Sports, betting and media have an intricate relationship spanning back decades, with each dependent on the other as a revenue stream in some way or another.
In many markets – particularly Western European ones like the UK, Spain, Netherlands and Italy – this relationship is coming under increasing pressure amid public and political concerns about gambling’s visibility and social impact.
To hear some perspectives from the media side of things, SBC News spoke with Dr. Matthias Kirschenhofer, former CEO of German sports media firm Sport1 Medien AG, who will be speaking at the SBC Summit Tbilisi this week.
SBC News: What would you say are the biggest pressure points the relationship between sports and betting is facing right now?
Dr. Matthias Kirschenhofer: I don’t see many difficulties at the moment, but rather a lot of opportunities for both sides. Despite some points worthy of discussion, from my point of view regulation, for example in Germany, has achieved a lot with regard to the integrity of the sport.
Most professional soccer clubs now have partnerships with sports betting providers, which help them to refinance their operations. Sports betting providers also urgently need sports for their marketing activities. So each side depends on the other.
SBCN: How has this relationship evolved in the face of political and public pressure in the markets you have experience of?
MD: In my view, the relationships between sportsbooks and sport has developed very positively especially since the opening of the market in many Western European countries for sportsbooks and the introduction of clear rules.
The opportunity to advertise and to enter into partnerships with clubs exclusively for legal sportsbooks is a major incentive for these providers to apply for a licence and observe regulations governing player protection, youth protection, and the interests of sport.
For this reason, any restriction on advertising for these legal offers should be rejected on principle and very carefully considered.
SBCN: With Western European markets seeing more and more restrictions on betting marketing, what is the future of sports betting sponsorships there and in other European regions?
MD: It is correct that there is a tendency in some Western European markets to restrict advertising opportunities, including in connection with sporting events.
For the reasons I have mentioned before, advertising restrictions should be viewed very critically. However, this is not the case in Germany, where there are a lot of far-reaching opportunities for advertising sports betting offers.
SBCN: How can companies work with athletes on responsibility campaigns without these being seen cynically by some members of the public?
In Central Europe, sports betting is now accepted as a form of entertainment and has become mainstream.
A huge market has emerged. However, in many jurisdictions like Germany, for example, advertising for sports betting featuring active athletes and officials is prohibited. Campaigns promoting responsible gaming for legal offerings enjoy a high level of acceptance.
SBCN: From what you’ve seen, are there any sports initiatives betting companies in the CEE region have been pursuing that stand out as particularly innovative?
DM: First, every successful campaign must be tailored to the target group of the respective sports betting offer. For example there are significant differences between landbased and online offers and a performance campaign should always be carried out in addition to brand building.
For instance we have integrated an innovative short-format teleshopping program in sport TV-shows that focuses on call to action and betting odds communication. This format was very entertaining and commercially successful. In addition, creating your own content is becoming increasingly important.
SBCN: How can marketers effectively balance the broad appeal of sports sponsorships and brand ambassador deals with the need to promote responsible gaming?
MD: This is not a contradiction. Of course, the topic of responsible gaming cannot be conveyed in a campaign through jersey sponsorship, but it can be conveyed through accompanying TV commercials, for example.
There are good examples that make it clear that it is not cool to gamble away your house and home, but that betting €20 on your favorite club at the weekend is an absolutely acceptable form of entertainment. In addition, the regulatory framework for example in Germany ensures that monthly bets are generally limited to €1,000.
SBCN: What factors should companies consider to ensure any marketing drives, especially with well-known athletes, do not unintentionally appeal to younger audiences?
MD: In Central Europe, this is often already stipulated by advertising regulations. Mostly advertising may not be directed at minors or similarly vulnerable target groups and as I have already mentioned, advertising for sports betting featuring active athletes and officials is prohibited.
Phenomena and figures that are particularly popular with teenagers and young adults should therefore be avoided, and the tone of the advertising should be adapted accordingly.
SBCN: Do you think athletes will always be open to working with betting and gaming firms in some form regardless of regulatory changes?
MD: As already mentioned, in the countries I am familiar with, active athletes are not allowed to advertise for sportsbooks. In contrast, there are numerous cases in which former athletes and even former world champions and captains of the national team advertise sports betting offers.
This is also not a problem if the regulatory landscape is such that, on the one hand, player and youth protection and the integrity of the sport are preserved and sports betting is an accepted form of entertainment and, on the other hand, it is ensured that sports betting offers can also operate profitably.
SBCN: What knowledge around the future of sports partnerships do you think SBC Summit Tbilisi attendees will walk away with?
MD: I hope that participants will take away the message that promoting responsible gaming and economically successful marketing campaigns are not excluding each other. Furthermore, in all jurisdictions I know, advertising is only possible for legal offers, and advertising ensures that players are channeled towards legal gaming.
Due to higher taxes and other restrictions such as betting limits, the possibility of advertising is one of the few incentives for sportsbook operators to participate in the legal market. Against this backdrop, any form of advertising and sponsorship restrictions must be viewed very critically.
Co-hosted with SMH Global, SBC Summit Tbilisi will unite 2,000 operators, affiliates, suppliers, and regulators for two days of strategic insights, networking, and regional expertise, making it the go-to event for businesses targeting Eastern Europe and Central Asia.
Tickets:
- Full Event Pass ($200): Exhibition floor, all conference sessions, daily catering, and both evening networking parties.
Source: SBC News
