The State of Sports Betting In The U.S.
The problem at hand and the dangers to come
By: Matthew Walsh
An estimated $2.71 billion was wagered on this year’s Men’s and Women’s NCAA “March Madness” tournaments, according to the American Gaming Association. That figure nearly doubles the amount bet on the 2024 Super Bowl and is pooled together from the 38 states that have now legalized online sports betting. With eight more states in the process of legalization, by next March, $2.71 billion will seem like a drop in the bucket. However, the problem with the current state of sports betting is two-fold. First, the accessibility and ease of placing an online bet have resulted in a drastic increase in the number of wagers placed. Second, among the severe consequences gambling will have on future youth, gambling creates a pathway to addiction.
In the past, if one wanted to spend a night gambling, they would have to drive to the nearest casino, a commitment that would entail leaving your home and spending night-time driving. However, in 2018 the Supreme Court overturned the Professional and Amateur Sports Protection Act, officially legalizing online sports betting. After the act was overruled, which previously prohibited the advertisement and operation of professional sports betting, 1 in every 5 American adults now has an online sports betting account. Requiring only an internet-connected device, online betting has become far more accessible than traditional in-person gambling. Placing bets from the comfort of one’s home regularizes gambling and also makes it harder to “walk away.” The accessibility of online sports gambling in the United States is also reflected in the sports betting industry’s unprecedented growth. The industry’s revenues skyrocketed by 44.5% in the past year, amounting to $10.9 billion by the end of 2023.
A large part of the industry’s striking growth can be attributed to enormous investments in advertising by leading gambling companies. In 2023, four leading U.S. online sports betting services—DraftKings, FanDuel, Prize Picks, and BetMGM—combined spent nearly $1 bil flion on advertising. These advertisements come in many different formats. For example, throughout televised sports games, “pop-ups” from sponsored sports betting services will appear in the corner of the broadcast with live odds. These “live bets” aim to convince sports fans, who have been watching the game at home and feel like they know what the outcome will be, to place a bet.
In addition to in-game advertisements, long-form ads flood broadcasts during commercial breaks. These repetitive long-form ads are specially designed to influence individuals under 18. Ads from companies like DraftKings, which use popular celebrities like Kevin Hart as the face of their advertisements, and FanDuel, which promotes enticing deals like “Bet 5, Get 200,” are focused on constantly obtaining new users. While sports betting companies claim to exclusively advertise to individuals 18 years or older, anyone who uses social media platforms or watches nationally broadcasted sports are accustomed to seeing these advertisements. According to a 2018 study from the National Library of Medicine that surveyed over 100 children from the ages of 11-16, it was found that 81.1% of the children were able to name at least one sports betting company from advertisements they had seen, and 22.5% planned on gambling when they turned 18. By funding streams of constant ads, sports betting companies aim to portray sports betting as a regular pastime to younger generations.
In addition to being bombarded by ads, many children under 18 use mobile apps that simulate sports betting. One app in particular that is popular among high schoolers is Fliff: an app that allows account holders to place bets and parlays using “online tokens.” Using renewable “fake money,” apps like Fliff draw in teenagers attracted to placing bets on their favorite teams and players without any downsides. Similarly, countless apps and games utilize loot boxes —reward packages where you don’t know what you’ll get— and their addictive nature to keep kids hooked. Starting at a young age on “fake-betting” services like Fliff and growing up enjoying the thrill of “mystery boxes,” teenagers form harmful habits that will be brought into adulthood.
While some may argue that seeing promotions for sports betting and playing fake-betting games won’t translate into an adult gambling addiction, once something becomes ingrained in society, it most certainly will have an impact on current youth and possibly future generations. One example of this pattern was the rapid popularization of the “Juul” e-cigarette whose sales increased by over 700% in 2016. Today, “vapes” have also caused an ongoing epidemic in high schools across the nation. Similar to when using Juuls and vapes, placing sports bets releases dopamine; a neurotransmitter that creates feelings of pleasure, motivation, and accomplishment. For teenagers still in their developmental years with lower impulse controls, an addiction to activities that release dopamine can be easy to form and hard to shake. Once an addiction to sports betting is formed, futures are destroyed. According to the Mayo Clinic, individuals who develop addictions and frequently gamble are more susceptible to substance misuse, anxiety, depression, and other personality disorders. Sadly, 82% of heavy gamblers who have gone homeless have also cited a direct correlation between their addictions and their state of homelessness.
At the end of the day, the U.S. online sports betting industry has experienced an alarming rate of growth by simplifying and regularizing gambling. Without any intentions of slowing down, sports betting companies are placing “bets of their own” on future generations by funneling money into their advertisements. With youth being drawn into the world of gambling by ads on their TV and apps on their phone, there is no telling what the future of sports betting in the U.S. will be like – but the odds don’t look great.
Image of a man using Fanduel, a popular sports betting service.
