U.S. sports betting ad spending is rising but under scrutiny
Sports betting has opened up an explosive new advertising market in the United States. U.S. sports betting ad spending is expected to be $2 billion in 2023, according to a study by ad technology company Disqo. This is an 8% increase from last year.
Since the Supreme Court's 2018 decision allowing states to decide whether to legalize sports betting, 37 states have now done so. Sportsbooks including DraftKings, FanDuel and BetMGM are expected to see even greater growth in their customer bases. Analysts predict that 32 million U.S. adults will gamble online by 2025, an increase of nearly 40% from 2022.
States regulate how sports betting operators operate, and while they have a lot of latitude, there are signs of some pushback.
New Jersey may soon consider laws targeting certain sports betting and casino advertising. S4021, introduced by state Sen. Joseph Klain (D-Union), specifically targets ads deemed to be deceptive, directly targeted to minors, or targeted to those on a self-exclusion list.
Although the bill won't be heard in committee until the fall, it comes at a time when interstate audiences appear to be taking a negative view of gambling advertising. While this may seem inconsistent with the dollar amount spent, some surveys show negative response rates to ads.
Global gambling advertising under the microscope
Gambling advertising is banned in Belgium from July 1st. The government said the move was to combat drug addiction and debt. The ban applies to television, radio, films, magazines and newspapers. Online advertising and social media will also be banned.
Australia also plans to severely restrict advertising. In fact, some of the country's largest media and betting companies are awaiting a blanket ban. A much-anticipated report from the Parliamentary Standing Committee on Social Policy and Legal Affairs based on research into gambling harms is expected to be launched within four years.
In the UK, The Guardian recently announced it would no longer publish gambling ads. The daily highlighted the increased risk of gambling addiction and possible financial ruin.
Spain is also currently studying the impact of advertising restrictions. Additionally, gambling advertising restrictions apply in Poland, the Czech Republic, the Netherlands and Italy. Latvia, Moldova, Albania and Kosovo also have total bans on gambling advertising.
Advertising Spending in the United States
If you're an NFL fan, you've probably seen a commercial or two. Football is king, and the NFL accounts for the majority of U.S. gambling ad spending. According to iSpot.tv, college football, NFL previews and NFL games account for more than half of sports betting ad TV impressions.
The NBA is a distant second, at about 8%. MLB ranked third with 5%, followed by the NHL with 1.3% of ad impressions.
As sportsbooks try to gain market share, some advertisers are taking a closer look at the role of gender in addressing the development of women's sports.
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Source: www.casino.org
