For the second consecutive year, the volume and spend on sports betting advertisements has seen a decline, according to data released by the American Gaming Association (AGA). The industry group reported that total advertising spend on sports betting in the United States dropped by 6% in 2021, following a 21% decrease in 2020.
The decline in advertising spend comes amidst increasing scrutiny and regulatory pressure on sports betting operators to limit their marketing efforts, particularly towards vulnerable populations such as minors and problem gamblers. Several states have implemented stricter advertising regulations in recent years, including banning ads during live sports broadcasts and imposing limits on the use of celebrity endorsements.
The AGA’s report also showed a 10% decrease in the volume of sports betting advertisements in 2021, with the number of ads aired on television and radio falling to its lowest level since the legalization of sports betting in 2018. Additionally, digital advertising accounted for a smaller share of the overall spend, as operators shifted their focus to other marketing channels such as sponsorships and in-person promotions.
Despite the decline in advertising spend, the AGA noted that the total revenue generated by the sports betting industry continued to grow in 2021, reaching a record high of $10 billion. This indicates that operators have been able to reach and retain customers through other means, such as offering attractive sign-up bonuses, odds boosts, and other promotions.
In response to the decline in advertising spend, some sports betting operators have expressed concern about their ability to effectively promote their products and compete with larger companies that have deeper pockets. However, others have welcomed the shift towards more responsible marketing practices, arguing that it will ultimately benefit the long-term sustainability of the industry.
Looking ahead, the AGA predicts that the trend of declining advertising spend on sports betting will likely continue in the coming years, as regulators and lawmakers across the country continue to tighten restrictions on marketing practices. Operators will need to adapt and find new ways to reach customers while ensuring that their promotional efforts are ethical and in compliance with industry regulations.
