Sports betting advertising—how marketers can appeal to a divided gambling audience

The Supreme Court permanently changed the face of sports—and relatedly, gambling and advertising—five years ago when it struck down a 1992 law limiting legalized betting, clearing the way for the pastime in every state in the country. Much has changed in those five years: 33 states (plus the District of Columbia) now have live, legal betting markets and it’s coming in others that legalized it but have not actually started yet. Every major sports league has official betting partners and 11 professional sports stadiums have in-house sports books. We’ve come a long way from, “Say it ain’t so, Joe.” Unsurprisingly, gambling has grown explosively, with $8 billion wagered in the first 12 months after the court opened the way and more than 10 times that ($90 billion) bet from May 2022 through April 2023. At the same time, calls to the national problem-gambling hotline rose 15% over the period. And while no NFL football players were suspended for gambling in the 10 years leading up to the court decision, 11 have been in the last two years. “There’s a responsibility for these leagues to invest more education, not just our own players, but of young people who might be doing something inappropriate or anybody who might be engaging in problematic gambling,” NBA Commissioner Adam Silver said recently. Sign up for Ad Age newsletters From influencer marketing to agencies, get the latest news and analysis delivered to your inbox Click here One of the few aspects of gambling and sports that the decision did radically alter is U.S. public opinion. “Americans have never been of one mind about gambling and attitudes have swung back and forth,” Justice Samuel Alito wrote for the court then. Recent Harris Poll surveys confirm that this country still has a conflicted view of gambling and give insights into how advertisers can best navigate this tricky issue. Nearly two-thirds of Americans (63%) believe that sports betting ought to be legal. At the same time, only 54% view sports betting positively, 58% believe that sports betting should not be widely promoted (on media such as TV and the internet) and a surprising 71% oppose sports teams partnering with sports betting companies. Professional sports leagues and media outlets can sense these conflicted attitudes, which is why they took the step of forming a coalition in the spring aimed setting up guidelines for gambling advertising, including that it does not target children. In this regard, the nation seems to be going through a microcosmic version of its long reconciliation with alcohol after the repeal of prohibition, which involved reluctantly acknowledging that while some find alcohol unpleasant, banning its consumption is impractical. It took the country 40 years to return to pre-prohibition levels of liquor consumption. All of this leaves a tricky environment for advertisers. Our recent research produced three insights which will help them figure out the best approach: Attitudes are swinging toward gambling While the U.S. remains deeply split, as noted above, betting is clearly on a hot streak. Nearly two in five gamblers (38%) placed their first sports bet in the past year, which is more than got started in the four years prior (32%) or any time before that (30%). What’s pushing people to place bets? The most oft-cited reason is making money (49% of those surveyed offered it), followed relatively closely by making watching a game more exciting (43%) and because friends are doing it (42%). The first reason seems both baked into gambling and not an aspect to stress in gambling advertisements, since not for nothing is the operative phrase “the house always wins.” But those wishing to broaden the activity’s appeal can lean in on the socially oriented reasons of boosting the fun of watching a game and doing something one’s friends are also doing. In fact, 88% of Americans agreed betting on a game makes it more fun to watch. Bet carefully when it comes to women There are distinct differences between men and women on the subject of gambling. While three in five men (61%) have a positive view of it, women are more divided, with 52% having a negative view and 48% having a positive one. Women far less often report participating in sports betting, with only 9% saying that they do so (as opposed to 26% of men). They also less often approve of legal sports betting (68% of men say it should be legal compared to 59% of women). These attitudes may change. And the fact that a majority approve of gambling being legal even if they don’t like it demonstrates room for growth among women. But in the immediate term, gambling marketers should be cognizant of the fact that men present a far more receptive audience. Different phases, different games Sports betting tends to be something of a younger generation’s game. Only 8 percent of baby boomers (Americans aged 58-76) bet on sports, less than half the national average (17%). Millennials (26-41) are the biggest generational consumers of sports betting, with more than a quarter participating. It’s not the only area where millennials are sports betting’s biggest boosters: It’s the generation most often supportive of legalized sports betting (70% versus 55% of boomers) and has the most positive opinion of the practice (68% versus 41% of boomers). The younger market doesn’t have older generations’ hesitancy around gambling, making it a more amenable group. Of course, they also haven’t had a major gambling-related sports scandal, which could change matters. Subscribe to Ad Age Sign up now for the latest industry news and analysis Click here

Sports betting advertising—how marketers can appeal to a divided gambling audience

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