Sportsbooks Slashing Post-Super Bowl Promo Spending

It's hardly surprise that sportsbook operators typically cut down on promotional spending after the Super Bowl because football is the largest wagered sport in the US, but this year's drops are especially sharp.

In a recent research, Eilers & Krejcik Gaming (EKG) presents data from six states in February that shows sportsbook operators cut their February client acquisition and retention expenditures by an average of 25% when compared to February 2025. The situation of those reduced expenses is both excellent and negative. On the down side, there are associations between handle and promotional spending.

"The reduced promo spend has had a knock-on effect on handle, down 5% year-over-year,” notes the research firm.

Connecticut, Kansas, Michigan, North Carolina, Pennsylvania, and Wyoming are the states that are highlighted in the EKG dataset. Connecticut saw the biggest decrease in promotional spending in February (45%), while Michigan saw the smallest loss (less than 10%).

Positive News Regarding Spending on Sportsbook Promotions

There are a number of benefits to gaming corporations cutting back on their promotional spending on sports betting, including the fact that this is happening in response to perceived competition concerns from prediction markets.

Sports event contracts are crucial to the expansion of yes/no exchanges, according to a number of data points. However, there is also strong evidence that bettors prefer sportsbooks over prediction markets in states where online sports betting is permitted, and that the latter aren't significantly gaining market share from the former. Put another way, it might be claimed that gambling corporations wouldn't be reducing promotional spending if prediction markets were gaining market share from sportsbooks.

Then there is the problem of profitability, which has been a major concern with promotional expenditures for a number of years. The days of investors tolerating operators' large expenditures in the name of top line growth are long gone. Profitability is what they want, and increased promotional expenditures obstruct that goal.

“Spend is down across the board, signaling confidence in underlying demand and a continued focus on profit over volume,” adds EKG.

Two Down, Two Up

Only two operators raised customer-related spending in February, according to the EKG data. These are Rush Street Interactive's BetRivers and Caesars Sportsbook, although according to EKG, the rise is probably due to those operators hitting low bases in February 2025.

However, Fanatics (62%) and Penn Entertainment's TheScore (55%) saw the largest declines in promotional spending in February 2026.

Although EKG did not provide an explanation for the decreases, it is plausible that Fanatics is using some of that money for its prediction markets service. In Penn's instance, the operator might be trying to improve its financial prospects, demonstrate to the investing community that it is approaching sports betting more sensibly, allocate some of that money to iGaming, or all three.