Ten years ago, nobody talked about it, except maybe as a punchline about the excess of Las Vegas. Five years ago, nobody participated in it, except the couple states who legalized the pastime early, or the few people ahead of the curve, taking part in fantasy leagues for money on apps like DraftKings and FanDuel.
Today, it’s nearly ubiquitous, with bombardments of television advertisements and billboards no matter where you go, what programs you watch. I’m talking, of course, about the sports betting industry. It’s rare to see a meteoric rise to power like the sportsbooks have enjoyed and even more interesting to peel back the curtain and learn why it’s taken place. Here’s a look at the path of the sports betting industry from an afterthought to a leading player in the American and global entertainment industries.
Promos, Promos, Promos
It goes without saying that well-targeted advertisements are critical to the success of any business. Advertisements that are too frequent or overdone might push customers away, while those that are too infrequent or poorly targeted could lead to wasting the advertising budget.
Sports betting platforms have refined advertising to an exact science, partly because the allure of winning significant money with a few taps on your phone makes their product especially marketable. For instance, one popular promotion is the risk-free bet, which allows first-time bettors to place a wager—often up to $500 or $1000—with the guarantee that if their bet fails, they’ll get a second chance to wager that amount again and possibly win back their money.
Another effective promotional strategy is the deposit match. Here, sportsbooks like BetMGM offer promotional vouchers, exemplified by the “BetMGM Bonus Code”, that match the amount of money you place in your first deposit. This providesnew bettors extra chances to start winning in the industry, leveraging these ini
The effectiveness of these strategies is evident, and for much of the past five years, the advantages of these promotions have extended beyond customer attraction. Most states have allowed sportsbooks to write off the money lost from these promotions as a business loss, which they can then deduct from their taxable earnings—a significant advantage, especially in states like New York, where sportsbooks might be taxed as much as 51 percent on their earnings.
While most states are beginning to tighten regulations around such deductions, the broad legality of mobile sports betting across the country means this is only a minor setback for the industry.
Diversifying Your Assets
Another strategy that has allowed the sports books to enjoy rampant success is the realization that people will place bats on just about anything if they’re given a chance to do so.
A few years ago, you might’ve only been able to place bets on major sports leagues like the NFL, NBA and MLB: wagers on upcoming games and the occasional futures bet like an upcoming Super Bowl champion or MVP winner.
These days, sportsbooks are offering bets on not only American sports but their overseas counterparts as well. Want to bet on the English Premier league or Indian cricket? You’re certain to find a sportsbook willing to field those bets, and the inclusion of prop bets on a single game and season outcomes— like how many home runs Aaron Judge will hit in a season or how many touchdown passes Patrick Mahomes will throw—give thousands of new opportunities for people to bet on every week.
Perhaps most exciting is the fact that the industry doesn’t show any signs of slowing down even as the novelty starts to die off.
Right now, many gambling platforms are starting to lobby with their respective state legislatures to make it possible to bet on things that aren’t even traditionally considered sports, like the scripted outcomes of WWE or the booming esports industry, which would make it possible to bet on thousands of different contests on a day to day basis. It’ll be intriguing to see what happens next with the industry.