Gambling Legalization: A Mistake We Can’t Turn Back From – Harvard Political Review

My parents joke that the first thing I ever read was the Washington Post sports section. Growing up, my days started and ended with the bolded scores in that paper. Ever since my first foray into those hallowed pages, my knowledge of sports has run deep. 

That’s why, when my friend told me to download PrizePicks — the daily fantasy sports betting app — a few months ago, I figured I would be at an advantage. Every day, PrizePicks and other similar sports gambling sites use algorithms to set lines on myriad statistics for players across a wide range of sports. Users then wager money if they believe a given player will go “over” or “under” their statistical line. With new calculations every day, there’s always an opportunity to make some money — seemingly. 

Luckily, my experiences with sports gambling have been tame: I bet a maximum of $10 per slip and stick to sports I know. But it could be far worse. 

I could be Brian Meister, a therapist who gambled away a year’s salary in one night of sports betting. Or I could be Noah Vineberg, a recovering gambling addict who spent over $600,000 on sports gambling. While battling his addiction, Vineberg stole money from his parents, divorced his wife, and accrued gambling debts so large that the pressure to repay his loans almost drove him to suicide. 

The Gambling Industry’s Influence

Behind these stories is a predatory industry, one that has ignored the horrific consequences of reckless gambling and actively lobbied against resources that would deter such tragedies. The expansion of the sports betting industry’s political influence began to unfold in May 2018, when the Supreme Court overhauled sports gambling in Murphy v. National Collegiate Athletic Association. This ruling overturned the 1992 Professional and Amateur Sports Protection Act, which had effectively banned state-sanctioned sports betting in most states. 

In 2011, New Jersey challenged the constitutionality of PAPSA in response to a state referendum wherein voters said sports gambling should be legalized in state casinos. The state argued that the law violated the 10th Amendment, which reserves powers not covered in the Constitution for states to handle. SCOTUS agreed that PAPSA commandeered state governments by prohibiting them from legalizing sports betting. Since May 2018, more than 38 states have legalized sports betting, and Americans have legally wagered $220 billion. 

These staggering numbers did not arise in a vacuum, though. Rather, they are a result of a systematic, predatory campaign by greedy gambling companies. Such companies actively market to our country’s youth and most socioeconomically vulnerable through misleading depictions of their sites as low-risk, endorsements from celebrities who promote unhealthy gambling habits, and in-game features that take advantage of psychological triggers. Today, sports gambling is an epidemic in the United States — one that requires immediate government intervention. 

Prior to Murphy, states had no gambling laws on the books, meaning the Court’s decision opened the door for gambling companies to lobby for new legislation that would shape the rules in their favor. Specifically, gambling companies sought to reduce revenue taxes in order to fatten profit margins and lower regulations on their advertisements to more effectively drive consumers to their platforms.

Pre-PAPSA, gambling was done in casinos or on mobile apps in very select states. After the decision, companies bought online platforms that were able to reach prospective gamblers nationwide. The shift to mobile applications has been dramatic, with a 2019 study estimating that 90% of the gambling industry will be mobile by 2029. Gambling companies have realized that users bet more the more accessible gambling is to them, in the same way that individuals who live closer to casinos are more likely to become addicted to gambling. In 2023 alone, the gambling industry spent $817 million on lobbying, the second-highest amount spent after the food industry. 

Lobbying efforts have primarily sought to deregulate the advertising space and give gambling companies flexibility in how they market to the public. In New York, a Guardian investigation revealed that FanDuel, a daily fantasy sports gambling company, lobbied against numerous measures intended to “prohibit operators from using ‘keywords or similar methods’ to attract people ‘who are or may be problem gamblers’ to their sites.” 

The gambling industry also “helped defeat a measure to ban betting ads during sports broadcasts” in multiple states. This has since led to the proliferation of advertisements for online gambling. Post-PASPA, the industry has unleashed waves of misleading ads to encourage further use of their sites, with spending totaling nearly $1.8 billion in 2022 alone. 

Predatory Marketing Tactics

According to Joe Hernandez of NPR, due to the lack of regulation at the federal and state levels, there are very few guidelines to protect Americans against the predatory marketing practices of gambling companies. Today, gambling companies’ advertisements deceive their viewers when it comes to the gambling experience and what their platforms actually offer. 

For instance, gambling companies spend millions of dollars to partner with celebrities, sports teams, and sports leagues to spread awareness for their sites. Securing advertisements with figures like J.B. Smoove, Peyton and Eli Manning, and Charles Barkley transforms gambling from a sketchy activity to part of mainstream pop culture. And these athletes know the dark side of gambling — they’ve just been paid off not to mention it. Charles Barkley, for one, has admitted to losing $25 million in gambling — that’s $25 million that most Americans can’t afford to lose. 

