Betting on the Future

How Sports Betting Brands Lobby for Legal Gambling on Meta

By Isaac A. Vargas

TRIGGER WARNING: THE FOLLOWING CONTENT CONTAINS DESCRIPTIONS OF SPORTS GAMBLING AND ADDICTION, WHICH MAY BE DISTRESSING FOR SOME INDIVIDUALS.

The Boston-based sports betting operator, DraftKings, ran six ads on Meta platforms promoting thousands in prizes if someone could predict the first presidential debate between Joe Biden and Donald Trump.

The digital ads targeted more than 42 states, cost around $20,000 and appeared on a screen at least one million times. Half of those impressions were men and women under the age of 34.

The ads were flagged and pulled down by Meta for violating policies on advertisements about social issues, elections or politics.

(All 6 DraftKings ads ran on September 29, 2020, the same day as the first presidential debate between Donald Trump and Joe Biden. Isaac Vargas/Annenberg Media)

Lawmakers in California remain divided over how to structure and regulate sports betting in a way that respects tribal sovereignty, ensures fair competition, and addresses public health concerns.

Federally-recognized tribes in the state can operate casinos and argue that expanding sports betting beyond their control threatens their economic independence. Meanwhile, commercial operators like DraftKings and BetMGM push for broader access to online and mobile betting, promising increased state tax revenue. However, critics worry that this expansion could exacerbate gambling addiction and disproportionately affect vulnerable communities.

An analysis of over 50 digital ads listed on Meta’s Ad Library traces how sports gambling brands leverage targeted paid advertising for their grassroots lobbying efforts. Ad-campaigns target states when legislators are actively mulling over sports betting legalization.

Missouri legalized sports betting in this year’s November election.

A nailbiter that was decided by less than 7300 votes. The state is joining a list of 38 others and D.C. to legalize retail and online sportsbooks.

DraftKings and FanDuel, two major sports gambling companies, spent tens of millions backing Amendment 2.

In 2019, the Kansas City Chiefs began the playoffs ranked 1 on ESPN’s NFL Football Power Index. Winning an MVP award the previous season, quarterback Patrick Mahomes helped lead the team to a 31-20 victory and its first championship in 50 years.

Throughout that playoff run, DraftKings ran five ads leading up to Super Bowl LIV on February 2.

These ads exclusively targeted the state of Missouri, one with a deeply rooted Kansas City Chiefs fanbase, and amassed up to 1.8 million impressions combined.

(DraftKings digital ads that ran on Meta from Jan. 7 to Feb. 2, 2020. All five ads strictly targeted the state of Missouri. Isaac Vargas/Annenberg Media)

Framed as the safer option for Missouri bettors, the ads linked to a website promoting legal sportsbooks at a time when the practice was not yet legal in the state.

Obviously operators are pouring a huge amount of money into advertising, spending, retaining those customers, attracting them, even in jurisdictions where it’s not legal,” said Cait Huble, Director of Communications for the National Council on Problem Gambling (NCPG), an advocacy and awareness organization based out of Washington D.C.

Under Missouri’s initiative, at least $5 million annually in fees and taxes must go toward problem gambling programs. NCPG was the only organization in Missouri advocating for funding to be built into the bill dedicated to providing services and access to treatment and recovery, according to Huble. The organization has 38-state affiliates that work with state and federal level legislators and regulators to address problem gambling needs.

There’s zero dollars of federal funding dedicated to gambling addiction, research, education, [and] treatment,” Huble said. “It’s entirely underfunded.

(Full-page screen grab of dkgrassroots.com, Dec. 10, 2024. Isaac Vargas/Annenberg Media)

Gambling companies have fervently pushed in favor of sports betting legislation across the country.

When PASPA was overturned by the Supreme Court in 2018, the power fell to the states to decide whether they’d open the sports gambling floodgates.

In June 2020, DraftKings invested $25,000 in a campaign urging Californians to support sports gambling legislation. The campaign, which targeted young voters through over 2 million impressions, coincided with discussions of a ballot measure that would have authorized sports betting in the state.

(DraftKings digital ads that ran on Meta from June 16 to June 22, 2020. Both ads heavily targeted people under the age of 34 in the state of California. Isaac Vargas/Annenberg Media)

Sen. Bill Dodd withdrew the ballot from consideration citing, “the impact of COVID-19 on the public’s ability to weigh in…”

In 2022, DraftKings, BetMGM, FanDuel and others advertised in favor of Proposition 27, a ballot measure to legalize online sports betting in California. Once polls predicted the measure would fail, a decision was made to cancel about $11 million in broadcast TV and cable ads scheduled to run through Election Day.

California voters most recently rejected Prop 26 and Prop 27 during the 2024 election. Despite promises to direct tax revenue toward homelessness and mental health programs, the initiative faced widespread opposition, including from Indigenous groups and gambling addiction advocates.

In 2019, Draftkings ran two ads targeting the state of Colorado urging people to, “Vote Yes on Prop DD,” a measure that authorized sports betting.

(One of two ads that DraftKings ran from Oct. 26 to Nov. 5,2019 in the state of Colorado. Isaac Vargas/Annenberg Media)

Three days after Gov. Janet Mills vetoed a sports gambling bill, Draftkings ran an ad in 2020 that cost at least $10,000, encouraging people in Maine to call their lawmakers to, “OVERRIDE THE VETO.”

(A DraftKings ad that ran from Jan. 13 to Jan. 30, 2020 in the state of Maine. Isaac Vargas/Annenberg Media)

In the state of Kentucky, while Gov. Andy Beshear called on lawmakers to pass sports betting legislation, DraftKings ran two consecutive ads encouraging a final push towards legalization in the state. The ads cost around $5,000 and garnered close to half a million impressions.

