It’s Time to Rein in Sports Betting

If you watch sports or use the internet, advertisements for sports betting companies are completely unavoidable. The logos of big companies like DraftKings, FanDuel, and BetMGM are emblazoned on commentators' microphones, stadium walls, and annoyingly invasive pop-ups during games. After being legalized by the Supreme Court in 2018, sports betting is now legal in 32 states and D.C.. In the seven years since, the previously-underground industry has exploded in popularity, becoming increasingly normalized in American society. However, the negative effects have been clear; sports betting is simply a type of gambling. And unlike Vegas-style gambling, sports betting disproportionately affects young Americans.

Sports betting is, as the name suggests, a form of gambling where you bet on the outcome of sports games. Just like gambling in a casino, sports betting is addictive and can lead to disastrous financial and mental consequences. There is a proven correlation between sports bettors and problem bettors—people who become addicted to gambling. In fact, people who bet on sports are twice as likely as other gamblers to become problem bettors, and the effects of problem betting can be ruinous. Men with a gambling addiction accrue an average debt of $55,000 to $90,000; 20 percent of them file for bankruptcy; and one in five attempt suicide. The list goes on and on, but the most sinister aspect—what sets sports betting apart from regular betting—is how corporations have weaponized technology to target society’s most vulnerable group: the youth. A report commissioned by the NCAA found that 58 percent of 18 to 21 year old students gamble on sports, even when they are too young to do so, considering some states require participants to be 21 and older. Among those who bet on sports, nearly half are younger than 34. The reason is that sports betting is easily accessible through apps and the Internet, which are mainly accessed by younger audiences. It is more difficult to bet in person when you are underage, but online gambling significantly lowers the bar of entry.

Another major legitimizer of sports gambling companies is their official partnerships with sports teams and leagues. There are financial incentives for both the team and corporation when sports teams become an official partner of a betting app. That’s why these apps are pushed so heavily during sports games, even though teams are well aware of the impacts. Furthermore, sports betting is more attractive to the youth because of the large role sports play in American culture, along with appealing promotions and advertisements. Ads are prevalent all over social media, which is unsurprisingly frequented by teens and young adults. A recent study found that more than 1,700 ads were shown across leading social media platforms such as TikTok and Facebook in the span of a week, accumulating over 29 million views combined. Over 1,000 of the total 1,700 ads were disguised as organic posts, hiding their status as ads and avoiding what little industry regulations are currently in place. Seeing hundreds of ads normalizing and promoting these platforms slowly conditions young people to think of sports betting as something harmless, misleading them for what boils down to financial gain for betting corporations. 

Understanding why people gamble on sports is a good first step in figuring out how to effectively regulate it. Ignoring the fact that some people will gamble regardless of any external factors, the largest reasons are misleading advertisements and their online presences. In addition to the sheer number of advertisements, the content of these ads is equally disturbing. Not only do they often involve a staggering amount of A-list celebrities but also eye-bogglingly attractive sign-up or bonus bets that serve one purpose: to give potential gamblers a good first impression of the site, so they are more likely to stay and spend more money. The weaponization of our reliance on phones has essentially allowed us to carry casinos with us everywhere we go. If you leave a casino, it (probably) won’t send people to remind you of what you’re missing out on every day. If you have a sports betting app on your phone, it will send you daily push notifications about what bets are popular that day or entice you with deals and VIP offers. This has real, tangible effects. For example, psychiatrist Kavita Fischer tried to quit gambling, yet online apps kept her trapped. She ended up with deep six-figure losses. Just as notifications for social media platforms keep us coming back, notifications for gambling apps keep players addicted, even when they try their best to stop. 

With all that in mind, what is to be done? The best course of action is to create stringent regulations—even tighter than those on casino gambling, due to the ease of access and targeted marketing towards younger audiences. Ideally, effective legislation would tackle multiple facets of the problem by cracking down on gambling ads, making company-league sponsorships illegal, and forcing companies to create limits on how much a person can bet. In fact, there’s currently a bill called the SAFE Bet Act in the House that would limit the number of short-term deposits and outlaw gambling advertising in games. It would also restrict the ability of companies to use artificial intelligence to personalize deals and promotions that would ensnare the people deemed most likely to continue betting. This legislation, or any similar legislation, passing would be a strong step in the right direction. Regulation doesn’t necessarily have to come from the federal level, either. In the absence of federal regulation, state legislatures have an obligation to protect their constituents, especially when those constituents are calling for regulation. The patchwork nature of state-by-state regulation means that the difference between state legislations can be huge. When New Jersey has far more explicit regulations on sports betting than West Virginia does, the lack of West Virginian legislation allows innocent people to fall through the cracks. In fairness, any form of federal regulation would be a net positive, since there is no blanket federal regulation; bill H.R.2087 simply tries to establish minimum federal standards. 

Some readers may have an adverse reaction to this strong-handed approach. Much like the CEOs of the companies involved, many bring up statistics about how much tax revenue sports betting has generated; how it’s just simple fun that adds enjoyment to sports; or how legalization has allowed for regulation. Yes, sports betting has brought in tax revenue, and that tax revenue has no doubt had positive effects. However, the revenue alone is not very impactful, only amounting to around two billion dollars every year per state. Second, the proven negative impacts of sports betting far outweigh any supposed benefits. The fact is, a two billion billion increase in state revenue is not as impactful to the average person as personal bankruptcy—which increased by up to 30 percent in states that legalized sports betting—or the rise in gambling addictions, as shown by the double-digit increases in the number of people calling gambling hotlines. It scarcely needs to be stated that sports betting is not just fun and games. Very few sports fans truly enjoy being inundated with ads for sports betting during their game and during breaks. However, there is some truth to the connection between legalization and regulation. Legalized sports betting has opened the door to much easier regulation, which is why a complete sports gambling ban is not advisable, although there is evidence demonstrating that sports betting has not reduced illegal gambling. On the other hand, it is equally true that current federal regulation is nearly nonexistent and needs to exist so players in all states are protected.

Millions of Americans will continue to bet, and tens of thousands will be heavily affected. People will gamble and lose, which is inevitable. However, allowing large corporations to run rampant with advertising and deals, increasing these numbers, is not inevitable. Our phones have put Vegas in all our pockets. The best time to act was seven years ago, right after sports betting was legalized. The second best time is now.