Flutter has today announced that it will be funding an independent research study that will examine the impact of sports betting advertising and marketing campaigns on the public.
The study will be carried out by Canada's Responsible Gambling Council (RGC) headquartered in Toronto. The goal of the initiative is to conduct what global gaming giant Flutter — the owner of the largest U.S. sportsbook FanDuel — describes as "first-of-its-kind" baseline research that will help both regulators and operators develop and refine responsible gaming policies and practices.
Further understanding the landscape
According to the official RGC press release, "This multi-phase independent research study... will explore the current landscape of marketing and advertising on a global scale and provide policy recommendations that address key operating environments such as Ontario and New Jersey."
The comprehensive RGC research project is expected to yield valuable insights into the causes of problem gambling and what steps can be taken to mitigate unhealthy consumer betting behaviour.
The results of the study are expected to be released early in 2024 and are intended to "contribute to building a world-class responsible gambling framework in Ontario and influence responsible gambling policies and practices around the globe."
In comments prepared for the press release, Geroge Sweny, VP of Regulatory Affairs, Flutter International, stated that his company is fully committed to reducing the adverse effects of the hundreds of millions of dollars that the major sportsbooks are spending on attracting new bettors.
"There is a need to better understand the impacts of increased marketing and advertising on all stakeholders," said Sweny.
He added: "We saw an opportunity to provide cutting edge thought leadership to the industry... This foundational research will help us all make necessary strides towards bridging the gap between best and better practices in an area of significant importance. Leading progress is one of the key pillars of our global Play Well strategy and we are delighted to be working with the RGC to support this important research."
Safety first
Shelly White, CEO of RGC, addressed the need for "harm minimization" related to the need to "protect players" especially as Ontario and other jurisdictions in North America are witnessing a spectacular growth in online sports betting.
"Through this research, we not only have the ability to affect necessary changes to our marketing and advertising standards here in Ontario but also the ability to make great impacts to the harm minimization efforts of jurisdictions all around the world," said White. "This comprehensive study truly highlights the culture shift that the industry is currently undergoing, and by leveraging our research partners, we can make greater impacts in protecting players and communities."
The legal U.S. sports betting market doubled in 2021, with more than $52.7 billion wagered throughout the year, according to figures reported by data gathering agency Morning Consult. Meanwhile, the share of Americans ages 21 and up who said they regularly bet on sports increased by 80% over the course of last year.
According to Insider Intelligence, the number of online bettors in the U.S. will reach the level of 19.0 million online sports bettors by the end of 2022, a 31% increase from 2021. And by the end of 2023, it is estimated that there will be 23.1 million Americans legally wagering on sports.
This continued growth in the number of online sports bettors is being driven by more states continuing to legalize and roll out online sports betting operations. Massachusetts, Maryland, and Kansas are all expected to go live by the end of this year or by the beginning of 2023 at the latest, with California, the biggest wagering market of them all, voting on whether to approve mobile betting legislation this November.
Keeping its foot on the gas
Meanwhile, the major sportsbooks continue to spend hundreds of millions of dollars on blanket advertising and promotional campaigns to attract new bettors and consolidate market share.
In fact, while other major sportsbooks have hinted at cutting back ad spend to improve their balance sheets, Flutter CEO Peter Jackson is intent on maintaining and likely increasing its ad spend in America to promote FanDuel.
"Other people seem to be stepping back but we’re seeing big opportunities and we’re really leaning into it," said Jackson in May.
"We’re driving very hard on customer acquisition and we’re very happy with both the acquisition costs and lifetime value dynamics. So we’re continuing to push really hard on acquisition."
FanDuel, Flutter's high-flying subsidiary, is the leading U.S. sportsbook. As of the end of 2021, FanDuel dominated the industry with its 36% share of sportsbook wagering revenues as compared to nearest competitors DraftKings (24% market share) and BetMGM (15%).
Responsible gaming is regarded as a major priority at Flutter and its FanDuel subsidiary. "Our mission is to encourage safe play and ensure no bet placed results in harm," states a message on the Irish gaming giant's website.
FanDuel was the first U.S. sportsbook to partner with the American Gaming Association’s "Have a Game Plan" campaign to promote responsible gambling and continues to fund the effort.
