University of Bristol Study Examines Social Media Ads by Four Leading US Sportsbooks and Their Regulatory Compliance

A rapid review by marketing experts at the University of Bristol in the UK demonstrated the extensive amount of sports betting ads swamping social media in the US. Released in September 2024, Betting on Social Media: A Study on the Volume, Content, and Regulatory Compliance of Sports Betting Advertising in the US, is co-authored by Dr. Raffaello Rossi, Dr. Jamie Wheaton, Prof. Agnes Nairn, Saeid Moradipour, and Edoardo Tozz.

The review, one of the very first to zero in on social media ads in the US, collected data between July 29 and August 4, 2024, exploring organic and paid-for gambling ads by four leading US betting brands – BetMGM, DraftKings, ESPN Bet, and FanDuel featured on X, Instagram, TikTok, and Facebook.

In terms of numbers, the study reviewed 1,663 ads, averaging 237 ads per day. The high volume gives rise to concerns, the study explains, as increased exposure to gambling content is linked to problem behavior. The aforementioned brands posted 1,353 organic ads (81%) on the four social media platforms and 310 paid-for ads (19%) on Facebook and Instagram. The marketing experts have paid special attention to their compliance and have provided recommendations for regulatory action.

The prevalence of organic ads “suggests a shift towards more subtle, user-engaging strategies on social media platforms”, with 703 ads (52%) being based on content marketing. The latter is a contemporary strategy that does not resort to reference to the product or service advertised. Instead, it focuses on engaging content. The remaining 650 organic ads (48%) rely on conventional marketing strategies.

In contrast, all paid-for advertising content (100%) relies on conventional ads, instead of content marketing.

Conclusions and Recommendations of the Study

Overall, the sports betting advertising content under review has generated over 29 million impressions within a single week, demonstrating the extensive reach and profound impact of these marketing strategies.

In terms of regulatory compliance, the study has identified some significant disparities. While all paid-for advertising content complied with the regulations of the American Gaming Association (AGA), just 25% of organic ads adhered to the rules. Essentially, gambling advertising content must contain safer gambling messaging and help hotlines, which was lacking in 75% of organic ads (1,012).

Additionally, 58% of organic ads were not identifiable as advertising, which is in breach of the Federal Trade Commission guidelines. The study also revealed that 8% of ads may appeal to minors.

This divergence from established guidelines has called for several recommendations outlined in the closing pages of the study. Firstly, the authors have suggested introducing federal legislation governing gambling marketing. Secondly, the study recommends banning gambling content marketing on social media to reduce the exposure of children and young people to gambling.

Thirdly, the AGA must work to strengthen its codes through exhaustive guidelines and enforcement. As suggested in other studies, the current one advises upon the inclusion of children in the policy-making process of gambling marketing. Ads featuring celebrities must be restricted too, as they appeal to younger audiences. Last but not least, similar to the EU’s Digital Markets Act, the US should introduce a Centralized Database for Online Gambling Ads, to strengthen transparency and enforcement.