A new investigation has found that the big four online brands appear to be routinely breaching the industry’s self-imposed marketing restrictions as gambling companies target users on social media.
Over the course of a week this summer, researchers from the University of Bristol found that more than 1,000 posts by BetMGM, DraftKings, ESPN Bet and FanDuel – 75% of non-sponsored content on Facebook, Instagram, X and TikTok – contained no gambling addiction support messages or helpline numbers.
The study concluded that rules set by the American Gaming Association (AGA), a gambling industry lobbying group, were “not being adhered to” by social media operators. The AGA disagreed, dismissing the findings as “irresponsible misinterpretations.”
Gambling has expanded rapidly across the United States in recent years, with sports betting now legal in 38 states and Washington, D.C. To fuel growth, betting operators are turning to social media to encourage users to place bets on their platforms.
“It feels like they’re doing anything just to get people to sign up,” said Raffaello Rossi, a marketing lecturer at the University of Bristol, noting that the four companies published an average of 237 social media posts and advertisements per day. “This relentless exposure makes gambling seem like a normal activity, which could increase participation and risk among young people and vulnerable groups.”
A team of researchers from the university examined 1,353 social media posts (viewed approximately 29 million times) posted by the four companies between July 29 and August 4. They concluded that 1,012 of those posts “may violate the provisions” of the American Gaming Association’s Responsible Marketing Code for sports betting.
During the same period, the researchers identified 310 ads that companies had paid to advertise on social media, all of which complied with industry regulations.
FanDuel and BetMGM declined to comment. DraftKings and ESPN Bet did not respond.
The AGA said it was “pleased” that all paid gambling advertising on social media had been found to comply with its rules, “but classifying every social media post as advertising ignores fundamental principles of brand communications,” said senior vice president Joe Maloney.
While the code states it covers “marketing and advertising of real money sports betting services,” the AGA only considers social media posts by real money sports betting services to be covered if they directly link to the real money sports betting service.
For example, last week, account X of FanDuel Sportsbook, one of the most popular sports betting platforms in the United States, posted about tennis pro Botich van de Zandschulp’s unexpected defeat of Carlos Alcaraz at the U.S. Open. The post included betting odds and a claim that the gambler had won $19,000 on the match, but it did not include a direct link to the FanDuel platform, nor did it include a support message or helpline for gambling addiction.
“Like businesses in other industries, sports betting operators provide relevant and engaging content to their customers aimed at maintaining brand awareness without promoting a specific service that would be subject to the Code, such as sports betting,” Maloney said. “It is an irresponsible misinterpretation to suggest that sharing sports facts, schedules or topics of discussion in tweets or posts on social media platforms constitutes advertising and therefore falls under our Code.
“We are proud of our members’ responsible advertising practices and commitment to maintaining strong industry standards, which continues to boost consumer confidence in our industry-wide commitment to responsibility.”
The AGA’s marketing code was first released in 2019, when operators in states that chose to legalize sports betting after the Supreme Court overturned decades-old bans in much of the U.S. launched a massive advertising campaign on television, radio, billboards and social media.
The latest version of the AGA’s rules, published in March 2023, states that “operator-controlled messages posted on digital media”, including social media, “must comply with all applicable provisions of these rules regarding the content of such messages”.
Industry representatives named in the code include executives from DraftKings, MGM Resorts International, which is co-owner of BetMGM, Penn Entertainment, the company behind ESPN Bet, and FanDuel.
Several provisions in the code are designed to promote “responsible” gambling, including that “each message will prominently feature a responsible gambling message and, where available, a toll-free helpline number.”
Researchers from the University of Bristol scrutinized social media posts from BetMGM, DraftKings, ESPN Bet and FanDuel and identified 1,012 posts that did not include such a message or a toll-free helpline.
Rossi said social media posts, whether sponsored or not, are “now clearly considered advertising” and “the purpose is to promote a product or brand.”
“Gambling companies are selling a highly addictive product, the industry is growing too fast and regulation is not keeping up,” he added.
The study made several policy recommendations, including federal legislation to ensure “consistent regulation” of gambling advertising and detailed guidance on the AGA’s regulations.
The AGA’s Maloney said legal operators already comply with “strict state-based” regulations on gambling advertising and are also “carefully following” broader federal advertising standards.
“Six years after sports betting was legalized, excessive federal regulation would only serve to bolster a highly visible illegal market and undermine the ability of state regulators and lawmakers to craft appropriate policy as the market continues to evolve,” he added.