In a recent Forbes report, the spotlight was cast on the expanding sports betting industry in America. While the industry is experiencing unprecedented growth and profitability, an alarming rise in gambling disorders shadows these successes.
Since the Supreme Court’s 2018 ruling, sports betting has become a legal pastime in 38 states, with six more considering its legalization. This means that over two-thirds of American adults, approximately 164 million people, now reside in a legal sports-betting market.
The American Gaming Association’s report on the industry’s financial performance for 2023 revealed record-breaking revenues for the third consecutive year. The total revenue from casino games, sports betting, and iGaming reached $66.52 billion, marking a 10% increase from the previous record set in 2022.
The Marketing Machine Behind Sports Betting
The sports betting boom is propelled by strategic partnerships involving celebrity influencers, professional sports sponsorships, and media outlets, including television networks, radio, and online platforms.
Advertising and marketing campaigns are omnipresent, saturating airwaves and social media sites. Commercials often showcase “risk-free” bets, with former athletes endorsing gambling companies.
The advent of online apps has made gambling more accessible than ever. Virtually all betting can now be done from a smartphone. The most popular and straightforward form of sports wager is the money line bet, which is placed on the outcome of a game, match, or race, without any point spread or other factors involved.
The Hidden Cost: Rising Gambling Disorders
Despite the increasing legality and popularity of sports betting, the incidence of gambling disorders is reaching an all-time high. The National Council on Problem Gambling estimates that about 2.5 million adults in the U.S. are severely addicted to gambling, with another four to six million people experiencing mild to moderate gambling problems.
Pathological or “compulsive” gambling is recognized as a diagnosable mental disorder by the American Psychiatric Association and the American Medical Association. It is characterized by an obsession with wagers, an inability to cut down or stop, gambling beyond one’s means, borrowing money to finance the habit, or chasing losses by betting more.
Like any other addictive condition, a gambling disorder can have severe impacts on a person’s physical and mental health. Newsweek reported last year that the ease of access to new gambling options has corresponded with an increased risk of serious gambling problems, including addiction.
This issue appears to disproportionately affect young male adults. Compulsive gambling habits can lead to escalating loans, credit card debt, and pressure to borrow or steal. Alarmingly, among addiction disorders, gambling has a comparatively high suicide attempt rate.
Call for Federal Intervention
Several statewide surveys have shown increased numbers in the incidence and prevalence of gambling disorders since 2018. Nearly every state in the U.S. has seen increased demand in recent years for treatment services related to problems caused by gambling.
Currently, there is no federal funding to treat gambling disorders. However, Senator Richard Blumenthal of Connecticut is advocating for change. In January, he introduced the Gambling Addiction Recovery, Investment, and Treatment Act, which allocates federal funds to help prevent, treat, and study gambling addiction.
The Legislative Response: A Push for Regulation
Senator Blumenthal is not alone in his efforts. Congressman Paul Tonko of New York was the first lawmaker to formally raise concerns when he introduced the Betting on our Future Act last year. This legislation would ban all online and electronic advertising of sports gambling.
Tonko asserts that ads pose a particularly dangerous “threat to young adults unaware of the risks involved in gambling, and to individuals prone to addiction.” Despite most jurisdictions requiring advertisements to include messages that encourage responsible gambling and helplines for problem gamblers, Tonko believes that the sports betting industry has been operating in a “Wild West, largely unregulated environment,” creating a “massive and growing public health crisis involving a known, addictive product.”
Looking Abroad: Lessons from Europe
As the U.S. grapples with these issues, many nations in Europe are moving to place strict limits on promotions or abolish gambling ads altogether. The experiences of other countries with legal gambling may offer insights into potential future directions for the U.S. Throughout Europe, government authorities are clamping down on gambling commercials, sponsorships, and the participation of celebrities in ad campaigns.
In the U.K., a country with a long tradition of legal gambling, mobile betting became legal in 2005. However, the U.K.'s Committee of Advertising Practice recently banned betting advertisements featuring former sports stars and social media influencers
NetGaming’s CEO, Pallavi Deshmukh.
