The underground Sports Betting market is estimated to generate at least $150 billion annually in the United States. My wager: I believe that yesterday’s ruling by the U.S Supreme Court to legalize sports betting will unleash a tidal wave of growth in the sports betting market, while placing a boot on the neck of bookies and other underground operators. Based on the ruling, I foresee a tripling of the legal market in ten years or less. Cash-strapped states across the country will be hopping on the band wagon, starting with New Jersey, whose political and gaming industry leaders played a key role in the ten-year fight to make sports betting legal.
The Court determined that Congress’ 1994 Professional and Amateur Sports Protection Act was unconstitutional because it trampled on states’ rights to enact their own laws in this area. Now that it’s legal and coming to a mobile phone near you, sports betting is going to affect everyone. People in leadership positions, from parents, pastors, and principals, to elected officials, doctors, and marketers, all need to understand the sports betting market and what may be appearing on the horizon.
Leading up to the decision, advocacy groups lined up on either side of the issue. The NFL, MLB, and other sports leagues were against legalization, arguing to protect the integrity of the game. Now that they’ve lost, the leagues and players associations will want to justify getting a small piece of the action. But, they have to define a rationale that is magnanimous to fans and society. Gaming companies, broadcasters, and media and data companies were behind legalizing sports betting, arguing that the free market is meeting human needs. Now, they want to compete to meet existing and latent market demand, while maintaining the belief that the downsides of the industry can be minimized. For example, they argue that big data technology can be deployed to detect fraud and prevent collusion and game-throwing behavior. Question: Who is going to pay for that, and how will that affect privacy and work-around behavior?
Technology and gaming companies and are getting ready to launch their campaigns fast. In fact, New Jersey politicians and gaming companies claim they will be ready for sports betting by Memorial Day, or July 4th. Clearly, this market is going to grow fast, and we have to ask how society and commerce will be impacted. Many casual fans who typically buy boxes at Super Bowl parties, but who never gamble in Vegas or AC, might be more tempted to bet on their favorite teams, and could lose their lunch money. How will brands react when chunks of disposable income are diverted from products to sports betting operators? How can parents and educators prepare kids for the barrage of advertising on their devices and at local convenience stores? How can the risks of sports betting be mitigated? What benefits can be crafted? Who is talking about the benefits?
Brands will have to think about how to prepare and respond to the approaching tidal wave in sports betting, too. Certain brands may appear to have a natural link to sports betting. They may see ways to leverage concepts that appeal to human nature’s desire to compete, to win, to outsmart the house. But there is more than one bettor personality. So, even appealing to young male sports fans comes with risk. For example, millennials, including young male sports fans, are very interested in sustainability, social justice, improving society, and giving back. Brands will need to be careful about their goals, their promotions, their messaging, and even the contextual environments in which their advertising appears.
In any market, there are winners and losers. State governments will be able to use tax revenues to build more parks and invest in youth education and recreation. They will also have to up their budgets for gambling addiction. After all, government has a responsibility to help its most vulnerable citizens. However, in sports betting, only the most sophisticated bettors win 55% of the time. Overall, the house always wins. That’s because on average, 19 out of 20 sports bets will be losing bets. With more cash going into media, gaming, and state governments, we have to think about the societal ROI.
May 15, 2018
Written by Tom Sullivan
This message is only visible to admins.
Problem displaying Facebook posts.
Click to show error
In this week's Marketing Insight, Director of Brand Innovation, Manish Patel, sheds light on what up-and-coming job… https://t.co/L5Ai5ecJws
March 8 - 6:53 pm - View on Twitter
In this week’s Marketing Insight, CEO Tom Sullivan discusses behavior change through the lens of Social Accountabil… https://t.co/HlOOBLiGdW
February 1 - 6:59 pm - View on Twitter
In this week's Marketing Insight, CEO Tom Sullivan shares a ten-minute talk about his unique approach to developing… https://t.co/7yaFXSnx8Z
January 10 - 4:41 pm - View on Twitter
There's still time to "gift" back this holiday! Check out our top 10 cause-based picks for the undecided shopper. https://t.co/HpVeLNHuGn
December 18 - 4:20 pm - View on Twitter
In this week’s Marketing Insight, CEO Tom Sullivan puts a spotlight on five successful, inspiring companies whose c… https://t.co/ZEWZw42Okq
December 13 - 7:32 pm - View on Twitter
In this week’s Marketing Insight, CEO Tom Sullivan shares some personal reflections on how to respond to today’s of… https://t.co/43WRKaYkI5
December 6 - 6:06 pm - View on Twitter
In this week’s Marketing Insight, Director of Brand Innovation, Manish Patel, discusses the impact of digital gamin… https://t.co/fYfSgLRRCk
November 29 - 5:09 pm - View on Twitter
At PPI, we love all things spooky. Check out our Halloween Video for a creepy treat! https://t.co/tKQHPyuvpm
October 31 - 2:33 pm - View on Twitter
In this week’s Marketing Insight, Director of Brand Innovation, Manish Patel, shares a personal anecdote that sheds… https://t.co/xc9uCVFHFK
October 11 - 6:50 pm - View on Twitter
CEO Tom Sullivan discusses several approaches for developing an informed, data-driven content strategy to boost the… https://t.co/0Nbz61DCd9
September 27 - 5:15 pm - View on Twitter
In this week's Marketing Insight, CEO Tom Sullivan continues to explore what we can learn from FAANG's Walled Garde… https://t.co/JeUvsfcDSb
September 19 - 4:30 pm - View on Twitter
In this week's Marketing Insights, CEO Tom Sullivan discusses the Walled Garden approach that FAANG companies, and… https://t.co/vRDzMWoAs9
September 12 - 3:26 pm - View on Twitter
In this week's Marketing Insights, Associate Creative Director, Tim Burr, discusses how a focused approach to marke… https://t.co/5loRgrFdUS
September 5 - 4:44 pm - View on Twitter
Check out our last installment of our Voice "mini-camp" series where VP of Marketing and Media Strategy, Chris Sull… https://t.co/6yxEmeYu9G
August 30 - 3:13 pm - View on Twitter
In our third Voice Marketing Insight, VP of Marketing & Media Strategy, Chris Sullivan, explores how marketers can… https://t.co/vjHPQEcWbe
August 16 - 3:50 pm - View on Twitter
VP of Marketing & Media Strategy, Chris Sullivan, discusses the importance of persona development and Audio Identit… https://t.co/fYSbIZGLED
August 7 - 4:41 pm - View on Twitter
In the first Insight of a "mini-camp" series on voice marketing, VP of Marketing & Media Strategy, Chris Sullivan,… https://t.co/tFgqjVh11C
July 31 - 7:05 pm - View on Twitter
CEO Tom Sullivan explores the recent succession of CEOs in the Fiat Chrysler Automotive and Ferrari families, and h… https://t.co/yIoeSKdhov
July 24 - 3:05 pm - View on Twitter
Check out my latest #podcast https://t.co/eFFLCk7uYn on #Podbean
July 23 - 9:02 pm - View on Twitter
Check out my latest #podcast https://t.co/D9dl82LjkP on #Podbean
July 23 - 8:52 pm - View on Twitter