The content of these advertisements is equally duplicitous. While the odds are often against gamblers, the advertisements highlight promotional events that allow users to risk less and still — potentially — win big. For example, during major sporting events, like the Super Bowl or World Series, the lines for the playing teams will be drastically reduced for consumers. While these aspects of the gambling experience are glorified in advertisements, they are detrimental to users. One 2017 study found such promotions have a detrimental impact on people with preexisting gambling addictions. The depiction of these promotions is also dishonest. While they are presented as risk-free, this is categorically untrue; while betters’ chances of winning are increased, such promotions still invite risk. In January 2023, the Ohio Casino Control Commission fined DraftKings, Caesars, and BetMGM for these tactics. Still, they’ve found their place in regularly aired advertisements. 

Who’s at Risk? 

As sports gambling becomes more accessible and its promotion more widespread, the frequency with which American adults engage in unhealthy betting patterns increases. Advertising is the key to sports gambling’s newfound accessibility, as the absence of laws on how companies can advertise has allowed the industry to understate the risks of their platforms. Regulation of marketing is, therefore, the key to reducing gambling disorders. 

Gambling is a Regressive Tendency

As such ads continue to make gambling appear innocent, the practice is increasingly viewed as a legitimate path to acquiring wealth. 

This is particularly concerning given that gambling is a regressive tendency among classes. According to a 2014 study from the University at Buffalo Research Institute on Addictions, the gambling addiction rate of the poor is nearly double that of the general population. The researchers speculated that this is perpetuated by the fact that less wealthy individuals more often lack models of financial success through “conventional means,” leading them to view gambling as a quick step toward wealth advancement. That same study also found that the economic distress resulting from gambling addiction extends to the families of gamblers, leading to a dangerous cycle of poverty. All the while, sports gambling companies rake in profits in a billion-dollar industry, conveniently ignoring the suffering of those who prop it up. 

Unfortunately, the U.S. faces significant challenges in providing adequate support to those suffering from gambling addictions. One of the primary obstacles is the refusal of the American healthcare system to consider gambling addiction a severe mental health condition. A study led by Leanne Quigley of Yeshiva University notes “the public stigma of gambling disorder [. . .] leads to problem concealment, reduced treatment-seeking, and decreased self-esteem.” This stigma not only discourages individuals from seeking help, but influences policy-making and funding priorities, resulting in limited resources being allocated to gambling-specific treatment and prevention programs.

The mental health workforce in the U.S. also has a history of being under-trained and underpaid. Many therapists and counselors do not receive specialized training in gambling disorders. In Kansas, for example, a KCUR investigative report found “the state only dedicates 2% of all money generated from gambling to its Problem Gambling and Addictions Grant Fund.” This low percentage is due to the lobbying from gambling companies, which have reduced taxes on the industry’s revenue. 

Additionally, many health insurance policies do not adequately cover treatment for gambling disorders. As a result, management for gambling comes out-of-pocket, creating a barrier to accessing effective treatment. Thus, seeking treatment for a gambling addiction has become only accessible to those who are least likely to suffer from an addiction in the first place. 

Regulating the Gambling Industry 

To address the gambling industry, one must seek to reform the immoral practices that allow so many to take up problem gambling. Because there’s a lack of proper infrastructure to combat gambling addictions, we must shift policy to try to deter addictions before they even happen. Regulators have struggled to provide direct support to those dealing with problem gambling, mainly because gambling companies have lobbied for significant deregulation. But there are steps the federal government could — and should — take to address the lack of accountability gambling companies face. Gambling companies clearly cannot be trusted to reform themselves, as they will lobby to fix the system in their favor. And while offering increased support for problem gamblers is necessary, it doesn’t address the root of the issue, which is that gambling companies have been allowed to engage in highly predatory practices.

For one, they could follow in the footsteps of other countries and cities that have cracked down on gambling. Ontario, for instance, banned celebrity endorsements of sports gambling. Similarly, U.K.’s Committee of Advertising Practice banned betting advertisements featuring sports stars and social media influencers. The Dutch government went further, announcing a ban on any advertisements promoting online sports gambling in July 2023. 
The U.S. could certainly take the most drastic of steps, especially given past precedent. Rep. Paul Tonko, D-N.Y., recently introduced legislation based on the Federal Cigarette Labeling and Advertising Act of the 1970s that would similarly ban sports gambling advertisements. The bill has since stalled, but current studies indicate Tonko’s idea would be effective. One 2014 study on the association between national gambling policies and disordered gambling prevalence rates in Europe found a decrease in damaging gambling in places where there were greater restrictions on advertising for online gambling. Regardless of the policy, though, it’s clear there needs to be government intervention. We owe it to those struggling with gambling addictions and who do not have the resources to fight back.