38 PUBLIC GAMING INTERNATIONAL • JANUARY/FEBRUARY 2025 For the first time, significantly more Americans are aware of Sports Betting advertising than Lottery advertising. “If you ain’t first, you’re last”. Sounds simple and logical, right? However, until last year, Lottery still held a significant lead over Sports Betting when it came to advertising awareness than their current major competitor. 2024 has changed all of that, with the numbers for 1st and 2nd place basically flipped. In 2023 Lottery earned 52% ad awareness, which was up significantly from 2021’s 44%. This past year it dipped to 47%. Meanwhile Sports Betting’s meteoric rise in terms of being top of mind has gone from 32% (’21) to 47% (’23) and is now at a category high 52%. “Hey, it’s me America” This begs three key questions: Where did the shifts in ad awareness occur, what effect, if any, has it had on purchasing and what can the Lottery industry do about this in 2025? The Northeast has seen a strong and significant swing for Sports Betting advertising, up from 50% to 58% year over year, while the South has seen close to a double-digit increase (Florida started online Sports Betting via Hardrock in December 2023, a landmark moment for a state with a 20m+ population). Meanwhile Lottery ad awareness has sank almost 10 points in the Midwest, down from 54% awareness in 2023, down to 45% in 2024. “Santa! Oh, my God! Santa’s coming! I know him!” (Trade ‘Santa’ for ‘Sports Betting’) Demographically, both genders have dropped 5% in terms of Lottery Ad Awareness on a national scale, down to 51% and 44% among men and women respectively. However, it is the strengthening of Sports Betting Ad Awareness among females that has produced a 5% annual uplift to 42% (compared to 3% for males). The gap between Lottery and Sports Betting Ad Awareness is now a meagre 2% points, whereas the gap in 2023 was 11% in Lottery’s favor. Two age groups in particular have driven the higher Ad Awareness for Sports Betting: 18-24 year olds have gone from 44% to 53% over the past twelve months, whilst the all-important 45-54 year olds have seen a 6% jump, both significant strong and significant increases. Sports Betting Ad Awareness has also benefited from a strong and significant increase among the U.S. AfricanAmerican population, up from 48% in 2023, to a category leading 62% in 2024. “You stink. You smell like beef and cheese!” When asked how their spending has changed on the major gaming and gambling categories, the two Lottery categories appear to echo the slight decline in underlying U.S. Lottery sales data. Roughly a fifth of Lottery Draw Game and Scratch players claim a net increase in spend, while a higher proportion, approximately a quarter, claim a net decrease in either or both the categories. Casino play has also seen a slight negative trend, with net increases in Casino play among 22% of players, and a net decline among 26% of Casino players. “Fill it up again! Once it hits your lips, it’s so good!” The biggest net increase in self-reported spend comes within the Sports Betting marketplace, with almost 2 out of 5 past year bettors claiming they have increased their spend, driven by over-indexes among 18-34 year olds, African-Americans and Hispanic Americans. Only 1 in 7 Sports Bettors claim they have reduced their spend in 2024 (driven by those 55+). The net positive gain is around 25% for Sports Betting from the consumer research, which mirrors the Sports Betting Operator revenue increase of 30% ($14.3bn ‘24 v $10.9bn ‘23). “You’re my boy, Blue! (states)” The Northeast has seen the greatest surge in player reported net spend increases in Sports Betting, with a 4:1 ratio claiming they have increased their Sports Betting outlays, compared to those Americans who claim to have decreased their spend in the likes of New York, New Jersey, Massachusetts and Connecticut, “If Bruce Dickinson wants more cowbell, we should probably give him more cowbell.” The question now is not related to getting the top slot back in consumers’ minds, as that ship has sailed, primarily due to the fact that FanDuel and DraftKings spend roughly $2bn (that’s billion) on Marketing in any given year (this was their 2023 spending). The Lottery industry should focus more on adopting the critical Marketing tactics that Sports Betting institutions use every day. 1. Be ever present with messaging that highlights consumers benefits. Every day I personally receive emails and texts with offers, free bets and bonuses that make me feel appreciated from Sports Betting brands. How can the Lottery adapt this strategy with their wealth of products and strong brands at their disposal? How can Lotteries personalize offers? Can second chance opportunities become more frequent? Can player’s clubs genuinely offer more ways to help their players feel valued? 2. Differentiate information on the size and where proceeds go. The Lottery ($28bn) provides 15 times more benefits to Americans than sports betting. How can the lottery industry take further advantage of this amazing fact? Is there a way to utilize two of America’s biggest and most popular brands (Powerball and Mega Millions) to help underscore this critical message? 3. Own the Responsible Gaming space. All the focus on good causes, goes hand in hand with having good, responsible players. Can the Lottery Games-of-Chance Battle of the Brands Intensifies Simon Jaworski, Founder & CEO, Lotto Research
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