Advertising has long been a powerful force in shaping consumer behavior, leveraging psychological triggers to influence purchasing decisions. Both the unregulated tobacco industry of the 20th century and today’s sports betting industry have drawn significant ethical scrutiny for their manipulative advertising tactics. While tobacco is inherently harmful with no safe level of consumption, gambling occupies a more ambiguous space—it acts as a form of entertainment but also carries risks of addiction and financial ruin. Despite these fundamental differences, both industries share strikingly similar marketing strategies that exploit consumer psychology, normalize consumption, and downplay associated risks. Their integration into mainstream media has fostered a culture of habitual engagement, demonstrating the dangers of unchecked advertising. As regulations tighten, they will not only alter the marketing strategies of gambling companies but will also significantly change consumer habits, athlete sponsorships, and even the way sports organizations generate revenue (Strachan, 2023).
Exploiting Consumer Psychology Through Identity and Social Bonding
A core tactic in both tobacco and sports betting advertisements is their ability to exploit consumer psychology by tying their products to identity and social bonds. Tobacco campaigns, most notably the Marlboro Man, reinforced an image of rugged masculinity and independence, positioning smoking as a symbol of strength and self-reliance (Centers for Disease Control and Prevention [CDC], 2023). This iconic marketing strategy made Marlboro one of the best-selling cigarette brands in the world, particularly appealing to young men who aspired to the portrayed image. A similar campaign was launched for women as well by Virginia Slims, who marketed cigarettes to women as symbols of empowerment and sophistication.
Similarly, sports betting advertisements leverage camaraderie and group experiences, portraying gambling as an essential part of watching sports with friends. Slogans such as “come to where the flavor is” in cigarette advertising mirror the psychological manipulation in modern gambling advertisements, which depict betting as an enhancement to social experiences rather than a solitary activity. FanDuel’s major mission being marketed to “make sports more exciting” clearly supports the argument above.
According to Dr. Christine Purdon, a University of Waterloo professor specializing in mood and anxiety-related behaviors, Fear of Missing Out (FOMO) plays a crucial role in gambling behaviors, particularly among young males, who are most susceptible to impulsive betting. Studies indicate that individuals with high FOMO levels actively seek social involvement to avoid exclusion, making them more likely to engage in impulsive gambling activities (Li et al., 2021). [2] Yahoo reported that one in five college students use financial aid for gambling, highlighting the vulnerability of younger demographics (Yahoo News, 2023). Sports betting advertisements amplify this psychological trigger by consistently presenting betting as an integral part of watching sports, where missing a wager equates to missing an important social experience.
Both industries also leverage visual cues and gamification techniques to increase consumer engagement. Tobacco packaging historically used high-contrast colors and sophisticated designs to create an emotional connection with consumers. Similarly, sports betting platforms use vibrant visuals, flashing odds, instant cash-out options, and promotional free bets to keep users engaged. Experts that our team interviewed further supported our claim, stating that nearly 60% of the marketing budget for sports betting advertisements is allocated to provide discounts and credits to entice users to place a bet. From there onwards, the overall design and structure of the platform helps create a recurring customer base.
Dr. Purdon also mentions that one particularly manipulative tactic in sports betting advertisements is the strategic presentation of losses. When a user loses a bet, their losses are often displayed in plain white, reducing their psychological impact. In contrast, winnings, no matter how big or small, are highlighted in bold, bright colors to encourage continued betting. Such techniques demonstrate how both industries craft advertising landscapes designed to foster dependency and long-term consumer entrapment.
Embedding Products in Cultural and Social Frameworks
Historically, tobacco advertising leveraged themes of masculinity, sophistication, and freedom, making smoking appear aspirational as outlined above. In the 1980s, tobacco companies expanded their reach through sponsorships in high-adrenaline environments, such as Formula 1 racing, subtly embedding cigarette branding into sports culture. This tactic solidified the presence of smoking in mainstream entertainment, reinforcing its perceived normalcy.
