BetMGM

A new study from the University of Bristol suggests that major online sports betting companies—BetMGM, DraftKings, ESPN Bet, and FanDuel—are breaching industry guidelines with their social media marketing. According to the study, conducted over one week this summer, 75% of these companies’ non-sponsored posts on platforms like Facebook, Instagram, X, and TikTok failed to include problem gambling support messages or a helpline number, as required by the American Gaming Association (AGA).

The Study’s Findings

The research, which analyzed 1,353 social media posts published between July 29 and August 4, 2023, found that 1,012 posts may have violated the AGA’s responsible marketing code. These posts reached an estimated 29 million views. In contrast, all of the 310 sponsored ads observed during the same period adhered to the AGA’s standards.

Despite these findings, the AGA pushed back, calling the study an “irresponsible misinterpretation.” Joe Maloney, AGA’s Senior Vice President, argued that not all social media posts should be classified as ads. He pointed out that the AGA’s code only applies to posts that directly link to real-money sports betting services.

Rapid Growth of Social Media Marketing

The four companies targeted by the study—BetMGM, DraftKings, ESPN Bet, and FanDuel—have leaned heavily on social media to promote sports betting in the 38 states where it is now legal. With more than 237 social media posts and ads published daily, the companies are tapping into a vast audience. However, experts warn that this constant exposure normalizes gambling and increases risk among young and vulnerable users.

Raffaello Rossi, a lecturer at the University of Bristol and co-author of the study, stated:
“It feels like they are doing anything just to get people signing on… This relentless exposure can make gambling seem like a normal activity, increasing participation and risk among young and vulnerable groups.”

AGA’s Response to the Allegations

While the AGA acknowledged that all paid-for ads complied with its code, it disagreed with the study’s interpretation of social media posts as advertisements. Maloney stated:
“Like companies across other industries, sports betting operators provide relevant, engaging content to customers designed to maintain brand awareness without promoting a specific offering covered by the code, like sports betting.”

The AGA’s marketing code, first published in 2019 and updated in March 2023, requires that any operator-controlled messages on digital platforms comply with the organization’s responsible gambling guidelines, including the inclusion of a conspicuous responsible gaming message and a helpline number. Yet, the study identified that a significant number of posts from BetMGM, DraftKings, ESPN Bet, and FanDuel failed to meet these standards.

Call for Stricter Regulation

The study’s authors are calling for stronger oversight and federal legislation to ensure consistent regulation of gambling advertising across the U.S. They argue that the current state-based regulations are insufficient, allowing gambling companies to avoid full compliance.

Rossi emphasized the need for more stringent rules:
“Social media posts are clearly seen as advertising now… The aim is to promote the product or promote the brand. The industry has been growing so fast, and regulation hasn’t kept up.”

While the AGA maintains that its members follow robust state-based rules and federal standards, Rossi and his team believe that federal legislation would create a uniform framework for gambling ads.

A Growing Concern

As sports betting continues to expand in the U.S., companies like FanDuel, DraftKings, and BetMGM are coming under increased scrutiny for their marketing practices, particularly on social media. The lack of consistent problem gambling messaging in many of their posts raises questions about the industry’s commitment to responsible gaming. As the market evolves, the push for stronger regulations and federal oversight may continue to gain momentum.