The gaming industry here in the United States is changing at a rapid pace. As the legalization of sports betting sweeps the country, there has been a significant shift in attitude towards gambling in general. This has seen an activity once banned across the country now seen as both socially acceptable and a way to fund public programs.
This has also led to considerable investment by online gambling companies in the US market. Here we take a look at the biggest spenders.
DraftKings is one of the biggest names in fantasy sports and ever since sports betting was legalized in New Jersey in 2018, the company has prioritized its sports betting products. This has resulted in significant investments in several sports.
The company has signed partnership agreements to become the official sports betting partner of the National Football League and several NFL franchises. He also signed similar deals with NBA and NBA teams. The company invested heavily in the UFC last year, signing a $350 million deal with the organization.
The company recently released its year-end data for 2020, showing that it spent around $500 million on marketing throughout the year. This has allowed the company to grow its monthly unique players from 684,000 in 2019 to 830,000 by 2020. Thanks, no doubt, to the numerous partnership agreements mentioned above.
DraftKings has also entered the online casino market and now operates in five states: Connecticut, Michigan, New Jersey, Pennsylvania and West Virginia. Although relatively new to the industry, according to review site USACasinoSites.org, DraftKings is now considered one of the best options in the country. This preemptive move in online casino gaming puts DraftKings in pole position to dominate the online casino market if iGaming is legalized in more states.
DraftKings has been the louder of the two biggest sports betting operators in the United States, but FanDuel has made similar investments in several sports.
That said, the company’s marketing spend was less than half of the $500 million spent by DraftKings. Incredibly, despite lesser marketing spend in 2020, the company still managed to become the largest sports betting operator in terms of registered users. At present, the company has over 12 million registered users in the United States alone. Impressive numbers, especially considering that it now has 4 million more users than DraftKings.
Even with such a grip on the market, the company decided to raise the bar. While we haven’t seen the numbers released for the full year yet, the first half of 2021 saw FanDuel spend over $300 million on marketing. This suggests that when the final numbers come in, its marketing spend for the year will eclipse that of DraftKings.
What about the rest?
Other companies such as PointsBet, BetFred and BetMGM are also spending heavily on marketing and advertising in their efforts to grab a piece of the American pie. However, they don’t spend anything near the big two.
For example, BetMGM, the betting subsidiary of MGM Resorts, has spent $100 million on marketing in the past 12 months. Australian online bookmaker Pointsbet has a similar budget as it seeks to carve out a 10% share of the US sports betting and iGaming market. While the company has committed $393 million to long-term marketing, the company spends between $20 million and $25 million during each quarter.
While the majority of online gaming companies focus on the sports betting industry, for now, many have taken the same route as DraftKings and launched online casino products in several key states. If, as many expect, iGaming follows the same path that sports betting has taken in recent years, we can expect to see that marketing spend soar to phenomenal levels as online casino legislation is passed in the United States. United.
Could we see an online gaming company surpass $1 billion in marketing spend in a single year? We certainly wouldn’t bet against it.
Category: Local News, NEWS