines for the U.S. online gambling industry. There have to be enforcement measures in place to ensure compliance among interested parties.

It should start with the creation of a federal government agency that will be charged with establishing and ultimately enforcing guidelines. Of course, participation and cooperation at the state level would help to ensure that residents in every state are getting the protection they deserve.

The endgame is easy to define. Making sure advertising is informative and not predatory will shine a positive light on online gambling operators and the industry as a whole.

Tax Changes on Gambling Income

Federal regulators have certainly been busy on the tax side of the gambling industry. Thanks to a new provision in the recently passed One Big Beautiful Bill Act (OBBBA), gamblers are going to pony up taxes on their gambling activities.

In the past, gamblers were permitted to offset their gambling winnings with verifiable losses up to the extent of their winnings. Starting in 2026, they will only be allowed to offset 90% of their winnings, effectively having to pay income taxes of 10% whether they have net winnings on the year or not. That's right, this new "phantom tax" will be applied to gamblers whether they win money or not.

How will this affect retail and online gamblers? It's probably going to be a non-issue for recreational gamblers who don't often win enough money on single wagers to trigger the need for 1099 reporting. The gamblers who most likely will have to carry this new tax burden will be the high rollers who are often required to report on their gambling activities.