U.S. Sports Betting Advertising Is The ‘Wild West’
An alarming new study of social media advertisements from the leading online gambling companies in the U.S. paints a bleak picture of the industry heading into football season.
The University of Bristol study, which examined social media ads from BetMGM, FanDuel, ESPN Bet and DraftKings, was conducted from July 29 to Aug. 4, 2024. This period included the build-up to the start of the NFL preseason on Aug. 8.
The platforms monitored by the study were Twitter/X, Instagram, TikTok and Facebook.
The study looked at both “organic” and paid-for ads. Across organic and paid-for ads, 1,663 were posted by the four gambling brands during the week, averaging 237 ads per day. The ads generated more than 29 million views across the platforms.
It’s worth noting that both social media and betting apps thrive on push notifications, which fuel compulsive use among many app users. The study didn’t look at how many ads were notifications.
The NFL preseason is when many problem gamblers become (re)engaged with online gambling apps, so betting companies are especially aggressive when football resumes. Research has shown that the majority of NFL bettors experience problems.
Organic Gambling Ads Problematic
According to researchers, about 1,300 ads were organic and about 300 were paid.
Three-quarters of the organic ads (1,012) contained no responsible gambling messages or addiction help hotlines, the study found.
The responsible gambling (RG) model is flawed, as it puts the onus on individuals struggling against an addictive product. Still, an RG message is the bare minimum an online sportsbook brand can provide to at least give the pretense of care. Most organic ads didn’t even go that far.
The authors found the lack of RG and hotline information to be “potentially breaching AGA advertising regulations.” No real federal oversight exists for betting industry ads.
There is loose and porous oversight of the sports betting industry at the state level.
The academics also found that 8% of organic ads (102) strongly appealed to minors due to their use of youth-targeted content, suggesting another breach of AGA advertising regulations.
The legal age in most states that have sanctioned online sports gambling is 21, but surveys have shown many underage individuals can access betting apps through family or friends. Gambling on college football and basketball is especially popular among underagers.
Gambling Industry Doubles Down
The American Gaming Association, representing the online sports betting industry, lashed out to dispute the conclusion about RG messages. The AGA claimed, according to a report from The Guardian, that its advertising guidelines contain the clause “where practical.”
“Like companies across other industries, sports betting operators provide relevant, engaging content to customers designed to maintain brand awareness without promoting a specific offering covered by the code, like sports betting,” said an AGA representative. “To describe the sharing of sports facts, schedules or discussion topics via posts on social media platforms as advertising and thus applicable to our code is an irresponsible misinterpretation.”
Yes, the AGA inexplicably used the word “irresponsible” to refer to gambling-harm researchers. The AGA has a history of aggressively responding to criticisms of the gambling industry.
The study’s authors also found that the sports betting ads could violate federal guidelines. Nearly 60% of organic ads (784) were not identifiable as advertising.
“This may indicate a violation of Federal Trade Commission (FTC) guidelines on ad transparency,” the study said. There have been other allegations of misleading betting ads.
For example, DraftKings Sportsbook faces a class-action lawsuit in Massachusetts over an ad for a so-called gambling “bonus” that appeared on TV, radio and social media.
The AGA has opposed federal law to regulate online sports gambling industry advertising.
Ways to Reduce Gambling Ad Harm
The authors proposed a handful of measures to help protect vulnerable people from online sports betting. The suggestions come at a crucial time for many millions in the U.S.
According to GamblingHarm.org analysis of other survey findings, 30-40% of online sports bettors experience problems, with the rate being higher for NFL online bettors.
Here’s what the University of Bristol study authors suggested:
A ban on gambling content marketing across social media should be considered given the potential difficulty in distinguishing content marketing from regular content.
Federal legislation to ensure consistent regulation of gambling advertising, with clear guidelines for responsible gambling messages, age verification and ad content.
The AGA codes would benefit from more detailed guidance on ad transparency, responsible gaming and age-related protections. Clear enforcement mechanisms, such as independent audits and penalties, should also be introduced.
Regulations should prohibit the use of celebrities in gambling marketing, to reduce the appeal of gambling ads to minors, following the example of other jurisdictions.
Engaging children and child-focused experts in creating advertising codes could ensure that protections better reflect content that appeals to younger audiences.
A centralized repository for online gambling ads would support transparency and facilitate regulatory oversight, enabling more effective monitoring and enforcement.
It’s unclear if sports betting advertising can be restricted under state or federal law in an “age of heightened commercial speech protection,” as a recent Harvard Law School paper questioned.
The use of celebrities to promote gambling appears to be drawing increased scrutiny globally. The most high-profile U.S. example is LeBron James’ promotion of DraftKings.
Image via Pixabay.