Colorado Study Links Gambling Ads to Increased Activity

There is a new study from the University of Colorado that is shining a light on the impact of gambling ads.

A research team at the university conducted the study and focused on the relationship between gambling ads and betting-related activity. They included ads from broadcasts, social media feeds, and other places where bettors are exposed to gambling operators' marketing.

It found that more ads led to more activity and increased searches for help with problem gambling.

How Did the Study Establish a Link?

Researchers found their results by conducting two distinct studies.

The first study compares state-level gambling across paid media with Google searches for help with problem gambling. The second involved studying the advertisements seen by 419 mobile sportsbook customers and their betting habits after they were seen.

An advertisement was considered a “gambling ad” if they contain one or more of the following:

• Mentions betting or wagers
• Encourages participation in gambling
• Promotes a gambling category

As a result, the study captured ads for online sportsbooks, casinos, and even prediction market platforms like Kalshi or Polymarket.

Spend Led to More PG Searches

While the link between gambling ads and activity is hardly surprising, one finding from the report was surprising.

Researchers found that state-level ad spending was the biggest driver for problem gambling-related searches. This includes states where sports betting and online casinos remain illegal. As a result, ad spending plays an even larger role than a state’s legal status.

Many non-betting states limit local gambling commercials, but residents still see ads while watching nationally televised events. They also see ads from sports prediction markets, which states currently lack the authority to regulate.

Two of the most prominent non-betting states are California and Texas, two of the largest markets in the US. Kalshi and Polymarkets have offered prediction platforms in both markets, and rivals such as DraftKings are moving their own into non-betting states. As a result, gambling ad spend is spiking in both markets, which gives us reason to believe a problem gambling spike is coming.

Doesn’t Include Non-Betting Ads

The Colorado study further confirms the negative impact of gambling-related ads, but it failed to capture some of the guerrilla-style ad tactics from some of the country’s largest gambling operators.

Over the years, some of the largest online sportsbooks and casinos have found loopholes in advertising restrictions in certain markets. One way they do this is by promoting fun facts, jokes, or other non-betting posts on social media. 

For example, DraftKings’ accounts often post clips from major sporting events with states or trivia on them. While they don’t solicit wagers from viewers, their name and logo remain prominent. Many social media platforms promote posts based on users' viewing habits, so a quick look at a FanDuel post about the NLCS can lead to more of the operator’s posts appearing in the user's timeline.

FanDuel is currently in hot water for using custom videos to entice VIP customers to place wagers. While the videos don’t mention gambling specifically, they act as a reward for loyal users. This can lead bettors to place wagers, believing similar rewards may come in the future.