The sportsbook promotional environment continues to shift and evolve as the US sports betting industry matures. Covers Senior Editor Ryan Butler breaks down the promo environment for sportsbooks and what bettors can expect in the future.
TheGamblest: What is the current state of sportsbook promotions?
Ryan: Sportsbook promos have shifted tremendously in the past few years, with all major books moving in the same direction – one that’s not necessarily good for bettors.
The US Supreme Court struck down the federal sports wagering ban in 2018. More than 50 regulated books launched in the following few years, sparking a massive promotional battle as these dozens of books tried to attract new customers.
Most of those books would shutter US operations by 2024. Before that, bettors had ample opportunities to grab generous sportsbook promos. Some books even offered “no sweat” or “risk free” bets of up to $3,000.
As competition dwindled, and fewer new players became available, those promotions dried up. Bettors can still access promotions at each of the roughly dozen national remaining sportsbooks, but those deals are far less generous than they were five years ago.
TheGamblest: Why have sportsbooks cut back on the promotional spend?
Ryan: Along with the diminished customer base, the major sportsbook operators felt increasing financial pressure to turn years of losses into positive gains. Large, publicly traded sports betting companies reported hundreds of millions of dollars in annual losses, driven mostly by advertising campaigns and sportsbook promotions. Investors demanded positive gains, and cutting these promos was the quickest way to bolster the bottom line.
The sports betting industry also better realized that players were more interested in the capabilities of a sportsbook than they were in its marketing or even promotions. Most bettors would take the free bets and switch back to whatever book they considered a better platform. The sportsbooks that innovated quickest and offered the most live and pre-game bets attracted the most customers, even ahead of those with the biggest sportsbook promos.
TheGamblest: Are there still sportsbook promo bonuses available?
Ryan: Yes, there are. Though they likely will never be as massive as when sports betting began nearly a decade ago, bettors can still access plenty of sportsbook promo opportunities at all major national and state-specific operators.
TheGamblest: How have prediction markets changed the bonus environment?
Ryan: Prediction markets have upended seemingly everything about online gaming and the state-by-state sports betting promotional environment is no different.
Several major books have launched their own prediction markets, offering these platforms in states where they don’t have licensed sportsbooks. These companies have launched promotions around their prediction markets, though they are far less generous than their current sportsbook offerings, let alone their offers from earlier this decade. The nationwide approach allows these companies to consolidate and maximize promotional spend, saving money, as they can now promote unified platforms in both legal and non-legal sports betting states.
Because prediction market trades, which charge a fee per transaction, are less lucrative than sportsbooks, expect prediction market trade promos to be less generous than for sportsbooks. But the new frontier creates a fresh opportunity for bettors (or traders) looking to find promotions.
TheGamblest: What advice would you give bettors looking for sportsbook promos?
Ryan: While you should only bet within your means, take advantage of the existing promotions as soon as possible because they likely will continue to grow less favorable for bettors. Though prediction markets create a whole new bonus frontier, these platforms will likely continue to draw most of the major companies’ promotional attention – potentially at the expense of sportsbook promos.
If you like a sportsbook’s promotion, take advantage of it now.
