A new study commissioned by the American Gaming Association (AGA) found that sports betting operators have cut advertising spending by more than 20% in 2023. The Nielsen study also found that sports betting advertising fell for the second year in a row. At the same time, income in the sector increased by 10% compared to the previous year.

Advertising budgets are declining from their 2022 peak

Total gambling advertising spending has fallen 14% from a peak of $2 billion in 2022. When looking at sports betting advertising excluding fantasy sports , spending fell 21% year over year, from $1.4 billion the previous year to less than $1.5 billion in 2023, according to the study.

Spending on television advertising, the dominant form of gambling advertising in the United States, fell for the second year in a row, with gambling operators spending 15% less on television advertising in 2023 compared to the previous year. In the sports betting sector, 64% of spending came from TV advertising last year, and the amount spent on sports betting advertising fell from just over $800 million in 2022 to almost $600 million in 2023. 

The more states legalize betting, the less advertising

Currently, 38 states offer regulated sports betting , and as more states legalize betting, advertising will decline as operators focus on national campaigns rather than local efforts, according to the study.

The total number of ad units related to sports betting was down 4% year over year and down more than 20% since its peak in 2021. TV advertising related to sports betting fell 11% year over year, and total TV advertising fell from a peak of $2 million in 2021 to just under $1.5 million last year.

The study also found that sports betting will account for less than 1% of national television advertising in 2023, behind fast food, alcohol, telecoms and pharmaceuticals over the same period. For every sports betting ad on TV in 2023, there were more than three telecom/wireless ads, eight for fast food and 31 for pharmaceuticals. 

Lawmakers call for an end to sports betting advertising

Sports betting operators could spend even less on advertising if lawmakers get their way. In March, U.S. Representative Paul Tonko introduced federal legislation aimed at regulating gambling as a public health issue. As part of the SAFE Bet Act, the bill would seek to ban sports betting advertising during sporting events.

Tonko's latest proposal is a new version of his Betting on Our Future Act , which he introduced last year. The 2023 version would ban all online and electronic sports gambling advertising. Additionally, in Louisiana, House Bill 727 would ban sports betting advertising on television statewide, and in Kansas, a new bipartisan bill seeks to prohibit sports betting operators from advertising in online media and on electrical devices.

Releasing the findings of the study, the AGA said legal sports bookmaker advertising plays an important role in educating customers about legal betting operators and helping to switch consumers to safe betting options.

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