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In the realm of addiction, abstaining from temptation frequently plays a crucial role in the journey towards recovery.
To effectively deal with gambling addiction, one should steer clear of casinos and sportsbooks.
Advertisements have been a constant source of temptation for the gambling addict throughout the past year, posing significant challenges to resist.
It has been challenging to escape the increasing promotion of sports betting, especially considering the staggering amount of over $1 billion dedicated solely to sports betting advertising in the United States in 2021.
During Problem Gambling Awareness Month, supporters are advocating for restrictions on gambling advertisements across various platforms. Additionally, they seek to counteract these advertisements by increasing the promotion of problem gambling awareness.
Just how much gambling advertising is there?
You probably have come across quite a few sports betting ads over the past year, considering that online gaming was legalized in Michigan.
Advertisements are available in various formats, ranging from television commercials and radio plugs to push notifications, social media posts, and beyond.
Not only Michigan, but also other states across the nation are witnessing this surge in advertising as sports betting becomes legalized in more areas.
Nielsen reports that sports betting companies allocated $1.2 billion towards advertising expenses in 2021, with projections indicating a surge to $2.1 billion in 2022.
Not only national markets, but local markets are also being affected by the advertisements. The expenditure on online gambling advertising on local US TV networks has surged from $10.7 million in Q1 2019 to $154 million in Q1 2021.
The effectiveness of advertising can be observed through Michigan’s notable results. In 2021, the state recorded a remarkable online sports betting handle of $3.7 billion, generating a revenue of $292.2 million. Additionally, internet gaming revenue amounted to a substantial $1.1 billion.
Local media outlets have also experienced significant productivity. Experts forecast that local TV networks could generate up to $587 million in ad revenue from gambling advertisements by 2025.
Increase the advocacy for help
Advocates aim to combat problem gambling by using the same strategy: raising awareness.
Although they acknowledge that they cannot compete with the extensive advertising produced by sportsbooks and casinos, they believe that more can be done to ensure their voices are heard on a larger scale.
Alia Lucas, a specialist in the prevention and treatment program for gambling disorders at the Michigan Department of Health and Human Services, expressed her concerns regarding the overwhelming number of advertisements. She emphasized the importance of ensuring that the Michigan public is well-informed about not only gambling itself but also the risks associated with problematic gambling and the services available to address these issues.
For the 2022 fiscal year (October 2021-September 2022), the MDHHS plans to allocate $1.4 million towards advertising campaigns aimed at promoting responsible gambling. This funding includes a portion of the $1 million, derived from taxes on sports betting and internet gaming, which was specifically designated for addressing problem gambling as per the state’s expanded gambling legislation.
Included in the advertising plans from the MDHHS are:
- For a continuous year, there will be radio and TV spots broadcasted across the Michigan Cable Telecommunications Association and Michigan Association of Broadcasters.
- Connected TV ads (Smart TV, Roku, Sling, Amazon, etc.) will be run for a duration of 24 weeks.
- Outdoor displays featuring high-impact visuals will be showcased for a period of 12 weeks in close proximity to Michigan casinos.
- Over a span of 15 weeks, Gas Station TV ads will be broadcasted across a network of 801 gas stations, reaching a total of 9,226 screens.
- Social media advertisements spanning a period of 36 weeks.
The objective of the advertising campaigns is to encourage individuals struggling with gambling addiction, as well as family members of problem gamblers, to contact the MDHHS Problem Gambling Helpline (1-800-270-7117) or visit Michigan.gov/ProblemGambling to access additional information.
Furthermore, their objective includes the education of gamers and parents regarding the potential transformation of online gambling into a problematic behavior.
More hands on deck?
Spreading the responsible gaming message requires more than mere verbal assurance of its implementation.
The funding allocated for promoting the message is significantly overshadowed by the extensive advertising and easy access to gambling.
Problem gambling is acknowledged as an addictive disorder by the Diagnostic and Statistical Manual of Mental Disorders, alongside substance abuse.
On a national level, substance abuse received 334 times more public funding than problem gambling services in the previous year, despite the fact that the prevalence of substance abuse addiction was only 3.8 times higher than that of gambling addiction.
