The gambling advertising landscape has transformed from heavily restricted local practices into a sophisticated global digital ecosystem. Our research reveals how regulatory shifts, platform power, and technological innovation are reshaping how operators reach customers—and the significant compliance risks they now face.
The Evolution of Gambling Advertising: From Prohibition to Platform Control
Gambling advertising has undergone four distinct evolutionary phases over the past 175 years. Each transition was catalyzed by either regulatory reform or technological disruption, fundamentally altering how operators communicate with potential customers and how the public perceives gambling.
The journey began with severe legal constraints. The UK’s 1845 Gaming Act and subsequent legislation imposed strict controls on gambling advertising, while US federal law prohibited most gambling promotion outright. This restrictive environment persisted for over 150 years.
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The UK Liberalization Shock
The UK’s Gambling Act 2005, implemented in September 2007, marked the first major regulatory shift. For the first time, this legislation permitted all gambling firms to advertise on television, whereas previously only football pools, bingo premises, and the National Lottery could advertise.
The impact was immediate and dramatic. Television gambling advertising increased from 152,000 spots in 2006 to 1.39 million by 2012—a 600% surge in just six years. Gambling’s share of all television advertising rose from 0.7% in 2006 to 4.1% by 2012.
The UK experience demonstrates how regulatory liberalization consistently triggers an initial advertising gold rush, followed by public health backlash and subsequent regulatory tightening. This boom-and-backlash cycle has repeated across multiple markets.
The US Post-PASPA Advertising Explosion
In the United States, the Supreme Court’s Murphy v. NCAA decision struck down PASPA on May 14, 2018, freeing individual states to regulate sports wagering. This triggered an unprecedented advertising boom.
Sports betting ad spending rose from $100 million in 2018 to approximately $2 billion in 2021. However, this peak proved unsustainable. Total advertising spend related to sports betting declined by $210 million in 2023, representing a 15% year-over-year decrease.
Television advertising experienced even sharper declines. TV ad volume fell 11% year-over-year in 2023 and has decreased 33% since the 2021 peak. Sports betting ad volume was down 4% across all channels in 2023, having declined 20% from the 2021 peak.
The era of unrestrained advertising spending has definitively ended. Operators are now reallocating budgets from mass-market television toward more efficient digital channels and targeted activations as markets mature.
Technology as the Primary Catalyst
While regulatory changes opened doors, technological shifts provided the acceleration. The internet created new frontiers for gambling websites and affiliate marketing networks. Smartphones turbocharged growth by creating 24/7 accessible gambling environments.
The most recent disruptive phase involves platform-influencer ecosystems. TikTok, Instagram Reels, and Twitch have become epicenters for gambling promotion. Creators and influencers now serve as primary customer acquisition channels, using short-form video, live streams, and affiliate links to reach massive audiences.
The Shift from Growth to Profitability
Market maturation has forced a strategic recalibration. Leading operators have moved from land-grab strategies to lifetime value optimization. This shift reached a milestone when FanDuel became the first US sportsbook to report a profitable quarter in Q2 2022, recording $22 million in earnings before interest, taxes, depreciation and amortization.
FanDuel’s CEO Amy Howe attributed this success to strong player values relative to customer acquisition costs, even as the company increased acquisition investments. This marked a strategic industry shift from growth-at-all-costs to profitability focus.
The US market has definitively pivoted from a land-grab growth mindset to profitability focus, with operators now prioritizing sustainable unit economics over raw volume acquisition.
The Modern Advertising Technology Stack
Today’s gambling advertising ecosystem operates on sophisticated technology infrastructure. Programmatic advertising automates buying and selling through Demand-Side Platforms, Supply-Side Platforms, and ad exchanges. Real-Time Bidding auctions impressions in milliseconds based on user data.
