In a recent poll, Billboard Insider readers identified regulations as the 3rd biggest risk in the out of home business, behind lease renewals and cyclical revenues. OUTFRONT Media’s 10-k highlights regulatory risk: “Government regulation of outdoor advertising, including any changes to such regulation, may restrict our outdoor advertising operations and our ability to increase the number for advertising displays on our portfolio.” There are four ways regulation is a risk to out of home companies.
A billboard ban
Four states ban billboards. Hawaii has banned billboards since the 1920’s. Vermont banned billboards in 1968. Maine banned billboards in 1978. Alaska banned billboards by voter initiative in 1998. Bans aren’t used much because 44 of the 46 states which permit billboards also have just compensation statutes so it would be prohibitively expensive to ban and subsequently remove billboards.
Amortization
Some governments try to remove billboards using a theory of amortization. The idea is that a billboard has earned enough money for its owner over it’s lifetime so that no compensation is needed for removal. See 4 arguments against amortization. No regulator would ever agree to amortization if their home was condemned for a road widening project. Billboards are no different. Cities occasionally try amortization. Courts in Texas (see Eller Media v City of Houston and Lubbock Poster co v city of Lubbock) have supported amortization. There is an ongoing amortization attempt in Wenatchee, WA. Wenatchee wants to amortize billboards by 2030. Tacoma, Washington’s amortization ban failed after in 2017 a costly legal battle. Bloomington tabled an amortization plan in 2023 due to concern over cost. Cities can’t use amortization on roads covered federal just compensation laws and are limited in using the tactic if their state also has a just compensation law.
Non-conforming status
A third approach is for a city to eliminate new billboard permits, declare all billboards as non-conforming and to require that when a sign is destroyed of damaged it must be removed. See Rothfelder on Repair of Storm Damaged Signs. The solution to non-conforming status is an aggressive maintenance policy in which you spend as much as you are allowed each year to keep signs in good condition.
Restrictions on Advertising
Cigarettes and smokeless tobacco advertising are prohibited in the US. Cannabis advertising is prohibited by some states and restricted in others. In May 2026 a bill was introduced in New York to prohibit gambling billboards. Several government authorities (e.g. city of Helsinki, city of Amsterdam, France) have banned fossil fuel ads. Lamar Advertising’s 10-k says “If additional content-based restrictions are implemented by governmental authorities, certain segments of our customers may not be able to utilize outdoor advertisng in the future, which would have a negative impact on our business…”
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