A new study by Paysafe has revealed that consumers, although tightening their purses otherwise, are looking to continue spending on online sports wagers and in-game purchases.

This means that gaming companies that have digital exposure may not feel the pinch of an immediate economic downturn as online spending and experiences would continue to remain a preferred option for consumers.

There is also sufficient data to rebut doomsayers who expect inflation to bite into casino resorts’ purses may be blowing the issue out of proportion.

Consumers Prioritize Experiences and Stay-at-Home Entertainment

Streaming services and stay-at-home entertainment are beginning to gather momentum, Paysafe notes, considering the previous years that were marked by the onset of the COVID-19 pandemic, and the subsequent recovery from it.

Although gambling operators have turned mostly a profit, and many states around the United States have posted record-breaking revenue across sports gambling and online gambling, the land-based sector is still flagging. This though has enabled consumers to sustain their online spending habits driving sports betting up, and not all brick-and-mortar venues are affected equally.

Not all is bleak in the land-based sector, and Paysafe estimates that businesses which offer strong experiences over physical goods would do well. This is to say gaming companies should in theory perform better even in the land-based sector, as they create multi-tiered experiences that are not directly tied only to their gaming floors.

Land-Based Venues More Resilient Than the Economy Suggests

Places such as Las Vegas and Atlantic City are built around a 360-degree experience, which means that these brick-and-mortar properties are well-equipped to satisfy demand even if in-person entertainment’s prospects seem to be dimming on paper, edged sideways by home entertainment.

Some 51% of consumers prefer experiences, the report said. In other words, gaming may be a hook, but casino companies pull in a lot of revenue from lodging, food, and beverage, and not least the customary performances by world-known artists. When it comes to sports gambling, though, it is evident that consumers are not going to budge and would instead stick to their spending habits despite increasing costs of living.

The survey’s findings are reflected in the estimates of several analysts who have remained bullish on the stocks of popular gaming and entertainment companies, including Las Vegas Sands, MGM Resorts International, Caesars Entertainment, and Penn Entertainment.

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Former New Hampshire senator Andy Sanborn, owner of the Concord Casino, is now under intense scrutiny after allegations of COVID-19 relief fraud and extravagant personal spending. The state’s Attorney General John Formella and the Lottery Commission jointly announced that Sanborn is considered “not suitable” to be involved in charitable gaming due to the alleged misconduct.

Sanborn Accused of Fraudulently Obtaining COVID-19 Loan and Lavish Spending

The investigation by the Attorney General’s Office uncovered that Sanborn purportedly fraudulently secured a COVID-19 Economic Injury Disaster Loan of $844,000 from the Small Business Association, reported NBC Boston. It is claimed that he diverted these funds for personal use, including the purchase of high-end vehicles. The funds were reportedly used to buy two Porsche 987 Cayman S race cars for himself and a Ferrari F430 for his wife, state Rep. Laurie Sanborn. The couple is also accused of disguising personal expenses as business-related transactions, with Sanborn funneling $183,500 into his accounts under the guise of rent payments.

Sanborn’s actions not only raise concerns about financial misconduct but also impact his involvement in the charitable gaming sector. The Lottery Commission is pursuing revocation of Sanborn’s gaming facility license and his game operator employer license. Sanborn has a limited window of 10 days to appeal the decision. The Attorney General’s Office is simultaneously conducting a criminal investigation into the matter, while also referring the case to the US Attorney’s Office for further criminal proceedings.

Sanborn Faces Legal Hurdles in Bid to Expand Casino Ventures

The allegations come at a pivotal moment for Sanborn, who sought to expand his gambling enterprise with a new casino project on Loudon Road. However, this endeavor now faces legal challenges, with critics asserting that public notice was insufficient before the city’s planning board’s vote.

Aside from the Concord Casino, Sanborn manages The Draft, a restaurant and bar conveniently situated adjacent to his casino in downtown Concord.

In another twist, Sanborn’s wife, Laurie Sanborn, who is a state representative, is heading a legislative commission focused on examining New Hampshire’s gambling laws and their impact on charities’ revenue share. The unfolding events have prompted calls for her removal from the commission due to potential conflicts of interest.

Hailing from Bedford, Sanborn served four consecutive terms in the state Senate before his unsuccessful congressional bid in 2018. Meanwhile, his wife, Laurie Sanborn, currently holds her seventh term in the House, where she assumes the roles of Speaker Pro Tempore and Chair of the Ways and Means Committee. The fallout from these allegations extends beyond the gaming industry, impacting both the Sanborns’ personal reputations and their political connections. As the investigation progresses, the citizens of New Hampshire await further developments and the potential ramifications for the state’s gambling landscape.

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In the past 18 months, Sportsbet, the largest online bookmaker in Australia, has outspent its rivals by more than three to one on television advertising during live sports and racing events. Confidential spending data obtained by the Australian Financial Review has revealed that Sportsbet invested a staggering AUD64 million ($42.7 million) in TV ads, significantly surpassing the amounts spent by Tabcorp and Ladbrokes.

Major Broadcasters Fear Revenue Loss as Australian Government Considers Gambling Ad Ban

A recent parliamentary inquiry in Australia recommended a phased prohibition on gambling ads across TV, radio, and social media platforms. This proposal has raised concerns among major broadcasters, who fear the loss of tens of millions of dollars that currently flow from bookmakers into their coffers, as well as sporting organizations.

According to the data compiled by Nielsen, Tabcorp has spent a mere AUD5 million ($3.3 million) since the initiation of the government’s online gambling inquiry in mid-October. Other prominent competitors have also scaled back their spending on networks such as the Nine Network, Seven Network, and Network Ten, as the inquiry continued into the new year.

The potential ban poses a threat to wagering companies like Sportsbet, as well as the Entain-owned brands Ladbrokes and Neds, which collectively spent AUD37.6 million ($25 million) on TV advertising between January last year and May 2023. Apart from social media platforms, television remains the primary channel for advertising and brand promotion. Consequently, a ban would not only impact market share for the industry’s biggest spenders but also reduce advertising revenue for television networks.

Nielsen Data Reveals Sportsbet’s Multi-Million Dollar Ad Spending

The data from Nielsen illustrates the close connection between sports betting and key racing and sporting events. Sportsbet’s ads predominantly run during the AFL and NRL seasons as the company holds the official partnership rights for both codes. The six-month period from March to September witnessed over AUD32 million ($21.3 million) in ad spending alone.

While Tabcorp drastically decreased its spending with broadcasters, Sportsbet spent AUD16.8 million ($11.2 million) during the spring racing carnival from September to November 2022, surpassing Tabcorp’s total expenditure over an 18-month period. The inquiry period saw all wagering companies reduce their spending significantly compared to the months prior.

Adam Rytenskild, Tabcorp’s CEO, made comments during the inquiry that aligned with the company’s subsequent reduction in ad spending. He stated that Tabcorp would voluntarily cease all free-to-air television advertising during the day by 2024.

Sportsbet’s CEO, Barni Evans, expressed support for several recommendations made by the inquiry but regarded a complete advertising prohibition as a step too far. Evans believes that a significant reduction in the number of ads, rather than a total ban, would address community concerns while still supporting sports and the media. Meanwhile, Sportsbet has been exploring other marketing channels. Recently the company has utilized TikTok to engage with young women and diversify its customer base.

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