Gambling advertising is now a popular way for many operators to increase their player base. These advertisements act as magnets to drive traffic and greatly influence people's feelings about gaming online.
You usually see enticing pictures and compelling words when you scroll through social media or walk down the street looking at billboards. Most of these promise quick wins and life-changing jackpots.
It is not just about selling a game or a bet; this type of marketing sells dreams of wealth and entertainment wrapped up in chance excitement. However, a complex ethical maze lies beneath the shiny images and catchy slogans. Come with us as we unpack all sides of gambling advertising.
TL;DR
- Gambling advertising is predicted to increase at a compound annual growth rate of 6.4% to $744.76 billion in 2028.
- The top four ad advertisers in 2024 are BetMGM, FanDuel, DraftKings, and PrizePicks, contributing to 60% of the total promotion expense at Super Bowl 58.
- Countries like Kosovo and Albania have completely banned gambling advertisements. In contrast, the US, Austria, and Spain freely permit it as long as it doesn’t target minors.
What Is Gambling Advertising?
Gambling companies often use advertisements as a strategic tool to promote their products. These ads are designed to attract new customers and retain the interest of existing ones by highlighting the thrill, potential financial gain, and social aspects of gaming.
The underlying objective of these promotions is to increase immediate engagement, foster brand loyalty, and create a lasting impression. These ads are made using various media platforms, including:
- Print - Newspapers or billboards
- Television - Commercials
- Radio - Podcasts and radio stations
- Online - Social media and websites
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The Global Gambling & Gambling Advertising Industries
Statista reports that the global gambling industry has had a smooth rise for several years. The largest decrease in market size was recorded during the coronavirus pandemic, which disrupted betting markets and particularly affected casinos.
Since then, the global market has recovered and is projected to grow even more after its performance throughout the pandemic. According to Yahoo! Finance, the market size has surged recently, increasing from $540.27 billion in 2023 to $580.36 billion in 2024 at a compound annual growth rate (CAGR) of 7.4%.
Research on emergent gambling advertising found that the gambling market growth is due to significant industry spending, particularly in countries like Australia and the UK that have already legalized gambling. Estimates show that the Australian gambling sector spent $273 million on marketing and promotion in 2018, up 33% annually from 2011.
Between 2014 and 2018, the UK gambling industry's advertising expenses increased by more than 17% annually, amounting to an estimated £1.5 billion. This advertising spend amounts to 10.34% of the gross yield of the UK gambling business in 2018, which was £14.5 billion.
Global Online Gambling Market (2022 to 2028)
As reported by Statista, the global gambling industry saw a market size increase to $249.3 billion. Given this recent trend, the betting market will likely expand significantly over the coming years. We are predicting an increase at a compound annual growth rate (CAGR) of 6.4% to $744.76 billion in 2028.
The expanding popularity of social media, rapid urbanization, legalization of gambling, and population increase all contribute to the projected rise in the projection period. We will discuss this in detail in the next section.
Key Factors Impacting the Recent Growth
As we said previously, certain factors have contributed to the recent growth of the online gambling market. Here are the main drivers behind the boost:
Technology Advancement: Online gambling was significantly affected by the widespread availability of high-speed Internet and the popularity of mobile devices. For this reason, developers created more visually advanced games with live streaming capacity and user-friendly, seamless interfaces. This gives you an experience closer to reality that is even better than what you would get at a brick-and-mortar casino.
Changes in Laws: Modifying legislation worldwide has been instrumental in market growth. Legalizing and regulating online-based wagering in various countries, including parts of Europe, the USA, and Canada, increases the user base and attracts big investments from industry tycoons.
Pandemic Effect: The COVID-19 pandemic saw physical casinos shut down temporarily while stopping sporting events. This led players to turn to online platforms, therefore spiking up levels of participation in online sports gambling sites, which became popular during this period. Still, after lockdowns, people continued to find it convenient or comfortable to gamble from their homes.
Increased Marketing and Advertising: Many sites promote themselves through targeted ads and increased bonuses. These marketing strategies can attract new players, and existing ones can be retained through promotions, bonuses, and loyalty programs.
Multiple Betting Choices: Online platforms provide various gambling opportunities, such as sports betting, casino games, poker, and fantasy. This variety caters to a wider audience with different preferences and backgrounds.
Social Gambling: More people are seeking the social side of gambling. This has led to sites adding features that enable users to communicate, compete against each other, and share their gaming experiences online.