In a 2016 national survey conducted by the National Council on Public Gambling, Michigan was found to be the 21st state out of 50 in terms of per capita public funds allocated to problem gambling services. The average per capita allocation for problem gambling services in the 40 states with publicly funded services was 37 cents in 2016. However, Michigan’s per capita public investment for such services was only 23 cents.
In our previous report, we mentioned that there has been a threefold increase in calls to the MDHHS Problem Gambling Helpline over the past year. Although we provided an in-depth analysis of the implications related to the rise in problem gambling, it does signify a rising demand and importance of the service.
As the demand for addressing the issue continues to rise, additional staff may be necessary, which would further strain the already insufficient funding resources.
Lucas suggests that a unified message from all advocates is one approach to address the lack of funds.
She stated that the focus should not only be on the Department of Health and Human Services, but also on the Michigan state lottery and the Michigan Gaming Control Board. It has been acknowledged by all that there is a necessity to raise awareness not just about gambling disorder, but also about responsible gaming.
Operators contributing as well
It’s quite simple to put the blame on sportsbooks for the excessive presence of advertisements.
According to the Nielsen study, analysts anticipate that DraftKings and FanDuel are expected to allocate $400 million towards advertising expenditure over the course of the upcoming three years.
However, operators acknowledge the risks associated with gambling addiction and are actively working towards encouraging responsible gambling.
In March, FanDuel introduced a fresh responsible gaming ad campaign, while also generously contributing $100,000 to the National Council on Problem Gambling.
Adam Warrington, Vice President of Responsible Gaming at FanDuel Group, expressed the company’s unwavering dedication to creating valuable tools and programs that have a positive impact on responsible gaming. He emphasized that their latest advertising campaign is designed to shed light on their player control tools, which assist customers in maintaining a fun and enjoyable sports betting experience.
The advertising campaign will prioritize FanDuel’s “Play Well” website, which offers a range of responsible gaming resources and tools.
- Limits on Deposits
- Limits on wagers
- Limits on the maximum wager size
- Limits on time
- Exclusion from gaming on all FanDuel sites: Self-Enforced.
After incurring a Q4 2021 EBITDA loss of $305 million, Caesars Sportsbook has made the decision to reduce its marketing endeavors.
Caesars remains steadfast in its commitment to promoting responsible gambling.
Caesars stated that they are constantly adapting their responsible gaming program to keep up with the evolving industry. They have made significant strides, such as airing the first-ever responsible gaming ad spot during NFL games and the Super Bowl. Additionally, they have implemented a national self-exclusion program for brick & mortar casino gaming and offer extensive tools on the Caesars Sportsbook app. They emphasized that they approach this subject with great seriousness.
What other countries have done
Our overseas friends had been grappling with similar advertising concerns well before the United States ventured into legalized sports betting.
When it comes to gambling policies, each state in the US operates under its own set of laws. In regard to sports betting, no two states have established identical regulations for what is permitted and what is prohibited.
Although it is uncommon for nationwide changes or limitations to sports betting advertising in some countries, it is a regular occurrence in others.
At present, the United Kingdom is in the process of revamping its gambling regulations concerning sponsorships due to the realization that advertising has a considerable influence on gamblers.
Soccer sponsorships from gambling operators have been prohibited by the Spanish government. Additionally, gambling advertisements on radio and TV are banned, except during the hours of 1-5 a.m. Promotional bonuses are also no longer allowed, except for verified customers.
In Australia, advertisements during live sports broadcasts and programs targeted at children have been limited between the hours of 5 a.m. to 8:30 p.m. Additionally, the use of credit cards for gambling has been prohibited.
If gambling advertising becomes excessive or is believed to be aimed at young people according to lawmakers, the US might adopt similar measures as these other nations.
Currently, it is a positive move to have stakeholders actively engaging in self-regulation, while also emphasizing the importance of responsible gambling.
If you or someone you are acquainted with requires assistance regarding gambling-related concerns, please reach out to the Michigan Department of Health and Human Services Problem Gambling Helpline at 1-800-270-7117.
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