Author: Gabriel Horowitz Rossi
Graphics: Business Review at Berkeley
Sports betting is experiencing a surge in popularity and promotion. Do people understand the risks of widespread gambling? Find out more about the damage gambling is inflicting on our sports and on the lives of everyday Americans.
A New Dawn in Sports
Everyone in America has noticed the Draft Kings ads. The incessant FanDuel commercials and those mind-numbing BetMGM promotions. Ads for different sportsbooks, casinos, and apps galore. ESPNBet, Caesars, Underdog. All types — parlays, lines, over/unders — and more options than ever before!
So what has caused this outright explosion of sports gambling into our lives?
It’s clear that the rise of sports gambling has aligned with its legalization, as sports betting has been legalized by many states following the Supreme Court’s 2018 decision to strike down the Professional and Amateur Sports Protection Act (PASPA).
Image 1: Where Sports Betting is Legal in the U.S.
Currently, 39% of Americans bet on sports, with an alarming 15% indicating that they personally know someone with a related gambling problem.
In 2024, overall sports betting revenue reached a record $147.9 billion — with 95% of the activity happening online — a milestone that reflects the industry’s rise.
Perhaps this is why you’re seeing celebrities and superstar athletes like Tom Brady, Snoop Dogg, and Kevin Hart on gambling advertisements; the money is there to be found!
Gambler’s Disease?
With a large number of Americans emptying their pockets out for Titans-Jaguars on Thursday Night Football, it is important to perhaps consider the repercussions that sports betting has produced.
For instance, new studies have found that the average credit score has decreased in states that legalized sports betting. This matches substantial increases in average bankruptcy, which has led researchers to conclude that gambling legalization directly harms consumer financial health.
In-game betting has expanded, with multi events, free bets, and direct offers enticing more and more vulnerable individuals. This has made sports betting a jewel among casinos, as it has drained individual household finances more than any other strain of gambling. Dishearteningly, though, a study found that online searches for help with gambling addiction have risen 23% since 2018.
Those Derrick Henry TD props may look juicy, but at what cost?
Angry Betters
Even more alarmingly, “angry sports bettors” were tracked by a NCAA study to cause 1 in 3 of abusive verbal messages reported in DMs to student athletes. Unsurprisingly, 59% of verbal abuse cases were targeted at women athletes.
Universities claim to work to protect all students from verbal abuse on social media. Student athletes, however, are consistently in the national spotlight. This makes their direct threat of abuse astronomically higher.
Professional players have similarly had to face abuse, even on a larger scale. Fantasy sports and prop bets have made player performances subject to constant evaluation. David Montgomery of the Detroit Lions, a stud running back himself, revealed how he suffered from suicidal thoughts his rookie year, in large part due to criticism from fantasy football managers and betters.
The Empire Strikes Back
Despite widespread criticism, the sports betting industry has continued to make waves in the entertainment services space. Betting companies are continually securing partnerships and deals with sports teams from the “major five leagues,” with average values reaching over $13.6 million.
These partnerships have also skyrocketed due to the emergence of FanDuel and DraftKings as major market players. Together, these companies hold almost 70% of the online sports gambling market share, with significant user loyalty. Their partnerships have extended to arenas, stadiums, individuals (like Michael Jordan), and even media companies.
These leagues maintain their competitive integrity (although the NFL has faced rigging accusations —mainly from Buffalo Bills fans), and players are not allowed to bet on their respective sport. Despite this, fans are constantly bombarded with ads and pop-ups encouraging them to spend and risk it all. With the concerns over sports betting as a practice becoming more widely known, perhaps it’s time for us to encourage just watching the games?
We all know that friend that is way too invested in an in-season tournament Wizards-Raptors matchup. That uncle that directly threatened Najee Harris during Steelers games. That buddy that just risked a fortune on Ladd McConkey’s yards.
Sports betting is a slippery slope, and facing it through hard economic conditions may prove insurmountable to some.
Conclusion
Considering the addictive nature of gambling, and the omnipresent popularity of national sports, it is worth wondering if this is a match made in hell. A dangerous experiment that could have real repercussions for vulnerable people. There is real value in sports betting, with all of the sportsbooks vying for a single prize: your hard earned cash! For everyday Americans, however, sports betting can lead to gambling addictions, and these often lead to second mortgages, lost savings, and bankrupt families. It is time for a national conversation about whether sports betting should be so widespread, or even so promoted.
Always remember: like father time, the casino is undefeated.
Take-Home Points
- Sports betting has surged in popularity since the Supreme Court’s 2018 ruling to strike down restrictions.
- Sports betting revenue is reaching record highs every year, and new partnerships with major leagues and celebrities are coming through.
- Over a third of Americans bet on sports, and studies have found links with decreased credit scores and rates of bankruptcy.
- College and pro-level players have felt increased pressure to perform, mainly due to ‘angry-bettors’.
- Sports betting needs an added level of scrutiny, given its effects on everyday Americans.
Haha, absolutely stellar read! The rise of betting is undeniable, with revenue hitting record highs and everyone from Snoop Dogg to average Joes getting in on the action. Its wild how fast its grown, especially with online betting being so accessible – who doesnt want to add a little edge to the game? But honestly, the constant ads and the stories of financial chaos (and angry bettors harassing athletes!) are pretty laughable. Its like the industry is playing on our biggest weaknesses: love of sports + desire for easy money. The partnerships with major leagues are also a masterclass in chasing that cash. All in all, a fascinating look at an industry thats definitely changing the game – both on and off the field!