The US's growing addiction to sports betting: The impact on individuals
His relationship with his girlfriend had fallen apart, his friendships were no longer strong, and he was facing financial troubles.
Malek recalls, "I realized that all my memories revolved around gambling." Whenever he went out with his girlfriend and friends, he would always tell her at the end of the night, "This was a great night because this bet won, and I won this much."
In a desperate attempt to save his relationship, Malek informed his Gamblers Anonymous mentor that he would abstain from placing any bets for a period of six months. However, Malek has never placed a bet since that day, which was approximately five years ago.
The yearly Super Bowl billions and the Kentucky Derby millions, together with stories like Malek's, have raised the issue of the United States' complex relationship with sports betting.
Malek admits that he was introduced to illegal bookmakers during his sophomore year of college. He wasn't concerned about the legality or legitimacy of the process; he simply enjoyed the thrill of wagering against actual people, feeling that he was better than them.
Malek vividly remembers the first time he won $10 from betting. "It warped my mind," he says. "I believed that I had all figured it out. This was easy, this was fantastic."
Before long, his bets transformed from $10 to $100 and from there to stakes worth thousands of dollars. When he began incurring losses and chasing those losses, Malek experienced some discomfort. But his mindset at the time was preoccupied with attempting to find solutions for his problems, so he didn't recognize the issue as a serious one.
His parents were the first to notice "sketchy individuals" messaging him, and his academic performance was also suffering. This made Malek realize he had become far too engrossed in the world of gambling.
In 2018, the Supreme Court abolished a 1992 law banning most states from allowing sports betting. Five years later, the gambling industry is deeply entrenched in American sports culture, with leagues, teams, athletes, and networks forging partnerships with betting organizations. Nevada was the only state that allowed sports betting in 2018, but today, it's legal in 38 states and the District of Columbia, with legislative activity regarding sports betting in an additional six states.
The Super Bowl in 2023 attracted $10.49 billion in bets, which represents a 24.8% increase compared to the previous year, according to the AGA's (American Gaming Association) gaming revenue tracker. The AGA expected 67.8 million American adults (26%) to wager an estimated $23.1 billion on the event, a 35% increase from the previous year.
Within the past year, $120 billion was wagered legally in the United States.
"In America, as long as there have been sports to gamble on, people have been betting on sports," said Joe Maloney, Senior Vice President of the AGA. "The Supreme Court's decision in 2018 allowed for gamblers to be brought into the legal marketplace and for tax revenue to be generated."
In 2023, more than $11 billion in state taxes were collected.
According to the US Census, New York state collected the most in tax revenue.
In an interview with CNN Sport, Maloney asserts that one of the benefits of legalized sports betting is the measures implemented to support people with gambling addictions.
"When you had a thriving illegal market for near to five decades in this nation, there was never any support provided for those exhibiting problematic behavior," Maloney adds. "We're particularly proud that… there's more money being invested into problem gambling in this country than ever before."
Keith Whyte, executive director of the NCPG (National Council on Problem Gambling), remains skeptical.
"We haven't witnessed any progress at all," Whyte claims. "In fact, the danger has increased by approximately 30%."
"I'm currently in the District of Columbia, where the mayor eradicated every cent of public funding designed to tackle and treat gambling issues. The National Council on Problem Gambling and the AGA are based here – the country's capital – and they got rid of all public funding for problem gambling."
The presence of gambling companies broadcasting partnerships with major sports stars like LeBron James and the launch of ESPN's official sportsbook is making it increasingly challenging to watch sports without gambling now being an element of the viewing experience.
Malek, a gambling awareness speaker, shares his opinion on gambling addiction's increase, "I have never seen such a change in the gambling landscape. It has opened the doors to casinos and sportsbooks. With every pound that is gambled, the stakes become higher, and when things become riskier, people are more inclined to engage in addictive behavior."
Malek explains, "The companies have far more control; they can more easily manipulate over how much people are gambling. The pace of innovation is unprecedented."
A 2023 research by the NCAA interviewed 18-22 year-olds and discovered that 52.8% of them were more motivated to gamble after witnessing gambling ads. For individuals with higher gambling tendencies, this figure rose to 80%.
Harmless advertising is not an issue for those who aren't high-risk gamblers, but the connection between such ads and high-risk gamblers is troubling.
Maloney argues that advertising is necessary for transitioning gamblers from illegal to legal markets.
"Advertising is crucial when markets are opened legally and regulated to inform bettors about the possibility of gambling legally." stated Maloney.
The continuous advertisements and promotions are a concern for NBA commissioner Adam Silver:
"I live in the New York region, where it's constantly bombarded with promotions for sports betting. I'm worried about young people, especially as it's still illegal for them to bet on sports," Silver said.
The creator of Reddit's gambling disorder forum, Ramon Zelaya, shares this perspective:
"The explosion of sports betting captivates the attention of younger gamblers, particularly those in their teens," Zelaya revealed.
"Young gamblers gravitate towards sports betting, online gambling, trading cryptocurrency, and so on. I've seen 16-year-olds on the subreddit," Zelaya remarked.
Despite Silver's concerns regarding the rapid spread of sports betting ads, the NBA formed a partnership with Sportradar in March to allow NBA League Pass users to view live odds during games.
"Where sports betting is legal, users can sign up to view and select bets directly on NBA League Pass. When ready to place a bet, they are redirected to FanDuel or DraftKings through a seamless link," according to the Sportradar statement.
Malek discussed the potential dangers of this convenience:
"With it right there, it was so simple to just click a button," he said.
Nonetheless, Maloney highlighted the advantages that technological advancements offer the betting business and its consumers:
"Innovation's speed is increasing, particularly in terms of fan engagement and in-play betting. Bettors and the industry will continue to collaborate," Maloney stated.
However, Whyte expressed concern about in-play bettors' unawareness of true odds, claiming that it's nearly impossible to calculate them in just 30 seconds.
The gambling industry points to its ongoing commitment to "responsible gambling," with three-quarters of bettors acknowledging seeing a responsible gambling message in the past year, up from 71% in 2023.
Betting Integrity
Due to gambling's expansion, concerns regarding player involvement in betting have risen. The NBA recently banned Toronto Raptors player Jontay Porter for breaching gambling regulations. Porter had previously disclosed confidential information to bettors, restricted his own participation in games for betting purposes, and wagered on NBA games.
This scenario alarms Silver:
"Betting on our games and being directly involved in the gambling process by a player is a cardinal sin in the NBA. It's the worst thing you can do," commented Silver.
Porter didn't respond to CNN's request for comment after his ban was announced.
In March, the NBA also looked into unusual prop bets regarding Porter, with DraftKings Sportsbook pointing out two specific games where Porter's prop bets were flagged in its daily betting insights.
A DraftKings representative responded to CNN after Porter's ban: "We have no comment on this story. However, it's crucial to note that legal and regulated sports betting often identifies and reports suspicious activity, protecting the integrity of the sport better than the illegal market."
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Source: edition.cnn.com
