The top sportsbooks in the United States, FanDuel, DraftKings, and BetMGM, reduced their advertising spending in 2023 as the competitive gaming market became more consolidated. According to MediaRadar, an advertising research firm, the three companies reduced their advertising budgets. FanDuel’s spending decreased by 17%, DraftKings decreased by 13%, and BetMGM cut its advertising funds by 26%.
In contrast, PrizePicks, a leading daily fantasy sports operator, increased its advertising spending significantly. PrizePicks spent more than four times as much on advertising compared to the previous year.
Together, the four companies spent nearly $1 billion on advertising across various platforms such as television, social media, web, mobile, and traditional advertising like billboards and mailers. While this was still a significant amount, it represented a 15% decrease from the previous year.
Interestingly, the sportsbooks increased their spending on television commercials, despite reducing spending in other advertising categories. FanDuel, DraftKings, and BetMGM allocated more funds for television advertising, with PrizePicks also increasing its television ad spending.
The high overall spending in 2023 was driven in part by significant bets made by DraftKings and FanDuel during Super Bowl LVII. The NFL title game saw both sportsbooks running multiple commercials, which contributed to a total spending of $90 million for the event.
Looking ahead to this year’s Super Bowl, the NFL has indicated that there will be a total of only three sports betting commercials. FanDuel and BetMGM are actively promoting their products with innovative commercials featuring Rob Gronkowski and a star-studded cast including Tom Brady, Wayne Gretzky, and Vince Vaughn.
The gaming industry is anticipating record legal betting on Super Bowl LVIII, with analysts predicting $1.25 billion to be wagered lawfully on the game. Despite the growth of legal sports betting, the American Gaming Association expects more than $23 billion in total to be wagered on the game, including bets placed through legal channels, offshore platforms, bookies, and between friends.