Last Updated on: 22nd November 2023, 06:01 am
The growth of online betting has been phenomenal in the past decade. Sports have always been a major source of entertainment all over the world. The advent of online betting has only accelerated its popularity. As time passes, more jurisdictions are legalizing sports betting as a recreational activity.
As a direct result of the online betting business growth, there are more markets now than ever! Big-name brands engage in corporate sponsorship deals with tournaments and individual sports teams to stand out from the competition.
We have invited betting expert Jimmy Daytona to BusinessMole to discuss the matter in detail. He promised to take us through corporate sponsorships, what it means for bettors, and, most importantly, what it means for betting businesses.
BusinessMole x Jimmy Daytona: The Power of Corporate Sponsorships
For a very long time, corporate sponsorships have been a major driver for the sports industry. Every sport you can think of is sponsored by at least one company. Regarding major events in the Premier League, each team can secure multiple sponsorships.
The power of corporate sponsorships goes both ways. The sports teams get more opportunities to play, can experience better kits, or visit different countries worldwide.
For corporate companies, it all comes to brand exposure. No matter what product or service a business sells, the right audience must know about it. As sports are one of the most universal things, it makes complete sense to gain exposure that way.
The Synergy Between Sports Betting and Corporate Sponsorship
In recent years, we’ve seen many betting companies sponsor sports events. For example, Bwin recently became a sponsor for the UEFA Europa League, a massive football (soccer) tournament for European countries.
In the past, UEFA has been sponsored by Heineken, Swissquote, Enterprise Rent-A-Car, and whatnot. Sure, all of these companies got the exposure they wanted. People who watch sports also drink, have bank accounts, and rent cars. But the context is not always right.
That’s where betting companies like Bwin come into play. A sports betting company is sponsoring a sports event. The viewers can then place bets on the same sports betting site. Do you see the connection? It is the synergy that makes sports betting corporate sponsorships a win-win situation.
Benefits for Betting Businesses
If you’re giving a lot of money for something, you better get even more money back from it. That’s the fundamental concept of investments. And corporate sponsorships are nothing but investments for the betting business.
What benefits do they get, you ask? Well, sports betting has become legal pretty much all over the world. Every year, we see new jurisdictions legalizing it. Even the US decriminalized online sports betting in 2018 as part of the Murphy v. NCAA case.
The friendly approach from governments worldwide is helping to eliminate the social taboo surrounding “gambling.” If the governments are legalizing it, it must not be that bad, right?
It is a classic example of herd mentality, driving massive traffic to sports betting sites. As a result, the global sports betting industry is projected at $155 billion by 2024!
In a time when more people than ever before are interested in betting on their favorite sport, don’t you think sponsoring sports teams or tournaments is beneficial? When you see the Bwin logo on a world-class tournament like UEFA, you’ll consider Bwin before any other betting site.
At the same time, it builds credibility for the businesses. If a reputed organization like UEFA has partnered with Bwin, it must be a legit betting site. And if Bwin manages to satisfy the needs of the new bettors, they’re unlikely to use any other betting site.
Overall, corporate sponsorship in sports can put a company on the map forever. And it’s the biggest benefit for any betting business that can afford the sponsorship.
What Challenges Do Businesses Face
Well, it’s not a bed of roses for betting businesses regarding corporate sponsorships. The competition is severe, meaning small and medium businesses can barely land any events. And if they can’t market their business in the first place, they can’t scale.
Then there are controversies. Modern society might be embracing gambling, but it’s an uphill battle. Many people still believe that corporate sponsorships by betting companies are a bad idea and should be banned.
Last but not least, there is the risk of irresponsible gambling. The problem with “online” gambling is that no one regulates your activities. If you go bankrupt from betting, it doesn’t paint a good picture for the industry.
That’s why sports betting companies always try to balance promotion and education regarding sponsorships. We’ve seen many awareness campaigns that target problem gamblers.
In Jimmy’s experience, it’ll all settle down once the bettors and the betting companies start seeing through the same lens. It’s only possible when betting businesses protect consumers and maintain the integrity of their business.
Almost all online betting sites have a responsible gambling page with educational content. At the same time, they share contacts with external organizations that help problem gamblers. Some of the most respected organizations include:
- Gamblingtherapy.org
- Gamblers Anonymous
- Gamcare
- GamStop
Conclusion
Undoubtedly, corporate sponsorships from betting companies in sports events feel right. It could begin a new era of the online gambling industry and the sports events they sponsor. The beautiful thing about sponsorships is that the benefits go both ways.
Like betting businesses are getting more exposure to sports lovers, various sports events are getting exposure to the international crowd. What matters the most is that both parties should promote responsible behavior across the board, betting or viewing.
