By Kelly J. Brummett
(Editor’s note: The following article appeared in Legal Issues in Sports Betting, a periodical of Hackney Publication, which is available on a complimentary basis.)
$370 billion. That is how much has been wagered on sports in the five years since the United States Supreme Court overturned a federal law that prohibited 49 states and the District of Columbia from legalizing sports betting (Ramsey, 2024). LendingTree estimates the 38 states and District of Columbia that now have legalized sports betting have, collectively, earned $2.5 billion in taxes from the total sports betting handle. With sports betting generating such large tax revenues, not all states are ready to confront sports betting as a public health issue and potential public health crisis.
Each state that has legalized sports betting structures its own regulations, resulting in a patchwork of state legislation. For example, most states require bettors to be at least 21 years old, though a handful of states set the minimum age at 18, and some states also allow online casino gambling with online sports betting (Pempus, 2024). Coupled with minimal consumer protection laws and limited advertising restrictions (Meyersohn, 2023), has contributed to the risk of gambling addiction, which the National Council on Problem Gambling research estimates increased 30% between 2018 and 2021.
The Diagnostic and Statistical Manual of the American Psychiatric Association defines gambling disorder as a “persistent, recurrent problematic gambling behavior leading to clinically significant impairment or distress” (Gleeson, 2024, para. 7). It is estimated that up to 7 million people in the United States suffer from gambling addiction, though that figure is likely conservative as the full scope of gambling in the United States has not been studied (Thomsen, 2024). Where comprehensive research has been conducted in other countries, such as the United Kingdom, Finland, and Australia, as much as 15% of the population suffers gambling-related harm on an annual basis (Thomsen). If that figure holds true in the United States, that would equate to 70 million individuals who are impacted in some form by gambling. In addition, research suggests that young people, especially boys and men, are susceptible to developing gambling addiction. Sohn (2023) reveals that up to 5% of adolescents and young adults who gamble will develop a disorder.
To combat these statistics, the Attorney General of Massachusetts announced in March 2024, a public-private partnership to raise awareness of the public harms associated with sports betting among youth ages 12-20. Recognizing the influence that sports teams have on young fans, the Youth Sports Betting Safety Coalition private partners include the Boston Red Sox, the Boston Celtics, the Boston Bruins, the New England Patriots, the New England Revolution, and the National Collegiate Athletic Association (NCAA). The Coalition seeks to target middle school, high school, and college-aged young people with evidence-based education, training, and health curriculum to educate on the risks of gambling. Educational materials and programs are critically important to negate sports betting advertisements that are prominent in sports venues, broadcasts, and products (LeBlanc, 2024).
Public health officials in Massachusetts have reason to be concerned. A January 2024 survey by the Siena College Research Institute (SCRI) and St. Bonaventure University’s Jandoli School of Communication found that 39% of Americans bet on sports, the majority of whom (33%) are males between the ages of 18-34. Snaychuk et al. (2023) similarly found that the average sports bettor is young, male, employed, and has higher levels of education, a contrast with the profile of problem gamblers, which research suggests is an older individual who is unemployed with lower levels of education. Sports bettors are also more likely to engage in substance use while gambling and have a greater likelihood of a substance use disorder (Snaychuk et al.). In addition, nearly three-fourths of sports betting occurs online or via mobile app (Statista, 2023), making sports betting easily accessible for anyone with a mobile phone. As the Massachusetts Attorney General commented, “[w]e’re putting an addictive product — gambling — on a very addictive device, your smartphone…” (LeBlanc, 2024, para. 9).
Massachusetts’ public-private partnership is just one avenue to minimize the harms of sports betting. Several states, including Arizona, Colorado, New York, and Oregon, have outlawed proposition bets, also known as prop bets. A prop bet is a wager on a part of the game or a player’s statistics during a game that are separate from a wager on the final score, such as whether a player will hit a homerun or pass for a certain number of yards or touchdowns. The goal of banning prop bets is to protect the integrity of the competition and to keep players safe from harassment. Charlie Baker, president of the NCAA, has been outspoken about the need to make prop bets illegal, saying that one in three student-athletes have been harassed by bettors (LeBlanc, 2024). Baker and his organization actively lobby Congress for a federal ban on prop bets on collegiate sports. Some argue, however, that banning prop bets does not actually solve the problems it seeks to address. Rather bettors will simply move their wagers to illegal offshore markets, where the (lack of) integrity of the competition and (potential for) harassment of players still exist.
While youth gambling and harassment of athletes are concerns, a lesser discussed risk of sports betting is the disproportionate financial impact borne by those who are least able to afford it. According to Vanden Heuvel (2024), Americans have lost at least $245 billion on sports betting since it was legalized in 2018. Individuals who are unemployed, the elderly, and the poor have the highest rates of gambling addiction, making them the most vulnerable to gambling losses; however, to date, there is no federal funding earmarked for gambling addiction treatment or research. The Gambling addiction, Recovery, Investment, and Treatment (GRIT) Act, introduced by Senator Richard Blumenthal of Connecticut and Representative Andrea Salinas of Oregon seeks to change that. The GRIT Act would create the first-ever federal funding stream to help prevent, treat, and study gambling addiction in the United States by allocating 50% of the current federal sports excise tax revenue for gambling addiction treatment and research. The bill would also allocate 75% of those funds to the states for prevention and treatment through grants.
New York Representative Paul Tonko also drafted a bill aimed at combatting the public harms associated with sports betting. The Supporting Affordability and Fairness with Every Bet Act (SAFE Bet Act) requires sports betting operators to comply with minimum federal standards in advertising, affordability, and artificial intelligence. Specifically, the bill prohibits sportsbook advertising during live sporting events and limits terminology used to induce gambling; restricts sports betting operators from accepting more than 5 deposits from a customer in a 24-hour period, requires ‘affordability checks’ on customers who place large wagers, and bars deposits made via credit card; and forbids the use of artificial intelligence to track players’ gambling habits to offer individualized promotions and to create gambling products (Tonko, n.d.). Part of Tonko’s goal with the bill is to define gambling as a public health issue, similar to tobacco, alcohol, opioids, and other addictive products (Thomsen, 2024).
The significant amount of money associated with sports betting – for states, the sportsbooks, and the bettors – means that it is not going away any time soon. In fact, more states continue to legalize sports betting. Therefore, state and federal officials need to tackle the risks associated with gambling and continue to identify legislation, policies, and treatment programs tailored to those most susceptible to the harms of sports betting.
Kelly J. Brummett is a Visiting Clinical Assistant Professor of Business Law and Ethics at Indiana University – Kelley School of Business.
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