Sports Betting Ad Spend Up in the US, but Coming Under Scrutiny - Newstbt.com
With the booming of sports betting in the U.S., the advertising industry is projected to generate $2 billion in spend by 2023, a jump of 8% from the previous year, based on data from ad tech firm Disqo.
Since the 2018 Supreme Court decision allowing states to legalize sports betting, 37 US states have taken advantage of the newfound freedom and passed their own legislation. There has been an immense spike in the popularity of sports betting and its advertising, with DraftKings, FanDuel, and BetMGM all benefitting from large increases in customers. Analysts anticipate that 32 million US adults will be placing bets on sports online by 2025, which is around 40% more than the current figures. However, there are signs of pushback from some states, with New Jersey recently introducing a bill that would target certain sports betting and casino advertisements. This bill, S4021, was proposed by Senator Joseph Cryan and seeks to regulate ads which are seen as fraudulent, directed at underage people, or targeting people on a self-exclusion list.
Amidst reports of declining public approval with regards to gambling advertisement, the debate over global gambling advertising has been brought to the forefront. As the bill is not expected to be brought to committee until the autumn season, the spending of large amounts of dollars has been met with a lukewarm public sentiment in the various states. Various polls have shown that there has been a considerable negative response to the ads. Thus, global gambling advertisement requires deeper scrutiny and analytical investigation.
Global Gambling Advertising Under a Microscope
Beginning July 1, a sweeping ban on all gambling advertising will take effect in Belgium. According to the government, the move aims to ward off potential addiction and debt. Advertising on television, radio, and in magazines, newspapers, as well as online and through social media, will all be prohibited. Similarly, Australia is implementing sweeping restrictions, with leading wagering sports companies preparing for a total ban in the next four years. In mulling the restriction of adverts, Spain also joined the UK in banning gambling ads – The Guardian newspaper notably revealed the heightened risk of addiction and financial ruin associated with gambling.
In addition to Poland, the Czech Republic, the Netherlands, and Italy all having restrictions on gambling advertisements, Latvia, Moldova, Albania, and Kosovo have implemented an across-the-board ban on these kinds of ads. With all this in mind, ad spend has reverted back to its original state in the United States.
Ad Spend Back in the US
If you’re a fan of the NFL, it is likely that you have seen one or two advertisements. Football is the most popular sport in the US, and the NFL accounts for the majority of the betting ad expenditure. iSpot.tv reports that college football, NFL preview shows and NFL games make up more than 50% of TV advertising impressions related to sports betting. The NBA follows a long way behind with only 8%, then the MLB with 5% and the NHL with a tiny 1.3%. As various sportsbooks compete in the market, certain advertisers are taking careful notice of the impact of gender, as more women become interested in sports.
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