Are Sports Sponsorship Lucrative for Betting Houses?
If the gambling industry is certain of something is the potential of sports betting around the world. With the USA and the recent 2023 sports betting legalization in Brazil, many casinos and operators saw the opportunity to promote themselves by sponsoring famous sports teams and leagues. But is it a lucrative partnership? Here’s a closer look at how betting houses are growing authority by sponsoring football teams.
The Impact of Betting Sponsorships
Sports are a significant media force worldwide. During major football events, players and teams hold considerable influence over public opinion and trends. The same applies to casinos. This is why many football teams are sponsored by online casinos or betting houses. These sponsorships have led to a substantial increase in online casino users. On game days, millions of people watch live broadcasts globally, and when they see the sponsor’s logo on team kits or stadium ads, many are tempted to create new accounts with these companies, or even place bets on their teams during matches—often through the sponsor’s betting platform.
Sports events offer visibility and brand awareness, attracting a diverse audience. A single marketing campaign during a major event can reach millions, and that’s the reason why associating with popular sports teams can help betting houses boost their authority. It also enhances their credibility and attracts fans who enjoy both sports and online betting. Seeing your favorite team being sponsored by a casino will automatically make you feel like it’s a reliable company, which is great for online players who want to enjoy their free time safely.
For online casinos entering new markets, sponsoring a local sports team or event can also be an effective strategy. It helps in establishing an initial player base and gaining local traction. For this reason, many new casinos in Brazil sponsor major league football teams, including Atlético-MG (Betano), Atlético-GO (Amuleto Bet), América-MG (Pixbet), Avaí (Pixbet), Botafogo (Blaze), Fluminense (Betano), and São Paulo (Sportsbet.io).
How Does Demography Influence This Trend?
This movement by casinos and betting houses has been anticipated since 2018, when the Federal Government sanctioned Law 13.756/2018, authorizing the Ministry of Finance to regulate sports betting licensing in Brazil. Despite this, regularization has yet to be implemented by President Jair Bolsonaro (PL) in order to make it possible for media and casinos to become partners in the country.
It also made Brazilians increase their consumption of paid digital entertainment. This trend grew even more after the pandemic, including online casino games like poker and bingo, and even the well known slots games, which are the current favorites. That’s why most betting houses in Brazil also offer slots and live casino section games.
A study by KTO betting website shows that the population size of an area can help measure online activity, with 87% of Brazilians living in large cities. Most of the sponsored teams are also from the states with the biggest gambling activity demographics, like São Paulo, Rio de Janeiro and Minas Gerais. People living in these areas tend to be more present online and enjoy gaming, which includes placing bets while watching games and other big events online and with friends.
Some Future Projections
According to an article by SponsorUnited, the US sports betting market, projected to exceed $40 billion by 2030, is booming with sponsorship deals. FanDuel and DraftKings lead the way in the USA, partnering with entities like Genius Sports, the NBA, and NFL RedZone. Over 25 NFL teams now have gambling sponsors, integrating betting into fan experiences with in-stadium kiosks and mobile apps.
The Fanatics’ acquisition of PointsBet’s US business indicates a trend towards global industry consolidation. Sponsorship revenue from sports betting brands reached nearly $300 million in the 2022-2023 seasons, with the number of deals in major US sports up 70% since 2020. This trend is set to grow as digital engagement strategies evolve, and although we can’t see the detailed result in numbers for countries where the law is newly approved, it’s easy to foresee successful partnerships based on the worldly results.
The AI usage in marketing and advancement of betting is likely to change how sports stories are told. We can expect a shift in scenario for leagues sponsored by great brands and betting houses and their storytelling including bigger and more interactive scripts. The mutual benefits for both parties is set not only to provide increased visibility and brand credibility, but also essential financial support for sports teams and innovations.