Payment Innovations: The availability of various secure payment methods, such as digital wallets or cryptocurrencies, has made it easier for people to deposit or withdraw funds safely. These new ideas not only improve the user experience but also extend the reach of online gambling services to regions where banking regulations are stringent.
Top Gambling Advertisers in 2024
While many companies ran ads in 2024, only a few stood out due to their total expenses. One good example is the 2024 Super Bowl. According to MediaPost, several gambling brands contributed to this sporting event's total ad expenses (over $1 billion).
The four major companies were:
- BetMGM
- FanDuel
- DraftKings
- PrizePicks
They contributed 60% of the total expense, 4% more than in 2022.
How Do Gambling Companies Advertise Their Products?
Gambling advertisements come in various forms and channels, and brands use them to market their service and reach out to their target audience. Here are examples of these ads:
Blockchain-Ads - Fairspin Website Ad
Here is more information on the Fairspin case study by Blockchain-Ads.
Bet365 - Never Ordinary Ads
DraftKings - SuperBowl 58 Ad
FanDuel - Kick of Destiny 2 Ad
Laws and Regulations on Gambling Advertising
Most countries have their distinct laws on gambling advertising. While this is true, these regulations are divided into three types, and we’ll classify them below:
Sanctioned Gambling Advertising
Some countries permit gambling advertising with little to no restrictions. We’ll list the nations that fall into this category and some of their limitations.
The US
Under US federal law, gambling is allowed; however, each state can control or outlaw advertising within its boundaries. There are some notable differences between states regarding the kinds of ads allowed. For example, DraftKings and FanDuel can advertise in New York State because people view them as skill-based fantasy leagues rather than gambling.
Austria and Spain
Spain and Austria also permit gambling advertising. However, in Austria, licensed firms are expected to adhere to a "responsible approach" to their advertising endeavours. Likewise, Spain has implemented policies to improve responsible gaming and consumer protection.
Partial Ban
Certain countries allow brands to run gambling ads but usually accompany this permission with very strict conditions. Here are some nations that do so:
Russia and Ukraine
The Russian Federation imposed a partial restriction on gambling advertisements, which are only permitted between 10 p.m. and 7 a.m. on radio and television and at the actual gaming venues. In Ukraine, there is a partial restriction on advertising, meaning that it can only be done within the legal parameters.
Iceland, Finland, and Denmark
Iceland, Denmark, and Finland have partially banned gambling advertisements. Iceland must expressly state its economic interests, which can only be done in the native language.
Finland's laws prohibit gambling advertising on television, radio, and motion picture presentations. The prohibition extends to ads directed at children. Denmark allows gambling advertisements, but they cannot include CTAs to attend or play at any gambling institution.
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The UK, Poland and Germany
Gambling advertising is partially restricted in Poland. Advertisements for cylindrical games, card games, dice games, and gaming machines were prohibited. The United Kingdom adheres to a liberal view. Therefore, these advertisements are partially banned, as they should not be directed at minors.
Any gambling-related TV and online advertisements are prohibited in Germany. However, lotto, sports, and horserace betting firms may receive government authorization from the Federal Republic of Germany to run television and online advertisements.
Complete Ban
Gambling advertisements are completely prohibited in some countries. Here are the nations with a full ban:
Kosovo and Albania
Albania and Kosovo outlawed gambling advertising altogether. Generally speaking, it is forbidden to engage in it on Kosovo territory. In Albania, it's illegal to advertise gambling in electronic, print, or audiovisual media.
How Blockchain-Ads Can Help You With Your Project
Blockchain-Ads, one of the leading Web3 ad networks, offers many features that could help boost your brand. It has helped many gambling brands promote their services, including Slots.lv. Here are a few ways it can help your project:
Improved Ad Matching: When you have dependable, open information, aiming your ads at the right audience is much easier. With Blockchain-Ads, you can securely record user preferences, thus enabling better matching without violating personal privacy.
Audience Verification: Blockchain-Ads verifies that those who see an advertisement are real people who meet your target audience per their demographic characteristics. This feature could come in handy while running campaigns directed at specific groups of users.
Token Launch: Blockchain-Ads ensures that your virtual money is seen during exclusive pre-sales or public token releases. Thanks to its improved audience targeting dashboard, you can confidently focus on potential investors and cryptocurrency users.
Understanding Gambling Advertising
Gambling advertising is a very important aspect of the gaming industry that can influence players’ interest. As we have seen, these ads are not just meant to educate or entertain; they tell stories that deeply touch our sense of risk and reward.
Blockchain-Ads takes this to another level by offering features that streamline your marketing campaign and help boost your traffic. With its available options, you can easily target your crypto gambling target.
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