Sportsbook Marketing Offers Increase Amount of Money Gamblers Spend: Study

Researchers are calling for new regulatory limits on direct sportsbook marketing promotions, warning the advertising has a causal impact on problem gambling.

A new study suggests that opting out of direct promotions from sports betting platforms may help gamblers save money and reduce the risk of developing a potentially crippling addiction.

Researchers from Australia report that sportsbooks and other online gambling ventures frequently send out direct marketing offers, in the form of emails, push notifications and text messages. While many consumers consider themselves immune to most marketing efforts, findings published in the journal Addiction on March 26 indicate opting out of receiving those promotions can save money and grief.

The findings come as sports betting sites, known as sportsbooks, face growing scrutiny nationwide following widespread legalization since 2018, even as individual states continue to decide whether residents can participate and be targeted by marketing.

As sportsbooks have expanded, critics warn that platforms like DraftKings and FanDuel rely on aggressive promotions and data-driven algorithms that track user behavior and tailor incentives to encourage more frequent and higher wagers.

This rapid growth has coincided with a surge in gambling addiction, particularly among college-age users who are comfortable with mobile apps and digital payments, and are often managing their finances independently for the first time.

A growing number of consumers are now filing sportsbook addiction lawsuits, alleging that betting platforms are intentionally designed to encourage compulsive gambling, profit from users’ financial and emotional losses, and push them to continue wagering even as those losses mount.

Sportsbook Marketing Study

The study, led by Matthew Rockloff of Central Queensland University’s Experimental Gambling Research Laboratory, and funded by Gambling Research Australia, examined whether regulatory changes are needed in how the country oversees sportsbook promotions.

Participants were required to be over 18 and to have maintained an active gambling account within the past year. They were then surveyed over a two-week period about their gambling habits.

“Whether gambling marketing has causal effect on harm is of regulatory interest. Direct marketing offers (emails, push notifications and text messages) are frequently received by people with active gambling accounts, but they can opt out.”

– Matthew Rockloff, Direct gambling marketing, direct harm: A randomised experiment

For the study, researchers conducted a stratified field experiment involving 227 participants, slightly more than half of whom received a moderate-risk or problem score on the Problem Gambling Severity Index (PGSI). Divided into groups by risk, 96 of the participants opted out of receiving direct marketing promotions from sportsbooks, while 131 others continued to receive the ads, acting as a control group. According to the findings:

• Those who opted out placed 23% fewer bets and spent 39% less money
• The opt-out group reported 67% fewer gambling-related harms
• Participants receiving ads averaged 12.5 bets, compared to 9.6 bets for those who opted out

The researchers determined that, across all outcomes, those who opted out of receiving sportsbook direct marketing promotions gambled with significantly lower intensity. They also found that the gambling intensity peaked during weekends and major sporting events.

Rockloff and his team concluded that the study provides evidence of a causal relationship between sportsbook promotions and problem gambling. The sportsbooks seem to know this as well, as the researchers found the companies sent direct marketing messages more frequently to gamblers who spent more and experienced more harm.

They suggested possible regulatory actions could include requiring consumers to opt in to direct marketing instead of having to opt out, putting a limit on message frequency, and placing limits on bets tied to social pressure, like time-limited prompts.

Sportsbook Addiction Lawsuits

The findings come as an increasing number of gamblers file sportsbook addiction lawsuits against operators of sports betting sites, accusing platforms like DraftKings, FanDuel and others of using predatory practices to exploit consumers and foster addiction, particularly in younger consumers.

Sports betting addiction lawyers are investigating claims nationwide, focusing on whether these platforms intentionally foster compulsive behavior and profit from users’ escalating losses. Platforms named in ongoing investigations include:

To find out whether you qualify for a sports betting lawsuit, submit information about your potential claim for an attorney to review. All cases are handled on a contingency fee basis, meaning you pay nothing unless a settlement is obtained in your case.

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