Gambling underwent a renaissance when it became possible to play on any internet-connected device, anywhere in the world. This was evident during the pandemic, when the brick-and-mortar casinos were forcibly closed, yet the industry only seemed to get stronger due to online growth. While it would be convenient to suggest that this growth was natural, we have to pay attention to the marketing and legislative efforts.
Online gambling is sharing a space similar to Bitcoin in that it’s striving to become legitimized through legislation. In the US, Maryland, Maine, and Ohio are undergoing hearings. For example, Maine is now one step closer to launching sports gambling. Concerns surround not just the activity, but submissions of tax returns and restrictions on advertising, in particular on college campuses and television. These are some of the hurdles that casinos face, as they need to balance compliance around the US as each state has its own rules.
In the US, gambling advertising enjoys some protection under the First Amendment, with emphasis placed on preventing misleading promotions rather than outright prohibition. Meanwhile, Australia adopts a stricter stance, with comprehensive federal and state regulations aimed at curbing gambling ads, especially around live sports.
Nevertheless, online casinos, wherever they are in the world, do not need to advertise on television or college campuses, as they already have a well-oiled machine online. This is evident in GambleOnlineAustralia.com’s list of real money casinos, as they fiercely compete through welcome bonuses.
Online promotional offers
The battleground for new customers is almost entirely fought on welcome bonuses (besides sportsbooks, which continue to use traditional exposure advertising). The evolution of this advertising method has been birthed from the democratisation of casinos, in that it’s never been easier or cheaper to start one.
Most online gambling sites, whether they’re sportsbooks or casinos, use third-party infrastructure to help determine odds, run games, and so on. The barriers to entry are reasonably low, with licensing rather than infrastructure being one of the biggest barriers.
When you have many low-cost casinos vying for attention, the natural progression has been an increase in the cost per acquisition of customers. PPC and adverts are not enough; they need to be accompanied by getting something for free, such as 20 free spins or a free $20 bet.
Unfortunately for regulators, they do not usually make much of an impact on these promotions. While many will restrict certain forms of promotions, or even outright operating, from a certain state, this doesn’t have jurisdiction over casinos operating outside the region. And, given that the customers are usually last to face restrictions (gambling is often legal in states where it’s not legal to run an online gambling company), it has meant gambling sites flock to places like New Jersey and Michigan for their broader acceptance.
Consumer behaviour
It’s also important to highlight the declining prominence of traditional marketing in general, due to consumer behaviour. In the US, there are more eyes on streaming now than on cable television, and the amount spent on TV advertising in general has fallen steadily since 2018.
Ultimately, the demographic for television viewership is disproportionately older now, in part because some of the older demographic are technophobic or enjoy passive TV watching. Casinos are not unique in their focus on mobile ads, but they are unique in that very often, it makes the most sense legally.
There is also more potential for targeted advertising, which can increase engagement. AI is playing an increasing role in curating bespoke feeds for people’s preferences, and casino gaming is included in that. One tactic that has yet to be explored much is the targeting of traditional gamers (those who enjoy video game content), with casino games that are focused on skill and stories. This could become a more common way to get people into casinos, through targeted gaming experiences that do not feel like a traditional casino.
Going forward
AI and VR will be areas that casinos can leverage, but regulations and online advertising will remain the key areas. Many countries are moving in the opposite direction (restricting online gambling), while some areas in the US are moving towards legitimization. It is unlikely we settle into a steady state anytime soon, and each policy change will become either a threat or an opportunity for American gambling companies.
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