AdAge takes a look at the U.S. sports betting industry and how brands and agencies getting involved in the USD$35 billion market.
Writes Michael Applebaum:
Sports betting is not an easy business to break into—or break through. DraftKings and FanDuel are both owned by large public companies with deep pockets to spend on marketing, and both have vast legal and compliance teams to help navigate a patchwork of complex regulations that vary from state to state. Startup costs are steep, and in a category where most betting platforms offer essentially the same service, brands may have trouble separating themselves from the pack.
“Brands are fighting this long hard battle for market share, rising customer acquisition costs and getting high churn rates,” says Dave Edwards, exec VP of global business development at R3. “It’s hard for these sportsbook companies to differentiate themselves. Legally they’re really all the same, all regulated by the state and licensed.”