Marketing and advertising are essential aspects of any industry.
For this reason, companies and brands worldwide spend billions annually to ensure consumers see their products and services.
In 2023, more than $730 billion was spent on advertising, a number that has been climbing year over year and is predicted to reach over $1 trillion by 2025. Online casinos and other gambling entities contribute millions to this total amount through extensive marketing aimed at attracting new players and keeping existing players coming back for more.
In this article, we’ll look at how much online casinos in various countries spend on advertising and see why marketing is becoming an increasingly lucrative industry.
Spending Habits
Official data on how much online casinos spend on marketing are not publicly available in many regions where they operate. However, certain governing bodies in specific countries record these figures and publish them in periodic reports.
Global
There is no formal data that identifies global advertising spending by online casino operators. Many countries don’t record this information, and some operators prefer to keep their advertising budgets private.
What is known is that the global iGaming industry—comprising online casinos, lottery providers, and bookmakers—generated $89.4 billion in 2023.
Although there are no full-year estimates for the total global marketing spending in 2023, estimates for the fourth quarter are widely available. The most commonly accepted estimate is that around $734.8 million was spent in the fourth quarter.
However, compared to countries that actively publish advertising spending and the amounts recorded therein, this figure seems like an underestimation.
Europe
Like at the global level, little information exists about the amount spent in many European countries and across the continent. The European Gaming and Betting Association data shows that the continent’s gross gambling yield (GGY) reached €26.2 billion (around $28.16 billion) in 2021.
A significant percentage of this is estimated to have been spent on advertising and marketing, some of which came through the sponsorship of football teams in various leagues.
Germany
Estimates released as part of the results of a study undertaken by Goldmedia show that operators in the German iGaming sector spent €232 million (around $249.37 million) in 2020. Online casinos and bookmakers, which were officially allowed to launch in the country in 2021, were the primary contributors to this.
UK
The UK Gambling Commission (UKGC) carefully regulates and monitors all gambling and operator activity in the UK. As a result, the UK is one of few countries with detailed reports on advertising spending in the iGaming industry.
In 2020, the governing body recorded £1.5 billion (approximately $1.91 billion) in marketing and advertising spending. Although various types of gambling operators contributed to this, online casinos contributed significantly to the total spend.
Australia
The Australian Communications and Media Authority (ACMA), the regulatory body that oversees all gambling activities in the country, tracks advertising revenue in the land down under.
Between 2020 and 2021, the ACMA recorded television and radio advertising spending of AU$287.2 million (approximately $191.67 million). This spending was done solely by sports betting operators and lottery providers, as online casinos are prohibited in the territory.
Canada
The Canadian Gaming Association is a non-profit organization that supports operators nationwide and records essential information about the industry, including the amount spent on operating expenses, like advertising.
In 2020, the CGA estimated that CA$375 million (approximately $273.55 million) was spent on ads. Many believe that this has increased significantly alongside online gambling due to the launch of iGaming Ontario and the growth of the sector in the region.
USA
Home to the world’s largest gambling industry, the USA has an ever-changing relationship with gambling. Each state is permitted to pass its own gambling laws, with many allowing in-person wagers but opting not to embrace online casinos.
Each state also has its own governing body or organization that regulates and manages gambling activity. Because of this, no comprehensive data is available at the state level, as some don’t record or publicly publish such data. However, the states that do track this information give a good idea of the vast sums spent within the country.
New Jersey was one of the first states to embrace the iGaming industry and begin allowing online gambling activities. Operators in the state, regulated by the New Jersey Division of Gaming Enforcement, spent $155 million on advertising in 2021. With the industry in the state having grown significantly since then, many estimate that the figure now is much higher.
Joining New Jersey in giving residents access to a casino that accepts echecks, sports betting, and other forms of gambling, Pennsylvania legalized online gambling in 2017. The Pennsylvania Gaming Control Board regulates all activities and reported that iGaming operators in the state spent $103 million on marketing and advertising in 2021.
While no other state publicizes advertising budget data, except for Nevada—in which casinos spent $839 million in 2021, mainly due to the industry in Las Vegas—a study has estimated that US bookmakers in the country spent $282 million on television advertising in nine months between 2021 and 2022.
Although bookmakers aren’t online casinos, many function as hybrid operators, offering sports betting and online casino games.
Collectively, using only publicly available data, the spending for US online casinos can be estimated at more than $258 million in 2021—excluding the figures that are not specified to be generated by online casinos.
Conclusion
Many of the figures listed above, except those provided by official governing bodies, are estimates. These vary depending on the source and cannot be verified, as online casino operators often view spending information as proprietary.
