By Mark LaSota, Ph.D., Emporia State University
Gambling is a guilty pleasure enjoyed by many in the United States. Since the U.S. Supreme Court overturned the Professional and Amateur Sports Protection Act of 1992 and removed the federal ban on state authorization of sports betting, the sports betting industry has experienced exponential growth and the market continues to expand. Murphy v. NCAA (2018) helped facilitate an unparalleled surge in the sports betting industry. The American Gaming Association (2020) indicated Americans wagered $1.2 billion in August 2020, an increase of 90.2 percent from a year before. In September 2021, New Jersey’s online and retail sportsbooks generated a record $1.01 billion (Play NJ, 2021). Several states are getting in on the action and the industry does not appear to be slowing down any time soon.
Proponents of sports betting legislation argue widespread legalization of the industry will lead to economic growth. However, ominous signs point to a significant addiction issue and some experts fear the dangers are not being adequately addressed (Fazio, 2021). Online apps (such as FanDuel and DraftKings) are common methods used for sports betting and make it easy to place bets. According to Neva Pryor, executive director of the Council on Compulsive Gambling in New Jersey, “availability and accessibility of sports wagering” pose some of the greatest risks for addiction (Campanile, 2019).
Compulsive gambling is a mental disorder recognized by DSM-5 that is linked to behaviors such as “betting increasing amounts of money, inability to limit or stop gambling, and preoccupation with gambling” (American Psychological Association, 2022). Compulsive gamblers often bet significant amounts of money despite the physical, psychological, financial, or social consequences. Additionally, compulsive gambling has been linked to depression and cardiovascular disease (Germain, et al., 2011).
During the Covid-19 pandemic, sports betting rose to unprecedented levels. According to a recent survey commissioned by the National Council on Problem Gambling (2021), individuals who bet on sports displayed significantly higher levels of problematic gambling than other gamblers, and younger individuals tend to be at a higher risk of addiction (Fazio, 2021). There have been several instances where people have lost significant portions of their life savings due to sports betting. One such example is an anonymous man in his twenties from Rhode Island who took out four high interest loans, depleted his 401K account, and accumulated over $200,000 of debt (Schapiro, 2021).
How is this issue being addressed?
In October 2021, the NFL decided to expand their partnership with the National Council on Problem Gambling and adopted a “Responsible Betting Awareness Campaign” to teach prospective gamblers to set budgets and limits, use licensed and regulated sportsbooks, and ask for help if they are losing control. This is a big step for a major sports league, but these types of programs tend to be more reactionary than preventative. Although the industry is heavily regulated and online sports betting sites implement measures to control problem gambling, there is growing concern among addiction healthcare professionals regarding the protection of gamblers who are at risk for suicide (Schapiro, 2021).
What more can be done?
The U.S. Constitution emphasizes the power of individual states to create and enforce their own laws. These principles provide sovereignty and allow states to do what is in the best interest of their constituents. However, one of the primary responsibilities of state governments is to protect its people. During the Covid-19 pandemic, various states employed drastic measures to address public safety. Yet, several of those states are now reaping the benefits of tax revenue from sports betting. If states will not protect their communities, perhaps there should be some federal oversight to protect U.S. citizens. Increased restrictions and stricter betting limits are possible measures that may be implemented.
A second action addresses the limited availability of recovery centers to meet the rising demand and insubstantial funds dedicated to gambling addiction. One recovery center in Arizona reported twice as many young adults seeking treatment for gambling problems within the past two years (Fazio, 2021). In New York, government officials estimate the state will gain $500 million in annual tax revenue from the sports betting industry and only $6 million per year will be used to combat gambling addiction (Pempus, 2021). Therefore, more funds should be prioritized and used to provide greater accessibility to trained professionals at help centers and rehab facilities.
Lastly, as a result of the Master Settlement Agreement passed in 1997, tobacco companies were held accountable for deceptive marketing and banned from advertising on billboards and public transportation as well as prohibited from targeting young people with the usage of cartoons (e.g., Joe Camel, Marlboro Man). Today, the gambling industry has worked hard to create a strong link between major sports events and betting. The ads make winning look so easy. Placing advertising restrictions on sports betting would not be an unprecedented move. In Italy, all gambling advertisements have been banned since 2019 and sports betting advertisements are not allowed during games in England (Edelstein, 2021).
To be fair, there have been some organizational actions taken to promote responsible sports gambling. However, more can be done.
Dr. Mark LaSota is an Assistant Professor and the Director of Sport Leadership and Recreation at Emporia State University.
References
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