Sportsbook

Sports betting firms cut ad spending 21% in 2023

Friday 31 de May 2024 / 12:00

⏱ 1 min read

(Washington).- Consumers are seeing a lot fewer of the betting commercials that blanketed sports TV in recent years. Ads for sports gambling in the U.S. tumbled 21% last year, the first decline since 2016, as operators sought to reduce ongoing losses in the business.

Sports betting firms cut ad spending 21% in 2023

Spending peaked at about $1.4 billion in 2022, up from just $22.9 million five years earlier, according to a Nielsen study commissioned by the American Gaming Association trade group. The numbers exclude ads promoting daily fantasy sports sites.

Sports betting exploded in the U.S. after the Supreme Court in 2018 allowed its expansion beyond Nevada. Gamblers can now place wages in some 38 states. Companies traditionally spend heavily promoting their betting apps in new states, but began cutting back on marketing in the second half of 2022 under pressure from investors to turn a profit.

The industry is now coping with scandals and efforts to limit its marketing. NBA player Jontay Porter was banned for life last month after the league accused him of limiting his performance to win a bet. New York Congressman Paul Tonko, a Democrat, has introduced legislation that would ban sports marketing on any electronic medium, including TV, radio and the internet, citing in part a rise in problem gambling.

TV is the largest category for sports-betting advertisers, accounting for more than half of spending, according to the Nielsen data.

The American Gaming Association, whose members include casinos and betting sites like DraftKings Inc. and FanDuel, said sports betting accounts for less than 1% of national TV advertising, far less than fast food, alcohol, telecom and pharmaceuticals.

By Bloomberg News

Categoría:Sportsbook

Tags: Sin tags

País: United States

Región: North America