Operators leverage this to target specific segments at scale—such as males aged 25-45 in legal betting states who have visited sports news sites. However, the system faces challenges from ad fraud and supply chain opacity, making it difficult to ensure ads don’t reach unintended audiences including minors.
| Technology | Function | Primary Risk |
|---|---|---|
| Programmatic/RTB | Automated ad buying at scale | Fraud and inappropriate placements |
| Dynamic Creative Optimization | Real-time personalized ads with live odds | Creates urgency and FOMO triggers |
| Geolocation | Compliance and jurisdiction verification | VPN spoofing and proxy evasion |
| Privacy Tech (ATT/Sandbox) | User tracking limitations | Measurement accuracy degradation |
Dynamic Creative Optimization personalizes ad creatives in real-time using AI. For sportsbooks, this enables integration of live odds and scores directly into banner ads. The primary compliance risk is that this immediacy creates powerful urgency and FOMO, encouraging impulsive betting decisions identified as key triggers for problem gambling.
The Influencer and Affiliate Wild West
While traditional advertising contracts, a professionalized ecosystem of TikTok creators and affiliate marketers has become dominant in customer acquisition. This channel drives enormous volume but operates with significant compliance risks outside traditional ad audits.
The TikTok gambling ecosystem comprises a structured hierarchy. Affiliate influencers earn commissions for driving sign-ups via unique promo codes. Paid brand influencers receive direct sponsorships. Organic tipsters build communities around perceived expertise. Top-tier creators leverage fame to launch merchandise or digital products.
Despite platform policies prohibiting gambling marketing without written permission, violations are rampant. The September 2024 UK ASA ban on misleading TikTok ads from five social casino brands demonstrates the enforcement gap between policy and reality.
Regulatory actions highlight the risks. In the Netherlands, the KSA fined bet365 €400,000 in March 2023 for directing advertisements and bonuses to young adults aged 18-24, a protected vulnerable group. The regulator emphasized that young people’s developing brains make them particularly vulnerable to gambling addiction.
Platforms Become De Facto Regulators
Major technology platforms have emerged as powerful quasi-regulators, often imposing stricter rules than government mandates. TikTok requires explicit prior written permission via sales representatives. Advertisers must provide valid licenses for target markets and adhere to age-gating requirements often set at 25+.
Meta requires prior written authorization through Meta Business Suite, with all ads prohibited from targeting users under 18. Google requires certification for each specific target country, proof of valid licenses, and responsible gambling information on landing pages.
Compliance is not optional. Violations can result in immediate account suspension, representing a significant commercial penalty. Platform approvals have become as critical as gaming licenses for operators seeking to advertise.
Youth Exposure Remains a Critical Concern
Data reveals widespread exposure of young people to gambling advertising with measurable impact on attitudes and intentions. Research found that 66% of children and young people aged 11-24 reported seeing gambling promotions on their social media channels, most likely in the form of video adverts.
The most common exposure routes were television (85%), shops on the high street (70%), and social media (66%). This occurs despite gambling advertising being banned from media designed for young people since 2007.
A Gambling Commission survey of 2,881 children aged 11-16 found that 70% reported seeing advertisements on social media and 66% on other websites. The pervasive and positive portrayal of gambling, especially its integration with sports, contributes to normalization.
The widespread exposure makes gambling seem like a harmless and socially acceptable activity, reducing critical thinking about risks among young audiences who are particularly vulnerable to advertising influence.
Landmark Enforcement Establishes New Standards
Recent enforcement actions have established clear boundaries. In the United States, the New York Attorney General reached separate $6 million settlements with DraftKings and FanDuel in October 2016 to resolve lawsuits alleging false and deceptive advertising practices.
The settlements, totaling $12 million, represented what the AG’s office called “the highest New York penalty awards for deceptive advertising in recent memory.” The companies were found to have misled customers about expected winnings and advantages enjoyed by professional players.
Regulators in US states including Ohio, Pennsylvania, and Massachusetts have banned the term “risk-free” in advertising, forcing operators to shift to “bonus bets.” This follows the principle that such terminology is deceptive if offers have hidden wagering requirements.
- The UK ASA has banned multiple advertisements featuring active high-profile footballers, establishing that such figures have strong appeal to under-18s and breach advertising codes
- UK Gambling Commission fined Betway £408,915 in 2022 for placing its logo on children’s pages of the West Ham United FC website, including a teddy bear coloring page
- Sky Betting and Gaming was fined £1.17 million in 2022 for sending promotional emails to over 41,000 self-excluded customers
Psychological Appeals and Public Health Impact
Gambling advertising employs powerful psychological appeals that drive engagement but also contribute to public health harms. Six core appeals appear consistently across channels.
