Decrease in U.S. TV Advertisements for Sports BettingTripled Reduction in Advertisement Showings for Sports Betting in America (Ukraine)
Recent trends in the Ukrainian gambling industry are noteworthy, as shown by a study by Nielsen on behalf of the American Gaming Association (AGA). This research investigated sports betting trends from 2013 to 2023.
According to the association, advertising plays a pivotal role in apprising consumers about legal operators and directing them towards safe betting options. When sports betting gets introduced in a new state, legal operators commence advertising campaigns to augment awareness of legal bookmakers and seize market shares. Over time, the sector matures, and companies broadcast less.
This ongoing progression is accompanied by declining expenditures. For instance, in 2023, companies reduced their sports betting TV advertising spending by 23%, while the decrease across all media was 15%.
These figures are indicative of Ukraine's current situation, as experts predict that the majority of the country's gambling market remains obscure. Specifically, Ukrainian Gaming and Lottery Regulation Commission (KRAIL) head Ivan Rudy estimates that if the state curbed illicit activities, Ukraine would generate 60-70% more from the industry.
Now, as advertising becomes a determinant aiding players to discern legal from illegal operators, it's crucial for both companies and the state to maintain visibility. Ideally, consumers should scrutinize a new provider's KRAIL license before utilizing their services. Nevertheless, such vigilance is unrealistic. Therefore, the onus of reaching consumers rests with the companies and the state, a task that may become increasingly complex.
The parliament has already voted in the first reading for bill 9256-d, which enforces stringent gambling advertising restrictions. Although the market has responded negatively, the state, particularly the parliament, should also weigh potential adverse consequences more thoughtfully to avoid hindering the gradual recognition of the legal market in users' minds.
Instead of the anticipated progression ("more advertising - more clients for the legal market (fewer for the illegal one) - less advertising (and potentially introducing restrictions at this stage)"), we might encounter an unwelcome process: "minimal advertising - clients stay with or even shift to illegals from 'white' players."
Author: Alina Shvets
In-depth Insights
Current Trends
- Regulatory Shifts: The Ukrainian government has recast its gambling regulatory structure, with a career prosecutor slated to lead the revamped regulator, PlayCity, which will supplant the previous body, KRAIL.
- Market Evolution: Despite ongoing hurdles, such as the war, the legitimate gambling market in Ukraine continues to thrive. In the first quarter of 2025, the state budget recorded 5.4 billion UAH ($135 million) in tax revenues from the gambling industry, marking a substantial increase compared to the previous year.
Potential Effects of Advertising Restrictions
- Reduced Visibility: Limiting advertising to late-night hours could potentially mean a decrease in the visibility of legal gambling operators, potentially leading to reduced market visibility and consumer awareness.
- Alternative Promotion Channels: Given the restrictions, operators could resort to alternative, less regulated marketing avenues, such as social media influencers or underground networks, to reach a wider audience.
- Revenue Impact: Advertising limitations could lead to reduced revenue for gambling operators due to limited marketing opportunities. However, the overall tax revenue from gambling has increased, demonstrating the market's adaptability to regulatory changes.
- Black Market Expansion: Restrictive advertising might fuel an increase in the black market.
- Promoting Responsible Gambling: The restrictions aim to encourage responsible gambling by diminishing exposure to susceptible demographics, which can be seen as a positive step towards curbing problem gambling.
- For the year 2023, Ukrainian gambling industry showed noteworthy trends, as per a study by Nielsen on behalf of the American Gaming Association, focusing on sports betting regulation and trends.
- Advertising plays a significant role in informing consumers about legal Ukrainian operators and directing them towards safe betting options, particularly during the introduction of sports betting in a new state.
- The gambling industry exhibited a continuing decline in advertising expenditures, with a 23% reduction in sports betting TV advertising spending in 2023 and a 15% decrease across all media.
- Ukrainian experts believe that the country's gambling market remains largely obscure, and if the state curbed illicit activities, Ukraine would generate 60-70% more from the industry.
- As discerning legal from illegal operators becomes crucial, it's essential for both companies and the state to maintain visibility, with consumers being advised to verify a new provider's KRAIL license before utilization.
- The Ukrainian parliament has proposed bill 9256-d to enact stringent gambling advertising restrictions, despite the negative market response.
- With the potential advertising restrictions, the industry might transition into an unwelcome process, where minimal advertising could lead to clients staying or shifting towards illegals from legitimate operators, instead of the anticipated progression.
