Expert Warns: “Impending Perfect Storm for Increases in Problem Gambling” Tied to Sports Betting

Sunday, February 12, 2023

GoLocalProv Sports Team

 

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Bally's Twin River Sports Betting PHOTO: GoLocal

Sports betting is seen to be a $150 billion industry, and this is assumed to be a conservative estimate, according to Legalsportsbetting.com.

GoLocal asks Providence College Professor Patrick Kelly about the state of sports gambling and what he foresees as the benefits and the dangers. Kelly is a professor of accountancy and specializes in issues of gambling and workplace fraud.

 

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1) GoLocal Question: What are the benefits of the proliferation of sports betting?

Professor. Kelly: There are two main benefits:

1.  Since 2018, there has been a shift from illegal sports betting that has been prevalent in the United States for decades to legal sports betting in those states that have authorized it.  Prior to the 2018 Supreme Court decision that found the Professional and Amateur Sports Protection Act (PASPA) unconstitutional, sports betting for single games was only legal in Nevada. Legalized sports betting is now state regulated. 

2.  States recognize the additional revenues associated with this new form of gambling.  Consistent with the operation of casinos, states know that sports betting can generate revenue, particularly if neighboring states do not legalize sports betting.  This is what happened with Rhode Island’s initial approval of sports betting.  However, Connecticut and now Massachusetts have and will provide similar sports betting opportunities to their citizens.  

 

2) GoLocal Question:  What are the adverse impacts?

Professor Kelly: The adverse impacts focus on the increased potential for problem gambling and its related social costs, which might include family costs, crime, bankruptcy, and suicide.  I have been doing research on problem gambling for over 15 years and many of the specific cases I have examined have been tragic, with significant harm impacting individuals, their families, and all too frequently, organizations where they work. 

Initial research from the National Council on Problem Gambling and state problem gambling organizations indicate that problem gambling has increased since states have authorized sports betting.  Since the legalization of sports betting is so recent there is not a lot of research on sports-related problem gambling.  However, anecdotal data suggests a problem that is expected to get worse as more states approve sports betting and more citizens bet on sports.  For example, after legalizing sports betting in Connecticut during the fall of 2021, calls to the Connecticut Council on Problem Gambling hotline increased by 400%.

I think we have an impending perfect storm for increases in problem gambling associated with sports betting. In the past five years, sports betting has been legalized in most U.S. states and many of the remaining states are considering such approval.  A majority of the states that have legalized sports betting have also approved mobile betting, which is expected to increase the problem gambling rate.  Additional sports gambling features in many states, including the option to bet multiple times during the game, also promotes problem gambling as sports bettors can “chase losses” in real-time. 

Research from the National Council on problem gambling also provides a profile of frequent sports bettors that is concerning:

Heavy sports bettors who meet the criteria for clinical gambling disorder are typically male, young (up to age 35), single, fully employed, and have a high level of education. They think sports gambling is more skill than luck, suggesting they’re prone to distortions in thinking. They affiliate with others who favor sports betting, frequently taking advantage of different types of promotions, and are generally highly impulsive (National Council on Problem Gambling. (2020) “A Review of Sports Wagering & Gambling Addiction Studies – Executive Summary.” Page. 2).

I am very concerned about the potential problem gambling increase for individuals that fit this NCPG Profile, since this includes college students, military members, and other young professionals who follow sports and think they will be very successful sports bettors.

I’m not sure if you recall this. In a 2019 interview with GoLocalProv, Keith Whyte from the NCPG estimated that mobile sports betting in RI would result in about 10,000 new problem gamblers.  That is a troubling figure for our small state. 

 

3) GoLocal Question: Do these limits -- such as gamblers in RI can't bet on PC games do they matter?

Professor Kelly: I think the limits, such as gamblers in RI who can’t bet on PC games, are appropriate and do matter.  It reduces the possibility of individuals, particularly students, making poor choices when it comes to betting on their college or hometown teams.

 

4) GoLocal Question: Despite the proliferation, there have not been any significant sport-fixing events (at least reported), so why not?

Professor Kelly: Sports betting has only been authorized in states other than Nevada since the 2018 Supreme Court decision.  Many of the states have only recently approved sports betting, so we are in the initial stages of sports betting.  I think there will be increased potential for sport-fixing events in the future. 

 

5) GoLocal Question: Any other thoughts you have?.

Professor Kelly: I have written a paper that is being considered by an academic Accounting Journal.  The title of the paper is: The Growth of Legal Sports Betting and Problem Gambling – New Challenges and Strategies to Promote the Public Interest. 

While I am reluctant to quote a paper in great detail until it has been published, in this paper, I provide three general recommendations that I think will help address the increased problem gambling situation that I discuss above. 

1. Greater support of problem gambling prevention and treatment programs

2. Appropriate oversight and control by State Gaming Regulators

3. As a longer-term measure, using high school and college financial literacy programs to address the risks associated with sports betting and other forms of gambling.

Taken together, these measures might help reduce the harm and tragic outcomes frequently associated with problem gambling, including sports betting-related problem gambling.

 

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