Avoiding temptation is frequently a crucial aspect of recovery within the realm of addiction.
To conquer gambling addiction, it is advisable to steer clear of casinos and sportsbooks.
Advertisements have been a persistent temptation that the gambling addict has struggled to resist in the past year.
It has been challenging to escape the increasing influence of sports betting advertising in the United States, especially considering the staggering amount of over $1 billion spent solely on this form of advertisement in 2021.
Advocates are urging for restrictions on gambling advertisements on all platforms during Problem Gambling Awareness Month. Additionally, they emphasize the need to counterbalance these ads by increasing the promotion of problem gambling awareness.
Just how much gambling advertising is there?
It’s likely that you’ve come across numerous sports betting advertisements over the past year, following the legalization of online gaming in Michigan.
There are various types of advertisements available, ranging from television commercials and radio plugs to push notifications, social media posts, and many others.
Not only Michigan, but also other states across the nation are witnessing a surge in advertising as sports betting becomes legalized in more places.
Nielsen reports that sports betting companies spent $1.2 billion on advertising in 2021, and this figure is projected to increase to $2.1 billion in 2022.
Not only national markets, but local markets are also being affected by the ads. The expenditure on online gambling advertisements in local US TV networks witnessed a significant surge, increasing from $10.7 million in the first quarter of 2019 to $154 million in the first quarter of 2021.
Michigan has demonstrated the effectiveness of its advertising efforts, evident from the significant results. The state achieved a remarkable online sports betting handle of $3.7 billion in 2021, with $292.2 million generated in revenue. Furthermore, internet gaming revenue for the same year amounted to an impressive $1.1 billion.
Analysts forecast that local media outlets could witness a significant boost in revenue, as gambling advertisements are expected to generate approximately $587 million by 2025.
Increase the advocacy for help
Advocates aim to combat problem gambling by raising awareness through a like-for-like approach.
Although they are aware 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.
According to Alia Lucas, a specialist in gambling disorder prevention and treatment programs at the Michigan Department of Health and Human Services, our main concern is the overwhelming presence of advertisements. Our goal is to raise awareness and ensure that the Michigan public receives comprehensive information, not only about gambling itself but also about the risks of problematic gambling and the services we provide.
The MDHHS has allocated $1.4 million for the fiscal year 2022 (October 2021 to September 2022) to support the promotion of responsible gambling through advertisements. This funding includes $1 million, with $500,000 each from sports betting and internet gaming, which was specifically designated for addressing problem gambling as per the state’s expanded gambling laws.
Included in the advertising plans from the MDHHS are the following:
- Throughout the Michigan Cable Telecommunications Association and Michigan Association of Broadcasters, there will be a total of 52 weeks of radio spots and TV spots.
- Connected TV ads, including Smart TV, Roku, Sling, Amazon, etc., will be run for a duration of 24 weeks.
- For a period of 12 weeks, captivating outdoor displays will be featured in close proximity to Michigan casinos, showcasing high-impact visuals.
- Over a span of 15 weeks, Gas Station TV ads will be showcased across a network of 801 gas stations, reaching a grand total of 9,226 screens.
- Social media advertisements running for a duration 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 at 1-800-270-7117 or visit Michigan.gov/ProblemGambling for additional resources and support.
Their objective also includes educating gamers and parents about the potential transformation of online gambling into a problematic gambling behavior.
More hands on deck?
Spreading the responsible gaming message is not as easy as merely making a statement that it will be accomplished.
The funding allocated for promoting the message is significantly overshadowed by the extensive advertising and easy access to gambling.
Problem gambling is classified as an addictive disorder by the Diagnostic and Statistical Manual of Mental Disorders, alongside substance abuse.
In contrast, nationally, the funding allocated to substance abuse exceeded that of problem gambling services by a staggering ratio of 334 to 1 in the previous year. This is despite the fact that the prevalence of substance abuse addiction is 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 ranked 21st out of 50 states in terms of per capita public funds dedicated to problem gambling services. Among the 40 states with publicly funded services, the average per capita allocation of public funds for problem gambling services was 37 cents in 2016. However, Michigan’s per capita public investment in this area was only 23 cents.
As mentioned in our previous report, the number of calls to the MDHHS Problem Gambling Helpline has tripled in the past year. Although we provided a detailed analysis of the implications of this surge in problem gambling cases, it clearly highlights a rising demand and importance of the service.
As the demand for assistance continues to rise, additional personnel may be necessary, further straining the already constrained budgetary resources.
Lucas suggests that a unified message from all advocates is a potential solution 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. She further emphasized that everyone has acknowledged the importance of raising awareness not only about gambling disorder, but also about responsible gaming.
Operators contributing as well
Sportsbooks are often unfairly blamed for the excessive amount of advertisements, which is actually an effortless act.
According to analysts in the Nielsen study, it is anticipated that DraftKings and FanDuel will allocate a total of $400 million towards advertising within the upcoming three years.
However, operators are conscious of the risks associated with gambling addiction and are taking steps to encourage responsible gambling.
In March, FanDuel launched a fresh responsible gaming ad campaign and made a generous contribution of $100,000 to the National Council on Problem Gambling.
Adam Warrington, Vice President of Responsible Gaming at FanDuel Group, emphasized their unwavering dedication to creating impactful tools and programs that promote responsible gaming. He further explained that their latest advertising campaign is focused on shedding light on their player control tools, which assist customers in maintaining a fun and entertaining sports betting experience.
The main focus of the ad campaign will be on FanDuel’s “Play Well” website, which offers responsible gaming tools such as:
- Deposit Limits
- Wager Limits
- Maximum Wager Size Limits
- Time Limits
- The act of voluntarily excluding oneself from participating in any gaming activities on all FanDuel sites.
After suffering a Q4 2021 EBITDA loss of $305 million, Caesars Sportsbook has made the decision to reduce its marketing initiatives.
Caesars is dedicated to promoting responsible gambling and will continue to do so.
Caesars stated that they are adapting their responsible gaming program in sync with the changing landscape of our industry. They highlighted their groundbreaking initiatives such as the airing of the first-ever responsible gaming ad spot during NFL games and the Super Bowl, the introduction of a national self-exclusion program for brick & mortar casino gaming, and the comprehensive range of tools accessible on the Caesars Sportsbook app. It is evident that they approach this matter with utmost seriousness.
What other countries have done
Our friends overseas had already been grappling with similar advertising concerns long before the United States embraced legalized sports betting.
In the United States, gambling policies vary among states, with each state having its own set of laws. Sports betting regulations differ significantly from one state to another, with no uniformity in terms of what is permissible and what is prohibited.
Although it is unlikely that there will be nationwide changes or restrictions on sports betting advertising, such measures are common in other countries.
At present, the United Kingdom is in the process of revamping their gambling regulations with regards to sponsorships, as they have identified advertising as a major driving force for 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 for live sports broadcasts and programs aimed at children are limited from airing between 5 a.m. and 8:30 p.m. Additionally, the use of credit cards for gambling has been prohibited.
In the event that gambling advertising becomes excessively widespread or is viewed as targeting young individuals by lawmakers, there is a possibility that the US might adopt a similar approach as these other nations.
At present, taking concerted actions to enforce self-regulation among the involved parties, while also advocating for responsible gambling, is a positive move.
If you or someone you are acquainted with requires assistance regarding a gambling-related concern, please reach out to the Michigan Department of Health and Human Services Problem Gambling Helpline at 1-800-270-7117.