Social bonding and community framing presents betting as an extension of team loyalty. Financial inducements and “risk-free” framing use incentives to drive immediate action. Illusion of control and skill presents gambling as analyzable rather than chance-based.
Humor and banter create positive emotional associations. Urgency and FOMO create need for immediate action. Excitement and thrill associate gambling with intense positive emotions. Each appeal carries specific vulnerabilities for different population segments, with young adults and problem gamblers particularly susceptible.
Measurement in a Privacy-First World
Achieving profitability requires sophisticated measurement frameworks. Customer Data Platforms unify data from all sources to create rich player profiles. Mobile Measurement Partners provide unbiased third-party attribution by centralizing marketing data.
No single methodology suffices for accurate measurement. A pragmatic framework uses three complementary approaches working in concert.
Marketing Mix Modeling serves strategic planning for long-term budget allocation. It remains resilient to privacy changes as it uses aggregated data, though it cannot provide real-time tactical insights.
Multi-Touch Attribution enables tactical optimization for day-to-day campaign adjustments. It provides near real-time insights but is highly vulnerable to privacy restrictions and tracking limitations.
Incrementality Testing serves as causal “ground truth” to validate other findings. Common methods include geo-based studies, ghost ads, and PSA controls. While this approach measures true causal impact, it can be complex and costly to run at scale.
The 2025-2030 Outlook
The next five years will be defined by technological acceleration and regulatory tightening. Generative AI will become the core advertising engine, powering hyper-personalized promotions, automated creative generation, and real-time bidding optimization.
Augmented and virtual reality will introduce immersive advertising formats, including AR odds overlays on live sports, in-stadium activations, and fully immersive VR sportsbook lounges.
Regulatory frameworks will tighten significantly. Proposed US legislation such as the SAFE Bet Act seeks to restrict AI-powered individualized offers and limit advertising during live sporting events. The UK’s post-White Paper reforms focus on using adtech to target ads away from vulnerable people rather than implementing blanket bans.
The EU’s Digital Services Act imposes new obligations for algorithmic transparency, requiring operators to explain how their targeting systems work and give users meaningful control over personalized advertising.
Strategic Imperatives for Stakeholders
Operators must embrace responsible AI, using technology not only for personalization but also for compliance, KYC, and responsible gaming tools. They should actively use adtech to create exclusion lists and target ads away from children and vulnerable individuals.
Platforms should develop responsible tools built into advanced AI advertising features and empower users with clear, simple tools to opt out of seeing gambling-related advertising.
Regulators must adapt frameworks to address AI-powered advertising complexities, focusing on algorithmic transparency, and strengthen consent rules for direct marketing to give consumers more control.
Key Findings and Implications
The data reveals clear patterns across markets and timeframes. Regulatory liberalization consistently triggers boom-and-backlash cycles, as evidenced by the 600% increase in UK television advertising following the 2005 Gambling Act and the rapid rise and subsequent contraction of US sports betting advertising post-PASPA.
Technology platforms have emerged as powerful de facto regulators, often implementing stricter controls than government mandates. Their certification requirements and enforcement mechanisms now represent critical business considerations alongside traditional gaming licenses.
Widespread youth exposure to gambling advertising—particularly on social media—remains a pressing public health concern despite existing regulations. The pervasive integration with sports content contributes to normalization among vulnerable audiences.
Looking ahead to 2030, the industry faces a dual imperative: leveraging AI and immersive technologies for competitive advantage while simultaneously implementing robust responsible advertising practices. Success will require operators to treat platform compliance with the same rigor as gaming licenses.
The winners in the next era of gambling advertising will be those who recognize that sustainable growth depends on earning and maintaining public trust through responsible practices, not those who seek to exploit regulatory gaps or push the boundaries of acceptable marketing.
Methodology
This research synthesizes data from regulatory documents, industry reports, academic research, and market analysis covering the period from 2000 to 2025. Particular focus was placed on the post-PASPA era in the United States and post-Gambling Act 2005 developments in the United Kingdom.
