American Lottery: Out-of-control marketing and delayed regulation

From Super Bowl ads to TikTok information stream, the lottery ads are sweeping the United States and are gaining momentum. This change, which began with sporting and online gaming carefully, has now turned into an uncontrolled wave of marketing chaos, legal loopholes and Internet red.For many years, the United States was seen as a model of responsibility for promoting online lottery.Despite the slow pace of the process, at least on the surface it appears to be a step in the right direction. There are currently 39 states in the United States that legalize sports games and seven states that authorize online casino operations. These costly operating licences are mostly monopolized by large operators and cooperative platforms.

However, in the regulatory vacuum, the winning casinos and social casinos are rapidly emerging with legal loopholes — and small and medium-sized operators have been able to create platforms more easily. It is even more alarming that the headlines of the United States have become off-shore encrypted money casinos, which have resulted in an absurd expansion of marketing ecology far beyond the pace of regulation.The current state of affairs in the United States is strikingly similar to the evolution of Europe two decades ago.The legal system has been slow in the face of a flood of technology, making the industry always quick. The Malta Lottery Authority had enough licence to allow operators to cross the continent. Initially, only industry giants were able to compete, but as the cost of technology fell, numerous new players were rapidly inflowing. When users competed for the heat of war and marketing pressure grew explosively, European countries eventually had to adopt legislation to regulate advertising and secure taxes. The geometry of the effectiveness of these regulatory measures is uncertain, but it is true that they contribute to a virtuous evolution in the industry ‘ s ecology.But the United States is on a very different path, with a strict threshold of access running parallel to uncontrolled marketing.The Mainstream Sports and Entertainment Coalition occupies a gold advertising position, while a large number of guerrillas are emerging on TikTok and YouTube. The proliferation of web-based red marketing content has completely blurred the boundaries between entertainment and promotion. The creators of the “Casino King” daily gambling video are constantly replicating, while others are replicating the Las Vegas Net Red phrase to stand up for unregulated casinos. As a result, the gaming content has swept through major platforms like a tsunami, hitting millions of young American users daily.

The states of California, Montana, Connecticut and others have begun to strike hard, ordering that the casinos be banned. Although many consumer class actions were dismissed on the question of jurisdiction, the very essence of the dispute never touched upon the legitimacy of the lottery model itself. It is interesting to note that it is not just consumer rights organizations that call for regulation. Casino operators and formal online lottery brands who have already taken photographs also expect clear rules aimed at creating a level playing field and curbing what they see as unfair competition.Due to differences in the legislation of the Länder, there is a lack of regulatory framework at the federal level to date.This fragmentation management model is the same as in Europe. Even today, European countries maintain their own systems of rules, taxation and enforcement. After two decades of concerted efforts, the regulation of the gaming industry remains difficult. The harmonization of federal legislation, while providing for continuous regulation, enhanced enforcement and protection of the interests of all parties, is difficult to implement.

As the flow of funds continues to pour into the award platform, when marketing pressures break the threshold, the intervention of the United States regulatory authorities is only a matter of time. Unlike Europe, this time they have a front-end. The lessons and achievements of the European experience will be an important reference for the United States regulatory path. The regulatory era will eventually come, both in terms of tax erosion and consumer protection. The key is not whether or not to regulate, but whether the United States can truly learn from global experience — or, on a larger scale, repeat it.

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