Fitzdares CEO William Woodhams believes operators are stuck in a rut of "acquisition, acquisition, acquisition," with their lack of creativity keeping UK advertising agencies in business.
Fitzdares is a private bookmaker which focuses on high-spending bettors, meaning the operator does not target the mass market with its marketing.
But, in casting an eye on the rest of the gambling sector, Woodhams has concluded there is "no investment" in customer retention and too many resources are dedicated to the outdated medium of television advertising.
The CEO said at an industry conference: "The only people winning here are advertising agencies. Advertising agencies in the UK should be dead; they’ve not pivoted fast enough to consumer needs.
"All they want to do is make expensive television adverts. The only people that can afford to make expensive television adverts are the betting industry, so the hipsters in Soho still all have jobs.
"Bookmakers are taking up a huge portion of television advertising and it is a dying medium. It’s a much less effective medium because everyone’s online.
"We’re stuck in a rut of acquisition, acquisition, acquisition. If you look at this acquisition funnel and only the people coming in through the door, they are leaving in equal numbers out the other end."
Woodhams also urged a rethink of traditional marketing strategies, attributing diminishing customer loyalty to the industry’s static approach.
He explained: "Why do we keep giving these people money? We’re showing no creativity. Are we really supporting sport by sponsoring a placard or shirt? I’m not sure.
"I think we should rethink that. There’s now no loyalty as there’s no investment in retention or reactivation."