All sources were systematically verified through web search to ensure accuracy and accessibility. Only claims supported by credible primary or secondary sources were included in the final analysis.
Sources
This research was compiled from the following verified sources:
- Ofcom (2013) – Trends in Advertising Activity: Gambling – https://www.ofcom.org.uk/
- Pitt, Thomas, Bestman, Stoneham & Daube (2019) – Recall and awareness of gambling advertising and sponsorship in sport in the UK – https://harmreductionjournal.biomedcentral.com/articles/10.1186/s12954-019-0291-9
- Adkisson (2025) – The Past, Present, and Future of the Sports Gambling Ad – https://mayorsmanor.com/2025/01/the-past-present-and-future-of-the-sports-gambling-ad/
- Global Sports Insights – How Sports Betting is Changing U.S. Sports Fan Engagement – https://globalsportsinsights.com/how-sports-betting-is-changing-u-s-sports-fan-engagement/
- American Gaming Association (2024) – 2023 Sports Betting Advertising Trends – https://www.americangaming.org/resources/2023-sports-betting-advertising-trends/
- Ipsos (2020) – The effect of gambling advertising on children, young people and vulnerable adults – https://www.ipsos.com/en-uk/effect-gambling-advertising-children-young-people-and-vulnerable-adults
- House of Lords Library (2024) – The impact of gambling marketing – https://lordslibrary.parliament.uk/the-impact-of-gambling-marketing/
- Office of the New York Attorney General (2016) – A.G. Schneiderman Announces $12 Million Settlement With Draftkings And Fanduel – https://ag.ny.gov/press-release/2016/ag-schneiderman-announces-12-million-settlement-draftkings-and-fanduel
- Legal Sports Report (2016) – DraftKings, FanDuel Pay $6 Million Each To Settle New York Case – https://www.legalsportsreport.com/11901/draftkings-fanduel-pay-6-million-in-new-york-case/
- The Lines (2022) – FanDuel Sportsbook Posts First Profitable Quarter – https://www.thelines.com/fanduel-sportsbook-profitable-quarter-2022/
- Gaming Today (2022) – FanDuel Becomes First US Sportsbook to Achieve Profitability – https://www.gamingtoday.com/news/fanduel-first-us-sportsbook-profitability/
- Gambling.com (2022) – FanDuel Becomes First U.S. Online Operator to Record Profit – https://www.gambling.com/us/news/fanduel-becomes-first-us-online-operator-to-record-profit-3525100
- Yahoo Finance (2022) – FanDuel posts profitable quarter despite leaning in harder on customer acquisition – https://finance.yahoo.com/news/fanduel-profitable-quarter-customer-acquisition-earnings-170811528.html
- NEXT.io (2023) – KSA clampdown continues with €400k fine for bet365 – https://next.io/news/regulation/ksa-fines-bet365-in-netherlands/
- iGaming Business (2023) – Bet365 fined €400,000 in the Netherlands over advertising breach – https://igamingbusiness.com/legal-compliance/bet365-fined-e400000-in-the-netherlands-over-advertising-breach/
- European Gaming (2023) – Netherlands Gambling Regulator KSA Fines Bet365 for Marketing Breaches – https://europeangaming.eu/portal/compliance-updates/2023/03/14/131794/netherlands-gambling-regulator-ksa-fines-bet365-for-marketing-breaches/
- ESPN (2016) – DraftKings, FanDuel will pay $6 million each in settlement of NY suit – https://www.espn.com/sports-betting/story/_/id/17886248/draftkings-fanduel-pay-6-million-settlement-ny-suit
- Fortune (2016) – DraftKings and FanDuel Settle New York Lawsuit for $12 Million – https://fortune.com/2016/10/26/draftkings-fanduel-settlement/
- House of Commons Library (2024) – Gambling advertising: how is it regulated? – https://commonslibrary.parliament.uk/research-briefings/cbp-7428/
- Gambling Commission (2023) – Young People and Gambling 2022: Official statistics – https://www.gamblingcommission.gov.uk/report/young-people-and-gambling-2022/
