After recently partnering with BetMGM, X has rolled out a new feature that displays sports betting odds in-stream, just in time for the highly anticipated Super Bowl. This first-of-its-kind collaboration between a prominent social media brand and a sports betting operator aims to integrate BetMGM’s odds and branding into X, capturing the attention of sports enthusiasts. However, this move also comes with potential risks and challenges that X needs to navigate carefully.
The integration of X’s new sports betting odds graphics offers a convenient platform for users to access BetMGM’s website and place bets on various sports events. It’s a strategic move for BetMGM, leveraging X’s extensive engagement around sports and targeting sports gamblers who already rely on the app for real-time updates. Previous research has shown that Twitter (now X) users heavily depend on the platform for predictions, injury reports, statistics, and other sports-related news. In fact, 72% of sports gamblers use tweets to follow the live status of their wagers. Thus, aligning with X enables BetMGM to tap into this active user base and expand its reach.
While X stands to benefit financially from this partnership, it also exposes itself to potential risks associated with problem gambling. Numerous studies have already highlighted the detrimental effects of sports gambling promotions on social media, with X regularly being mentioned in these discussions. Regulatory bodies in the United States and other countries have been actively considering implementing new rules to restrict sports betting promotions. Consequently, this agreement places X under increased scrutiny and may fuel demands to ban such promotions altogether. This could be especially concerning since the new odds displays will be visible to all users, including younger audiences who may be more vulnerable to the allure of gambling.
Furthermore, the aforementioned research reveals that one-third of all gamblers would place fewer bets if it weren’t for Twitter. This finding brings more attention to X’s influence in the realm of sports gambling. While the platform may benefit financially, it also faces the responsibility of ensuring the well-being of its users and actively countering any negative consequences of gambling addiction. Successfully striking this balance is crucial for preserving X’s reputation and maintaining the trust of its vast user base.
Despite these potential risks, X finds itself in a position where it needs to boost its ad revenue, which is reportedly still down approximately 50% from pre-Elon levels. The partnership with BetMGM presents an opportunity for X to generate revenue directly from the sports betting industry. By advertising BetMGM and potentially attracting other sports betting outlets, X can diversify its revenue streams and recover from the decline in ad revenue. However, it must carefully manage this integration to avoid alienating users who may have concerns about the prevalence of gambling-related content on their favorite social media platform.
In the pursuit of becoming an “everything app,” X has taken a bold step by integrating sports betting odds into its platform through a partnership with BetMGM. While this move presents potential financial rewards, it also carries substantial risks. X needs to handle the integration carefully to protect its image, address regulatory concerns, and fulfill its responsibility towards active gamblers. As regulators continue to scrutinize the sports betting industry, the reception and long-term implications of this collaboration will undoubtedly shape the future of sports gambling promotion on social media platforms like X.
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