Posted on: February 10, 2022, 10:47h.
Last updated on: February 10, 2022, 10:47h.
With more states approving mobile sports wagering, it stands to reason sportsbook operators are engaging in more advertising and data confirm they’re paying up for the privilege.
Nielsen, the television ratings firm, said the cost of television ads for internet gaming, sports betting and related services swelled to $725 million last year, more than double the $292 million posted in 2020. That means that in just three years since the Supreme Court ruling on the Professional and Amateur Sports Protection Act (PASPA), gaming operators are spending more on TV ads than cereal companies, according to Barron’s.
The Nielsen data arrive just a few days before Super Bowl LVI with broadcaster NBC saying it’s commanding record pricing for this year’s iteration of the big game. The network is charging $7 million per 30-second to late-arriving advertisers and noted its allotment of ad space sold out across the NBC, Peacock and Telemundo platforms.
Caesars Entertainment, DraftKings and FanDuel are the sportsbook operators to running ads during this year’s Super Bowl.
Big Growth Ahead
The aforementioned $725 million gaming companies spent on TV advertising is likely to continue growing and in considerable fashion.
That’s a full-year figure and doesn’t account for an entire 12 months of sports betting be live in a slew of states that recently approved the activity. For example, mobile sports wagering recently went live in New York — home to the largest media market in the US — indicating the 2022 advertising figure is likely to be significantly higher than last year’s total.
Additionally, Arizona, Connecticut, Louisiana and Maryland, among others, are recently joined the lineup of states permitting mobile sports wagering.
Thirty states and Washington, DC are currently in the live and legal fray.
In some states, gaming companies ramping up betting-related ads is catching the eyes of regulators. For example, some policymakers in New Jersey describe the level of sports betting ads on the airwaves there as overwhelming.
Experts argue the spate of gaming ads could lead to problematic issues, including betting by minors and relapses among those dealing with gambling addiction.
“They’re fair concerns, and certainly something that the industry is well aware of, paying close attention to,” said Casey Clark, senior vice president of strategic communications at the American Gaming Association, in an interview with Barron’s.
For its part, the NFL has a limit of six sportsbook advertisements per broadcast. The league’s official sportsbook partners are BetMGM Caesars, DraftKings, FanDuel, FOX Bet, PointsBet, and WynnBET.