I regularly do something I wish I hadn’t done. I bet on sports online.
Maybe you’ve seen the ads for FanDuel, DraftKings, Fanatics, etc. That’s certainly the case if you’ve recently turned on a sports program, as the ads come in hot and heavy every few minutes, including on SportsCenter, which now offers segments on what bets to make. Hell, ESPN even got in on the action, literally, with ESPN Bet.
These apps are now huge businesses. It is estimated that online sports betting companies will bring in around $15 billion in 2024 and 37.6 million people bet online in the United States. Around three in four punters are men. Sporting shows and events are regularly sponsored by one of the online sports betting sites.
I am one of their customers. I watch a lot of sports and started betting on various games and events a few years ago. I was lured in part by a promotion that gave me $250 if I made a few bets. Who would turn down free money? Not me.
This is a relatively recent development, since in 2018, the Supreme Court ruled that it was up to each state to decide whether sports betting would be legal within its borders. New Jersey was the first to declare betting legal and many others quickly followed; Today, we are up to 38 states that have legalized betting in a certain context.
So what are the problems?
The data is clear and compelling – but not good. As author Charles Fain Lehman says, “the rise of sports gambling has caused a wave of financial and family misery, which disproportionately hits the most economically precarious households.”
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First, households save less. One study showed that for every dollar spent on betting, households put $2 less into their investment accounts. You see more and more families overextending a bank account or reaching the limit on a credit card. This makes sense to me; the money I bet stays either in the app or in a bank account to be recycled for the next bet.
Second, personal bankruptcies are increasing. Economists found that legalizing sports betting increased a household’s risk of bankruptcy by 25 to 30 percent, with the risk highest among young men living in low-income counties. Bad debt rates have also increased.
Third, domestic violence is increasing. It’s hard to say out loud, but anyone who has bet on sports can see the connection. When you lose money on a bet, it puts you in a bad mood. It stresses you out. If you go home with a partner, it could be your partner who suffers. Researchers estimate that the legalization of sports betting leads to a 9% increase in domestic violence.
These are measurable phenomena, but addiction is also linked to feelings of anxiety and depression. I understand. I used to watch a sporting event and support a team, player or result. Emotions are different when it comes to money. It turned a feeling of disappointment into calamity – and in my case, the money I’m betting isn’t going to stop me from putting food on the table. Imagine if that were the case?
Athletes are now also reporting that fans are barking at them for “ruining their parlay.” In the past, fans may have liked or identified with the athlete. Now the fan’s bet is the dominant thing in his mind.
Betting on sports online is a perfect storm for men in that it combines things we enjoy on a visceral level: sports, money, speed, risk and the thought that we know something that the others ignore it. It’s social and it makes spending time playing sports seem like a job that will earn you money. But what makes it such a powerful intoxicant also gives it the ability to ruin your financial life, your relationships, and your mental health.
I would like to see the regulations on this issue rethought. The main imperative right now is for states that have not legalized sports betting – Alabama, Alaska, California, Georgia, Hawaii, Idaho, Minnesota, Missouri, Texas and Utah – to keep it from reaching people’s phones. people. I’m sure companies are in your seats right now making their case. “It’s an easy tax recipe and everyone does it! It’s fun!” But the facts are clear. Online sports betting is the equivalent of a new tax on Americans that particularly targets vulnerable and low-income men. This increases financial stress and emotional problems. This is not what your citizens need.
Andrew Yang is a businessman, lawyer, philanthropist, and former candidate for President of the United States. In July 2022, Yang, alongside Democrats, Republicans, and independents, launched the new Forward Party to give Americans more choices in our democracy.
The opinions expressed in this article are those of the author.