Sports Betting Advertising Soared Last Year, with More Expected
Betting
There’s no denying that legal sports betting is exploding throughout the United States. And along with an increase in legalization and interest from bettors has come a significant blitz in advertising.
A recent report published by iSpot.TV showed that, between September of 2021 and May of 2022, sportsbook operators in the U.S. spent roughly $282 million total on television advertising. That spend resulted in 18 billion total impressions, as sportsbook operators compete for the same customers in states throughout the country.
While this could all be seen as a good thing for business and local economies, some industry professionals are worried about how much advertising there is, and what messages are being sent.
The Advertising Figures
Year-over-year, the total TV advertising spend by sportsbook operators increased a whopping 281%. Impressions in that same time increased by 48.4%.
With more and more states working toward legalizing sports betting, it’s likely that there is significant room for growth for these stats. Currently, 20 states allow mobile sports betting, representing 40% of all states in the country. While not every state will allow mobile sports betting, there is still a huge opportunity for significant growth.
More than one-third of all the TV advertising conducted by sportsbook operators were on local ads. A big reason for this is the different laws that pertain to legal sports betting from one state to the next. As more states legalize sports betting, though, industry experts believe that the national spend by major sportsbook operators will continue to grow.
FanDuel accounted for the largest share of the advertising, with 34% of the total impressions. Caesars was next at 21.7%, followed by DraftKings (18.6%), BetMGM (13.4%) and FOX Bet(7.5%).
Caesars accounted for nearly two-thirds of the national ad spend from November 1 to the Super Bowl this past February, as they focused highly on NFL betting.
Some Industry Professionals Warn Against Advertising
While many would consider the large increase in advertising spend and impressions a good thing, there are some that are setting off warning signs. As early as last fall, a top official with the New Jersey Division of Gaming Enforcement said that some of the marketing that was being done by sports betting operators was being done “unchecked.”
David Rebuck, the director of the NJDGE, said he was concerned about how much advertising was being done. He was also concerned with what he called “overly confusing terms and conditions” for bonuses that the sportsbooks were offering to entice new players. And, he was concerned the sportsbook operators weren’t focusing enough on responsible gaming in their advertisements.
Over in Colorado, Dan Hartman — who holds a similar position in his state to Rebuck in New Jersey — said many legislators there had expressed concern about how much sports betting advertising was taking place.
One of the big thing Hartman said that sportsbook operators need to do is find a good balance between marketing their products and not over-doing it. It’s possible that if they don’t, states could come in and try to legislate and restrict the advertising in some way.
For now, this is an argument around legalized sports gambling that was bound to happen. Whether anything legitimate will move forward from it remains to be seen. Until then, expect sports betting operator advertising to continue to increase in the fight for new players.
What do you think?
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