Similarly, sports betting advertisements capitalize on thrill-seeking behavior and social bonding, portraying gambling as an essential part of sports fandom. Featuring athletes and celebrities like Wayne Gretzky and Connor McDavid, these advertisements reinforce the idea that betting enhances the overall experience of watching sports (Otis, 2023). Just as tobacco advertising once suggested that smoking was an expression of identity and status, gambling advertisements frame betting as an indispensable component of the sports experience. Dr. Purdon recalled how, during her youth, smoking was at times depicted as a socially intimate act - often shown in films and other films of media where men and women lit each other's cigarettes, symbolizing connection and camaraderie formed solely through the act of smoking.
A key strategy shared by both industries is the saturation of advertising in entertainment and live events. Before stringent regulation in the early 2000s, tobacco companies heavily promoted their products on television, in magazines, and through event sponsorships. In a similar fashion, sports betting advertisements now dominate sports broadcasts, digital platforms, and even team sponsorships. Studies show that gambling-related messages can appear as frequently as 2.8 times per minute during televised games, mirroring how tobacco companies once ensured constant exposure before regulatory intervention (CBC News, 2023). As a result, sports leagues that currently benefit from gambling sponsorships may need to seek alternative revenue sources, potentially leading to increased ticket prices or paywalled content.
The Inevitable Regulatory Backlash
If the trajectory of tobacco regulation is any guide, sports betting advertising will not remain unchecked. The historical trajectory of tobacco advertising provides a compelling case study for understanding the aggressive marketing tactics employed by the sports betting industry today. Marlboro became a dominant tobacco brand by targeting young consumers through strategic advertising, particularly in motorsports sponsorships. However, increasing awareness of smoking-related health risks eventually led to stringent regulations, such as the 2006 ban on tobacco sponsorships in Formula 1 racing.
A similar pattern is emerging in the sports betting industry, particularly in North America and Australia, where gambling advertisements have become deeply intertwined with professional sports. Companies like FanDuel, DraftKings, and Bet365 dedicate nearly 20% of sports event airtime to gambling-related advertisements, ensuring constant exposure and reinforcing gambling as an integral part of sports culture (CBC News, 2023). However, this is unlikely to last in the long-term.
Governments have already begun taking action. Countries like Australia and the UK have introduced strict regulations on gambling advertising, including bans on celebrity endorsements and limits on how frequently betting ads can appear during broadcasts. Canada and the U.S. will likely follow suit as concerns over gambling addiction and financial ruin escalate. These regulatory changes will reshape the industry, forcing gambling companies to rely less on aggressive advertising and more on customer retention strategies, such as loyalty programs and improved user experiences.
This will impact both major sports leagues and consumers quite significantly. For instance, the NBA had an annual revenue for the 2023-2024 season of $11.34B according to Statista; but as we look closer into the drivers of the revenue, nearly $1.5B came from sponsorship deals. Of this $1.5B, nearly half was from gambling related sponsorship deals. And this is not just limited to the NBA, a similar pattern can be seen across all four major sports leagues in the U.S, including the NFL, NHL, NBA and MLB. Looking ahead into a potentially more stringent regulatory environment, this could significantly impact these leagues who are already dealing with changing viewing habits, rising costs, and competition from other entertainment options.
Conclusion: Sports Betting's Regulatory Reckoning
The sports betting industry stands at a crossroads, facing the same scrutiny that once reshaped tobacco advertising. While its current dominance in mainstream sports culture mirrors the unchecked marketing of cigarettes in the past, history suggests that such aggressive strategies are unsustainable. As public awareness grows and governments introduce stricter regulations, the landscape of sports betting advertising will inevitably change.
For consumers, this will likely mean fewer gambling promotions, stricter advertising guidelines, and greater protections against addiction. Meanwhile, sports leagues and broadcasters that are heavily reliant on gambling sponsorships will need to adapt by seeking alternative revenue sources. Whether this leads to higher ticket prices, paywalled content, or new corporate partnerships remains to be seen.
Ultimately, the trajectory of sports betting advertising is clear: just as tobacco marketing was forced to evolve under regulatory pressure, the gambling industry will also face a reckoning. The question is not if, but when—and how deeply these changes will reshape the intersection of sports, media, and consumer behavior.
