According to the American Gaming Association, 17.6 million people will place a Super Bowl bet online or at a physical sportsbook on Sunday.
Operators are not only making a profit, however. The operators of the sportsbooks have launched a huge advertising campaign to reach millions of sports fans, who will be watching the matchup between the Los Angeles Rams and the Cincinnati Bengals .
NPR's Adam Candee, managing director of the trade publication Legal Sports Report said that TV sportsbook advertising has increased exponentially in this year and the past couple of years.
Candee stated that legalized gambling has seen a sudden rise in the number of states. This has led to sportsbook operators competing for the new large customer base. The Super Bowl is their latest chance to market themselves to potential punters.
It is happening right now as they battle for customers. This is because it is an essentially new industry that is growing up from the ground," said he.
According to the investment management firm ARK, sports gambling could grow to $37 billion by 2025.
Over the last four years, legal sports betting has boomed
The U.S. Supreme Court ruled in 2018 that there was no ban on betting other than Nevada. This basically gave the green light for states to allow betting if they wanted to.
Many did. Many did. The flourishing industry is also generating tens to millions in tax revenue.
Each state has its own rules about how you can place a bet on sports. Some states restrict sports gambling to just a few casinos in-person, while others allow anyone over the age of 18 to place an online bet.
What was once a niche entertainment industry centered in Las Vegas, has become a national mega-business that people enjoy from their living rooms.
The National Council on Problem Gambling warned that this has caused a increase in people with gambling disorders.
Candee stated that major sports-betting companies are investing heavily in advertising. They're willing to even follow the business model of companies like Amazon, which lost money in the short-term, in order to attract a large customer base they hoped would stay for many years.
He said, "You have early movers that are well capitalized and are trying to gain as much market share possible."
According to research firm MediaRadar, the gambling industry (which includes sportsbooks) spent $488 million advertising between November 2020 & November 2021.
Candee stated that Caesars Sportsbook announced recently it would spend $1 billion on marketing and acquisitions. Companies such as DraftKings or FanDuel also lost money in the midst of a massive advertising campaign.
Some online businesses are trying to lure unsuspecting gamblers with deceptive deals as a result of the sports-betting boom. On Thursday, Letitia James , New York Attorney General, warned residents about the dangers of placing bets online on sports. The state legalized sports betting last month.
Sports betting was once a problem for the NFL. The Super Bowl is now one of the most important events in the industry.
The NFL and other major leagues have opposed legalized sports betting for years. This was partly because they fear cheating and match-fixing.
In a 2012 deposition, Roger Goodell, the NFL Commissioner, stated that gambling was the No. ESPN reported that the number one threat to professional football in America was gambling.
Since then, a lot has happened. The NFL has partnered seven sportsbook operators to allow them to purchase in-game ads. The top-tier partners of the league -- Caesars DraftKings, FanDuel and FanDuel -- were capable to integrate betting content into NFL's app and website.
These companies are ready to spend millions on Sunday's Super Bowl.
According to Legal Sports Report, Caesars and DraftKings plan to air national TV commercials during in-game television, while FanDuel plans to run local and pre-game ads.
NBC declaredit had sold all of its Super Bowl TV spots, some of which were priced at $7 million per 30 seconds