Top US Sportsbook Brands Reduce Advertising Budgets

Posted on: February 6, 2024, 09:04h.

Last updated on: February 6, 2024, 09:04h.

In 2023, the three top US sportsbooks, FanDuel, DraftKings, and BetMGM, decreased their ad spending- a sign of the changing US gaming market. These companies cut nearly $1 billion in ad spending in 2023, a 15% reduction from the previous year.

sportsbook advertising spend US sports betting
A DraftKings Sportsbook digital ad above a New York City Subway stop. Sports betting ads remained prominent in the US in 2023, but leading sportsbooks cut back their overall spending. FanDuel, DraftKings, and BetMGM each spent less on sportsbook marketing than they did in 2022. (Image: Crain’s New York)

MediaRadar revealed that FanDuel, DraftKings, and BetMGM slashed their advertising budgets significantly in 2023. FanDuel spent 17% less on media, DraftKings spent 13% less, and BetMGM cut its ad funds by 26%. On the other hand, daily fantasy sports operator PrizePicks boosted its marketing spend by over four times.

Despite these changes, Super Bowl LVIII is expected to generate record legal wagers, with an estimated $1.25 billion betting legally on the game. The NFL title game will likely see a total of only three sports betting commercials.

Major TV Spend and Sponsorship

While overall ad spending decreased, the sportsbooks increased their TV commercial budgets. FanDuel, DraftKings, and BetMGM all upped their TV ad spends by significant percentages. FanDuel, DraftKings, and BetMGM all upped their TV ad spends by significant percentages. Additionally, there are also other forms of marketing such as PrizePicks which shows that television still holds significant value.

FanDuel allocated 18% more budget for TV, now at $157.7 million. Meanwhile, DraftKings and BetMGM spent nearly $123 million (up 23%) and $45 million (up 37%) respectively. PrizePicks also spent $30.5 million on TV, marking a 413% increase from the previous year.

Spending has also seen significant boosts from DraftKings and FanDuel during Super Bowl LVII, reaching a total of $90 million. The Super Bowl LVIII, which kicks off this Sunday, is anticipated to break wagering records, with the NFL expecting more than $23 billion in total bets.

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