Marketing for Online Bookmakers in the U.S.

In smaller market cities in states that allow legal wagering on sports, there is a new marketing phenomenon taking place. Mom and dad are settling in to watch TV only to be bombarded with ads for online sports betting operators.

With the amount of money online bookmakers are spending on ads in local and statewide markets, the level of competition between bookmakers is reaching a level that is on par with the competitiveness between bookmakers in the U.K. Of course, this is all very new to the American consumer.

Indeed, the U.S. online gambling market is continuing to explode in terms of activity and growth. Most of the activity and growth is being driven by online bookmakers that offer wagering opportunities on sports being played all over the world. One would think the awareness of online gambling is very high considering the amazingly high number of people who turned to online gambling as a form of entertainment during the COVID19 pandemic.

Still, America's top online and retail bookmakers have taken to the airwaves to wage war for every last potential customer who is entering the marketplace.

The first-quarter numbers for 2021 are in and U.S. bookmakers spent a combined $153+ million in TV advertising. Most of that money was targeted to local TV channels in cities with close proximity to retail sportsbooks. In the 10 states where online sports betting is already legal, advertising dollars are being spent at the state level.

Leading the way in spending for the first quarter was FanDuel coming in at $57.7 million in TV advertising. That amount represents just over 37% of the total amount the entire industry spent for the quarter. Coming in second was FanDuel key rival DraftKings, an online bookmaker that had $43.6 million in expenditures related to TV advertising. Coming in at third and fourth respectively was BetMGM ($24.9 million) and BetRivers ($9.3 million)

Keeping an Eye on Online Gambling Marketing Programs

It's noteworthy that most of the aforementioned TV advertisement spending went into smaller local and regional TV markets. That makes perfect sense given the fact a national advertising campaign would mean nothing in states that have not yet legalized sports betting. It avoids any confusion residents in nonsports betting states might have about the access they have to online bookmakers.

For now and into the future, online sports gambling regulators will need to keep an eye on bookmaker TV advertising campaigns. They have to be able to recognize predatory advertisements that target teenagers and gamblers that might have a gambling addiction.

This has long been an issue in England where the UK Gambling Commission was forced to clamp down on TV advertisements from major operators that were using what the commission described as predatory practices.

There will come a time when the U.S. online gambling industry will need to come together to establish nationwide advertising standards for the industry. To date, there does not seem to have been any issues. However, rogue elements might be plotting to penetrate the U.S. online gambling community due to the vast interest Americans are showing in betting sports online.