(One of two ads that DraftKings ran from Feb. 8 to Feb. 21 and then another from Mar. 4 to Mar. 8, 2020, both in the state of Kentucky. Isaac Vargas/Annenberg Media)

DraftKings launched a barrage of digital ads exclusively targeting young men in the states of Pennsylvania, New Jersey and Indiana on March 15, 2020. The 18-ad campaign cost at least $300 and appeared on someone’s news feed at least 84,000 times.

...maybe 60 men, and they’re all kind of like me,” said David Leong, a licensed gambling addiction specialist. He’s only seen two or three women in his caseload.

“They’re all 18 to 35,” with the exception of a few 65-year-olds, and some are there on behalf of an ultimatum from wives, partners and parents.

(DraftKings digital ad that ran on Meta on March 15, 2020. This ad was used to target young men in states like Pennsylvania, New Jersey and Indiana. Isaac Vargas/Annenberg Media)

Leong began gambling on sports as a high schooler in Woodland Hills. Over time, he became a compulsive sports gambler and would later declare bankruptcy, wiping out $90,000 in credit card debt.

I struggled with both a drug and gambling addiction...but my gambling addiction eventually caught up to me,” Leong said. “It brought me to my knees, and I feel like it even gave me a little psychosis.

The timing of the campaign was no coincidence–that same day former Vice President Joe Biden and Sen. Bernie Sanders elbow bumped one another in Washington, D.C. Two podiums, six feet apart and the 2020 presidential primary debate was without a live audience due to escalating concerns over the COVID-19 pandemic.

Days before the debate, the NBA suspended its season after Utah Jazz player Rudy Gobert tested positive for COVID-19; the NCAA announced the cancellation of their men’s and women’s basketball tournaments; the NHL paused its season and the MLB indefinitely delayed the start of its regular season.

With live sports paused and political moments drawing heightened public interest, DraftKings adapted its marketing strategies to capitalize on these shifts, using digital platforms to target young, oftentimes male audiences.

The sportsbook decided to emphasize new products in order to offset the impact of COVID-19, according to their first quarter report. Some of which were, “a series of pop culture free-to-play pools contests” that cover topics like, “Democratic debates.” These contests were strategically advertised on Meta.

“With this massive expansion, it also came at a very particular time of COVID,” said Huble. “States had shut down…they saw these big revenue holes and sports betting became this kind of white knight to build tax revenue.”

Sixty-seven games in a three week span is a gambler’s dream.

The college hoops spectacle, famously known as March Madness, is one of the more heavily wagered-on competitions in America.

So much so that the month of March is also Problem Gambling Awareness Month.

“We intentionally co-aligned our month with March Madness,” said Huble. Next year will be the organization's 27th year of the nationwide campaign.

During the 2023 NCAA Men’s tournament, BetMGM launched a 13-ad campaign targeting 15 states; nine represented at least one nationally ranked team, seven states each had two teams ranked in the top 12.

The campaign cost at least $25,000 and received around one million impressions. Notably, 82 percent of these impressions were men, reflecting a focused effort to engage a male audience.

(BetMGM digital ad-campaign that ran during the 2023 NCAA Men’s basketball tournament targeting men in state’s that represented nationally ranked teams. Isaac Vargas/Annenberg Media)

BetMGM declined to comment on the campaign, the targeted audience and why they ran the ads without a disclaimer, resulting in them being pulled from Meta.

I can see it in their eyes. They get that enjoyment, that thrill,” said Damian Aburto, a 22-year-old ex-military, recreational sports gambler.

Aburto and his friends, all men in their 20s, have a group chat to talk about money lines, parlays and bets for the week. He said it’s a social thing as much as it is about the gambling.

“I started because [my friends] were really into it and they told me if I could join because of promo codes,” Aburto said. “You get free money to bet and then your friend gets free money to bet if you use the promo code.”

The rapid growth of digital sports gambling presents significant societal challenges, particularly for young adults.

Addiction risks are heightened as companies use sophisticated targeting strategies to engage these groups.

DraftKings CEO Jason Robins discussed the role of betting companies in problem gambling with Fortune, stating that, “There is some onus on the individual in these situations, too.”

Researchers at the University of Bristol found that sports gambling brands are shifting from traditional paid advertisements to contemporary marketing strategies, such as shareable memes and engaging content.

“This is concerning given the significant youth engagement with social media,” researchers said in their September study, one of the first to focus on social media gambling advertising in the U.S.

They recommend considering a ban on gambling content marketing across social media and a “centralised repository” for online gambling ads to support transparency and help facilitate regular oversight.

Meta’s Ad Library was introduced to the U.S. in 2018 and then further expanded in 2019 to include all active ads, as well as inactive political and issue ads. Ads running without a disclaimer, like those analyzed in this report, are disapproved and added to the Ad Library, according to Meta’s policies.

Leong eventually enrolled in an outpatient recovery program and has since dedicated his career to helping others like him, co-founding Westside Gambling Treatment and Stop Betting Sports.

Leong’s experience underscores a broader truth: sports gambling companies aren’t just betting on games–they’re betting on people. Through meticulously targeted ad campaigns, brands like DraftKings and BetMGM aim to capture new markets and cement their influence, particularly during high-stakes moments like March Madness and the Super Bowl. Grassroots lobbying, efforts to influence legislation by changing public opinion or encouraging people to take action, is also strategically carried out by these targeted ad campaigns.

I feel like [ads] are targeting the more recreational, responsible gamblers,” Leong said. “Because they know us problems gamblers are coming back.

Click X to close