Want to know the biggest bet in online gambling? It’s the multibillion dollar marketing gamble sports betting firms like DraftKings and FanDuel are taking as they try to sign up as many customers as possible, as fast as possible.
The steady legalization of online sports betting in states across America has sparked a rush by firms, also including casinos such as Caesars and MGM, to grab as much market share as they can while the market is still new. The money they’re spending is proving to be a windfall for sports media businesses such as WarnerMedia’s Turner Sports. But it’s straining the finances of the betting services and raising questions about how long this ad spending boom can last.