As Publishers Embrace Sports Betting, Advertisers Ante Up

Gambling has enjoyed a handsome makeover in recent years—and marketers have taken notice of it. In the three years since a Supreme Court ruling struck down a federal law prohibiting sports betting, sports publishers—including Barstool Sports, Sports Illustrated and Gannett—have inked multiyear partnerships with casino operators and sportsbooks. Brands and the media buyers that represent them have largely welcomed their new business partners, and brand safety concerns posed by the influx of gambling content have mostly melted away, multiple sources told Adweek. The legalization of the industry, combined with its ability to attract millions of fixated eyeballs, has warmed brands to advertising alongside editorial content laced with references to lines, odds and splits. “There is already a clear association between sports and sports betting in most instances, so it’s more a question of adjacency,” said Brian Wieser, global president of business intelligence at GroupM. “If you can manage the execution in a way that is innocuous, it’s entirely possible that the two can coexist.” As sports publishers navigate a new era of legal gambling, which industry experts predict could reach $40 billion in value by the end of the decade, they have found willing copilots in their advertising partners. “Five years ago, … most betting activity was illegal outside of Nevada and Atlantic City,” Erika Nardini, CEO of Barstool Sports, told Adweek. “But I think that stigma disappeared. If you look at any mainstream broadcast, half of the commercials are about sports betting. It’s the new credit card.” The normalization of gambling When executives at Gannett, the parent company of USA Today, sat down to evaluate a potential partnership with a casino operator, they were heartened by the numbers they saw. Nearly as many Americans gambled last year as consumed an alcoholic beverage––64% compared to 69%. And 57% of gamblers are women, a figure that appealed to the publisher, whose audience skews female. “Bottom line: The stats alone certainly didn’t warrant any blowback,” Gannett CEO Michael Reed said. “And once the federal government legalized online gambling, it became apparent that it would be legal everywhere.” That was enough to allay any concerns Gannett had as it moved forward with a five-year, $90 million deal with Tipico, an international sportsbook based in Malta. Unexpected benefits Publishers that signed deals with casino operators and bookmakers make money on customer referral fees, and they certainly enjoy the increased traffic driven by anxious bettors. But the deals also have other ancillary benefits. Barstool Sports' partnership with Penn National Gaming has led to around 15 new hires, Nardini said. At Gannett, the new business generated with Tipico could lead to between 30 and 50 new roles, Reed estimated. In providing readers with critical information on injury reports and other data integral to informed wagering, the publishers also deepen the value they offer to readers, which Gannett hopes to translate into a subscription bump. The publisher attracts 53 million sports enthusiasts every month, and sports content is its single biggest driver of subscription growth, Reed said. Its gambling editorial is not paywalled, but it serves a crucial top-of-funnel function. The perks extend into the physical world, too. Authentic Brands Group, which operates Sports Illustrated and helped it pen a deal with U.K.-based 888, launched SI Tix in June. The product allows sports fans to purchase tickets to games within the SI ecosystem, an upsell it offers alongside merchandise, both of which benefit from the sports betting flywheel. Accounting for brand concerns While most brands have expressed few objections to advertising alongside gambling content, publishers have been proactive in their attempts to accommodate any potential conflicts. At Gannett, executives have not yet formalized the guardrails they plan to implement, but common sense will be the primary criterion. Some brands will want to stay away from betting content, and certain sections of the site will remain free of wager-related material, Reed said. “If anybody in our newsrooms feels like we are crossing a line, then we will bubble it up and have a conversation,” he said. “But I don’t think you're going to see all the lines for tonight's games on Page One.” Barstool and Gannett both echoed sentiments about proceeding cautiously when it comes to content that could influence someone to gamble, especially if it intersects with alcohol promotion. “We are all in on sports betting. It’s great; our fans love it. We are very authentic in how we do it, and it’s great business,” Nardini said. “There are people who are afraid of it, ashamed of it and rigid about it. We are not any of these things.”

Sports Marketing News

As Publishers Embrace Sports Betting, Advertisers Ante Up

Since its legalization, gambling has largely shed any brand safety concerns

Mark Stenberg

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Mark Stenberg