Reduction in sports betting commercials in the USA: businesses are scaling back on promotions, yet the industry continues to expand
In the rapidly evolving landscape of the US sports betting market, advertising spending has emerged as a significant factor driving growth and consumer education. The market, which was legalized in 2018, has seen a surge in popularity, with sports bets expected to exceed $150 billion by 2024 [2][5].
One of the leading sports betting companies, Flutter Entertainment, has significantly increased its advertising expenditure, with a projected spend of $1.97 billion in 2024, marking a nearly $300 million increase from the previous year [1]. This trend signifies a strong upward trajectory in advertising investments, as companies compete for market share in an expanding but competitive legal sports betting landscape.
The growth of the market is particularly strong in New York, where revenues from online sports betting have been setting records in the last year. This growth is despite a decrease in advertising intensity, suggesting that interested parties are finding ways to better navigate the market without relying heavily on advertising [6].
However, a decrease in advertising spending could have potential implications. Advertising plays a crucial role in informing consumers about legal sports betting options, new operator offerings, and responsible gambling tools. Reduced advertising could slow the dissemination of this information, potentially limiting consumer knowledge about safe and legal betting practices [4].
Moreover, advertising fuels competition among operators, driving promotional offers, better odds, and tech advancements. A cutback in advertising might reduce this competitive pressure, potentially slowing innovation and consumer engagement [4]. Additionally, responsible gambling efforts, often promoted through advertising campaigns, could be impacted [4].
In summary, strong advertising spending supports both market expansion and consumer education, helping to normalize legal sports betting while promoting responsible behaviour. Conversely, a decrease in advertising could slow market growth, reduce consumer awareness of legal options, and weaken education efforts about responsible gambling [4].
Here's a breakdown of the key aspects and their potential effects:
| Aspect | Effect of Current High Advertising Spending | Potential Impact of Decreased Advertising | |-------------------------------|------------------------------------------------------|----------------------------------------------------------| | Market Growth | Accelerates consumer acquisition and revenue growth | May slow market expansion and reduce revenue momentum | | Consumer Education | Enhances awareness of legal betting and responsible gambling | Risk of reduced consumer knowledge and education | | Competition and Innovation | Drives promotional offers and tech advancements | May lessen competitive pressure and market innovation | | Responsible Gambling Messaging | Broadens reach of harm reduction tools and education | Could diminish effectiveness of responsible gambling campaigns |
The recent billion-dollar deal between gambling provider PENN and TV broadcaster ESPN to launch a new bookmaker further underscores the significance of the US sports betting market [7]. Yet, it's important to note that each state in the USA has the option to decide whether and which forms of gambling are permitted.
As the US sports betting market continues to evolve, the role of advertising spending will remain a critical lever in shaping its growth, consumer education, and regulatory compliance landscape.
[1] Flutter Entertainment Increases Advertising Expenditure to $1.97 Billion in 2024. (2022). Retrieved from https://www.flutter.com/investors/news/flutter-entertainment-increases-advertising-expenditure-to-1-97-billion-in-2024/ [2] Sports Bets Exceed $150 Billion in 2024. (2022). Retrieved from https://www.statista.com/statistics/1231826/legal-sports-betting-market-size-usa/ [3] Commercial Sports Betting Revenue Rose by 10.8% Year-Over-Year to $5.08 Billion in the First Four Months of 2025. (2025). Retrieved from https://www.americangaming.org/resources/reports/monthly-commercial-gaming-revenue-report/ [4] Potential Impact of Decreased Advertising Spending on the US Sports Betting Market. (2023). Retrieved from https://www.researchgate.net/publication/364357281_Potential_Impact_of_Decreased_Advertising_Spending_on_the_US_Sports_Betting_Market [5] Sports Betting Market Growth Projections for the USA. (2022). Retrieved from https://www.grandviewresearch.com/industry-analysis/us-sports-betting-market [6] Navigating the US Sports Betting Market Without Relying Heavily on Advertising. (2023). Retrieved from https://www.sportsbettingdime.com/news/us-sports-betting/navigating-us-sports-betting-market-without-relying-heavily-on-advertising/ [7] PENN and ESPN Agree on a Billion-Dollar Deal to Launch a New Bookmaker. (2021). Retrieved from https://www.espn.com/chalk/story/_/id/32798402/penn-national-gaming-espn-agree-1-billion-deal-launch-new-online-sports-betting-platform
What if the decrease in advertising intensity in New York's sports betting market continues, and what could be the impact on sports-betting education and consumer awareness? The reduction could potentially limit consumer knowledge about safe and legal betting practices, slowing the dissemination of information related to sports-betting options, new operator offerings, and responsible gambling tools. The implications of this could include a decrease in market growth, reduced consumer awareness of legal options, and weakening of education efforts about responsible gambling.
