The new era of legalized betting is already underway in the United States, radically reshaping what it means to watch and enjoy professional and collegiate sports.
For many sports fans, the lifetime events of an annual Super Bowl desktop pool are already becoming a distant memory, with American online betting in sports across the country becoming as easy as downloading an app from your phone.
Some of the biggest sports betting companies, such as FanDuel and DraftKings, have unleashed a storm of advertising content, bringing in many customers, setting odds and taking bets. As long as you’ve walked past a billboard or used your TV or the Internet recently, chances are you’ve already been exposed to sports betting advertisements, such as casino free bets no deposit.
Since states still regulate how these companies can operate and give them wide latitude over what they can display in advertisements, the betting industry faces far fewer constraints than other industries, such as than tobacco and alcohol. Additionally, there are no rules for the sports betting industry and online casino advertising at the federal level.
Legal states and complexities
Free speech and interstate commerce protections in America can lead to several legal complexities. Without federal law, it can be difficult for a state to restrict advertising of NFL football, for example, which is regional broadcast.
Yet companies that operate in legal jurisdictions may promote their products in non-legal states, prohibiting the transmission of gambling information across state lines due to legal exemptions.
“Right now, businesses are relying on this exemption. With the advancements of the internet – fake IP addresses and people hiding their location – this could turn into something where the courts say these exemptions no longer apply, and we’re starting to see restrictions based on the Wire Act. — said Wood, a gaming attorney and partner at Vela Wood in Austin, Texas.
While this is a potential result of the current situation, the federal government has taken a fairly light-hearted approach to determining the motives for sports betting announcements going forward.
Gambling operators are battling for market share in an ever-growing number of states. After the Supreme Court’s decision to strike down the federal law that blocked sports betting in 2018, each state had to decide whether or not to legalize the industry. Currently, eleven states have allowed legal online sports betting in the United States in 2021, with New York leading and California expected to follow.
Spend big on advertising
According to BIA Advisory Services, operators are expected to spend up to $1.8 billion on sports betting and (online) casino advertising. Nicole Ovadia, vice president of forecasting and analytics, told the Wall Street Journal that online gambling ad spending could even stabilize at $1.9 billion the following year.
And with states like Ohio, Massachusetts and Maryland hoping to launch mobile betting by 2023, companies should invest in customer acquisition. As their advertising needs increase, the BIA estimates ad spend will reach over $300 million in New York City alone.
Social Media and Gaming Restrictions
As one of the favorite tools of cheap advertising, social media is a gold mine for businesses since their privacy policies generally do not discriminate against corporate promotional content. In fact, they encourage it.
However, since the Supreme Court struck down the state’s prevention law legalizing sports betting, many major social media platforms have also updated their rules, terms and conditions regarding the gambling market.
With Facebook and Instagram under the same umbrella, any advertising related to gambling, real money games, lotteries, games of skill, sports betting, bingo, poker or casinos must follow regulations additional. Advertisements may only be permitted with prior written permission that the Permitted Game will only target persons over the age of 18 and permission will be granted in the appropriate jurisdiction.
Twitter, on the other hand, has different guidelines regarding gambling and betting advertisements, depending on a country’s gambling restrictions in place.
As a new and emerging market, betting companies are the ones vying for consumer attention, and there are more and more outlets involved every day. Although advertising is the only tool available to betting companies today, as more states legalize some or all forms of gambling, things will change.
Players will be able to freely seek out and engage with no deposit casinos, bonus promotions and free bets instead of just being exposed to the advertising of these. Of course, it’s better to be advertised than not, but as companies increase brand awareness, their player bases will also increase – with or without advertising.