Online Sports Betting Hurts Consumers
I have been saying for many years that gambling is the worst thing that has happened to sport ever!
It has changed the focus from the teams and competitors to where money can be potentially made on the games, the plays, the players and much more, It started with fantasy which move concentration away for the play of the game to the performance of individuals. What happened to most sports are a team game?
What I have been somewhat concerned about is what the unintended consequences might be as gambling becomes more of the driver of sports.
Not sure if it was unintended, but the major realignment of the college conferences is one change. So, universities such as Stanford and California are in the Atlantic Coast Conference which really makes a lot of sense. Also, not sure if it was unintended but the implementation of the NIL down to the high school level, while a benefit to a small percentage of students, is impacting all of school athletics as seen in transfers not only in the transfer portal at the college level, but also transfers among high schools. (And this is to say nothing about some of the misfortunate incidents that occur when young men with no experience with money are suddenly given large amounts of itl)
It is obvious that gambling is running most professional sports. The NFL and NBA have official betting sponsors, and all others will follow soon if they have not already, Pete Rose got thrown out of baseball for gambling. Now he might just have received a sharp reprimand, if that.
Then I came across this information which I find to be both predictable and disturbing.
In 30 states, as well as DC and Puerto Rico, everyone over the age of 21 is effectively walking around with a mini sports casino in their pocket. And this is affecting over all behaviors in ways that are not positive.
Online Sports Betting Hurts Consumers
Authors: Ben Krauss and Milan Singh Date: August 10, 2024
Ben Krauss and Milan Singh, in a compelling article on “Slow Boring,” delve into the significant and often overlooked issues surrounding online sports betting. They bring to light the financial and social perils exacerbated by the unregulated expansion of mobile sports gambling, particularly highlighting the deleterious effects on consumer financial health.
In 30 states plus DC and Puerto Rico, legal mobile sports betting has turned every smartphone into a potential gambling outlet. While this has surged the total sports wagers to billions annually, it has correspondingly increased the calls to addiction hotlines and underlined the adverse financial impacts on lower-income groups. The authors argue that the revenue generated by state taxes on gambling does not counterbalance the societal costs of increased addiction and financial instability. Formidable
Recent research solidifies their concerns. Two studies detailed in the article illustrate how legalized sports betting correlates with lower credit scores, heightened bankruptcy rates, and stunted positive financial behaviors like saving or investing. This trend is especially pronounced among low-income men who are the most susceptible to the pitfalls of gambling.
The first study by Hollenbeck, Larsen, and Proserpio utilizes a vast consumer credit dataset to analyze the financial impacts post-legalization. They found not only a general decline in credit scores but also a tangible increase in financial distress amongst populations in legalized states. The second study reinforces these findings by showing a significant uptick in sports betting, which does not supplant but rather supplements existing gambling habits, further detracting from financial stability and savings.
Krauss and Singh criticize the rapid and largely unchecked expansion of mobile betting, urging legislators to reconsider the trajectory of sports gambling laws. They suggest that while some regulatory bodies and betting platforms promote “responsible betting,” the inherent business model thrives on the losses of the most vulnerable gamblers.
Moreover, the authors touch upon the broader ambitions of the gambling industry to expand into mobile casino gambling, or “iGaming,” which poses even greater risks. With online sports gambling already proving detrimental, the potential legalization of more addictive casino games could exacerbate the issues.
In conclusion, the article is a sobering call for a more measured and regulated approach to online gambling, advocating for policies that genuinely safeguard consumer welfare rather than capitulating to the profit motives of the gambling industry. It underscores the need for a more profound legislative introspection into the economic and social impacts of gambling, suggesting that the current trajectory could lead to more severe societal costs if left unchecked.
