BY: KELLY KUJAWA| JULY 7, 2024
FanDuel, DraftKings, and BetMGM make gambling smartphone-convenient. And that’s dangerous.
Convenience and excessive advertising is a primary reason why gambling addiction has increased. Bets, that are extensively advertised, can be placed in real time on plays, scores, and players, reducing the time between the risk and reward, increasing the susceptibility of bettors towards addiction.
The convenient access produces unintended consequences, predominantly in the stark rise of gambling addiction, especially in youth. Young college-aged men currently make up 40 percent of callers to gambling addiction hotlines. Their susceptibility, a combination of youth and lack of financial literacy, and access to financial aid, incentivizes the industry to advertise to them specifically.
Sports betting companies partner with college campuses, such as Michigan State, LSU, Maryland, University of Denver and the University of Colorado, to allow advertisements during their games and on their campuses, increasing the amount of college students exposed to the industry.
The lack of regulation on the industry has caused the incessant advertising strategy, significantly increasing negative betting behavior due to the normalization of the risky behaviors. The advertising budget for sports betting peaked in 2022 at $1.4 million. Given that recent research shows a link between gambling marketing and riskier gambling practices, this raises a few eyebrows.
Celebrities and athletes regularly appear in commercials encouraging fans to engage in sports betting. DraftKings partnered with Kevin Hart and David Pritz, and Rob Gronkowski collaborated with FanDuel for the highly publicized “FanDuel Kick of Destiny” in 2023 and 2024.
Sports betting ads frequent media due to their lack of regulation (images from various sources).
The ethics behind the sports betting industry calls into question the negative effect it has on bettors. The format of the apps used are similar to social media, set up in a way to keep bettors engaged with the platform from anywhere at any time, to the point of their own detriment.
The sports betting industry draws bettors in due to the lack of regulation on the industry, pushing bettors into addiction due to its sheer ability to persistently advertise and go unchecked.
Sports betting advertisements are largely unregulated, allowing younger audiences to view them at a frequent rate. Often the largest constraint required of them is including the legal gambling age and information for problem gamblers.
Advertising for sports betting is often found in major stadiums during games. Image from Cunningham/MLB Photos/Getty Images
The sports betting industry has accumulated $5 billion in tax revenue since 2018. The states that have legalized sports betting allocate their cut as they see fit, typically into education and workforce development programs, local government, and building infrastructure.
While the industry is lucrative for the government, the consequences of the lack of regulation has drawn national attention. The National Council on Problem Gambling places 2.5 million adults in the US as being severely addicted to gambling, with another four to six million as having mild to moderate gambling problems.
An addicted society places strain on the government. Gambling addicts are often driven into severe debt, divorce, and to attempt suicide. The government then has to divert funding and resources towards gambling addiction recovery programs, something already being increasingly demanded across the nation.
The lack of regulation has been noted by several politicians. Senator Richard Blumenthal of Connecticut introduced the Gambling Addiction Recovery, Investment, and Treatment Act (GRIT), which would work to set aside money from revenue of sports betting for gambling addiction treatment and research. The Betting on Our Future bill, created by Congressman Paul Tonko of New York, would prevent advertisements from ensnaring youth, similar to the Federal Cigarette Labeling and Advertising Act.
Sports betting is successful, unregulated, and controversial. Does its success justify the consequences? Should it be regulated? Is the government responsible for aiding the increased rate of gambling addicts? Keep your eye on the ball (or bets, in this case), and let us know what you think down below!
Works Consulted
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