Sports Betting Apps Cut Ad Spending as California Legalization Looks Grim

DraftKings, FanDuel and BetMGM are cutting ad spending on broadcast ads in support of Prop 27, a ballot measure that would legalize online sports betting in California.

Thirty-six states plus Washington D.C. allow sports betting. California is the big state with 38 million people. New York legalized sports gambling in January. Prop 27 supporters raised $162 million in campaign efforts.

Sports betting apps are cutting ad spending as public is not enthusiastic about Prop 27 and Prop 26. The strongest pushback has come from Native tribes, who rake in around $9 billion a year controlling much of the state's gambling industry. Some of their ads have ditched promoting gambling altogether, instead championing Prop27 as a potential victory for mental health and homeless services. Massachusetts is considering an all-out ban on TV betting ads during broadcasts with less than 85% of viewership over the age of 21.

Backers of Prop 27 have already canceled $11 million worth of TV ads. The focus is shifting to mailers and digital efforts. Some of the remaining ads have ditched promoting gambling altogether.