Published on: March 26, 2026, 01:04h.
Updated on: March 26, 2026, 01:04h.
- February promotional expenditures have seen significant declines in at least six states.
- Post-Super Bowl adjustments are expected, but the 2026 reductions are substantial.
- Only two operators increased their promotional investments last month.
As football holds the title of the most popular betting sport in the US, it’s common for sportsbook operators to reduce promotional expenditures after the Super Bowl. However, the 2026 reductions are particularly noteworthy.
A recent analysis by Eilers & Krejcik Gaming (EKG) showcases data from six states, indicating an average reduction of 25% in customer acquisition and retention spending among sportsbook operators compared to February 2025. While this decline presents a mixed bag of news, it highlights a concerning link between promotional expenditures and betting handle.
“The decrease in promotional spending has led to a subsequent decline in handle, which fell by 5% year-over-year,” the research firm notes.
States included in the EKG report are Connecticut, Kansas, Michigan, North Carolina, Pennsylvania, and Wyoming. Connecticut experienced the most significant drop in promotional spending, falling by 45%, while Michigan’s decline was less than 10%.
Positive Aspects of Reduced Sportsbook Promotional Expenditure
Despite the decrease, there are several positive indicators in the reduced promotional spending for sports wagering. This change coincides with a perceived competitive threat from prediction markets.
Multiple data sources suggest that contracts for sports events play a crucial role in the expansion of yes/no exchanges. However, evidence shows that in states where online sports betting is legalized, bettors still prefer traditional sportsbooks over prediction markets, indicating that the latter isn’t significantly encroaching on market share. In other words, if prediction markets were capturing market share from sportsbooks, gaming companies may not be cutting back on promotional spending.
Moreover, profitability has emerged as a critical theme regarding promotional expenditures. The era of investors tolerating significant spending for growth has passed; they are now prioritizing profit, and high promotional expenditures can hinder that goal.
“Spending is down across the board, indicating a strong confidence in underlying demand and an ongoing focus on profitability over volume,” EKG adds.
Mixed Trends Among Operators
According to EKG’s findings, only two operators upped their customer-related spending in February: Caesars Sportsbook and Rush Street Interactive’s BetRivers. However, EKG points out that the uptick is likely due to these operators starting from a low expenditure base in February 2025.
Conversely, the most significant declines in February 2026 promotional spending were recorded at Fanatics (62%) and Penn Entertainment’s TheScore (55%).
While EKG did not explore the reasons behind these drops, one possibility is that Fanatics is redirecting some of its budget to its prediction market offerings. As for Penn, the operator may be aiming to improve its financial outlook, demonstrating to investors a more cautious approach to sports betting, reallocating some spending to iGaming, or a combination of these strategies.