Congress is warning of a rapidly unfolding public health crisis, with “all available evidence” pointing to growing problems surrounding America’s gambling boom.
Sports betting, which is now legal in 38 states, has exploded across the United States over the past six years. Activists and clinicians say levels of addiction are rising amid this surge, and young people are among those affected. Athletes and sports officials say harassment is also on the rise.
On Capitol Hill this week, several senators suggested they might support a federal crackdown. But the industry has already begun to push back.
“Popular” sports betting
“I’m not against sports betting,” said Harry Levant, a gambling addiction counselor and director of gambling policy at Northeastern University School of Law’s Institute for Public Health Advocacy and a recovering gambling addict himself. said. “In fact, I support properly regulating and legalizing sports gambling.”
But Levant, speaking before the Senate Judiciary Committee on Tuesday, said he “vehemently disagrees with and is deeply concerned by what has happened since 2018, when the Supreme Court overturned a decades-old federal ban on legalizing sports betting.” ”, he emphasized.
Levant said a complex network of companies, including betting giants, sports teams and media companies, are now working together to “deliver online gambling at the speed of light and ensure access to sports gambling activities never stops.” “I’m here.” “This new AI-powered business model will relentlessly increase gambling addiction and gambling-related harm.”
Former NFL player Johnson Bademosi also sounded the alarm. “Gambling addiction is a serious disease that can destroy not only the gambler’s life, but also the addict’s people and their families,” he told the hearing. Those who are suffering “must be given adequate resources and support to recover,” Bademosi added.
Charlie Baker, a former Massachusetts governor and current president of the National Collegiate Athletic Association, said that in order to protect sports and students “from the pervasive dangers of sports gambling,” lawmakers are “taking significant precautions against gambling on college campuses.” need to be paid.”
A 2018 Supreme Court ruling allows states to decide whether to allow the practice and how it should be regulated. Although legalization has increased tax revenue for dozens of states, “many state governments have never invested in problem gambling programs or broader public health infrastructure,” said Keith, executive director of the National Council on Problem Gambling. Mr. White said.
As of last year, “for every $1 states generated from commercial gambling, 0.0009 cents was invested in problem gambling services,” according to White’s written testimony. “Substance use disorders are seven times more common than gambling disorders in the United States, yet substance use disorders receive 338 times more public funding than gambling disorders.”
The misconception that there are “too many states”
Some senators also seem to be paying attention.
“It is important that Congress examines the impact of sports betting on America and determines how the industry should be regulated going forward,” said Democratic Sen. Dick Durbin, chairman of the Judiciary Committee. “In many cases, ‘gambling’ is not done responsibly,” he added.
Thom Tillis, the commission’s top Republican, also expressed support for federal regulation. “Too many states are getting it wrong,” he said, adding that he was “very open” to the idea of a commission creating “rules of the road” for each state to follow legalized gambling. . “The federal government will also need to play a role.”
Democrat Richard Blumenthal has already pushed two bills aimed at addressing concerns about problem gambling: the Safe Bet Act and the Grit Act. “We are in the midst of a sports betting boom, and this is one of the most serious public health issues today,” he said. “For millions of Americans with severe gambling problems, it is the source of their addiction.”
NCPG’s Mr White was relieved to hear that story. He said after the hearing that gambling is “no longer a state-by-state issue.” “Both the witnesses and the senators seemed comfortable with the idea of a role for the federal government. Of course, the important question is exactly what that role should be.”
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The gambling industry is certainly not happy about federal involvement. A memo distributed after the hearing by the American Gaming Association (AGA), a lobbying group, complained that the group had “excluded industry sources” and highlighted “myths.”
The Judiciary Committee said major companies in the industry will not attend. “We reached out to multiple gambling platforms and they were unwilling to send witnesses to the hearing,” said Josh Solve, a spokesperson for the city of Durbin. “If there are gambling operators who are serious about much-needed federal reforms to protect our sport and those suffering from gambling addiction, we welcome their participation as we move forward. ”
FanDuel and DraftKings were among those contacted about testifying at the hearing, according to people familiar with the matter. Both companies declined to comment. Industry officials denied being invited.
The hearing also featured David Reback, a former director of the New Jersey Division of Gaming Enforcement who recently became a consultant to the AGA. Unlike the other panelists, Levak voiced opposition to federal crackdowns on gambling. “There is no reason to think that the federal government is better suited than individual states to balance the tradeoffs involved in hundreds of regulatory decisions,” he said.
In its memo, the AGA argued that despite the increase in legalized gambling, the prevalence of problem gambling “remains at approximately 1-2%.” This statistic comes from a report on one state, Massachusetts, which found that problem gambling affected 2% of the population in 2013 and 1.4% in 2021. It turns out. However, sports betting was only marginal. legalized in Massachusetts In 2022.
New Jersey, where Mr. Levak served as a senior state official, was at the forefront of legalizing sports betting. According to one report, the rate of high-risk problem gambling in the state in 2021 was 5.6%. report That’s down from 6.3% in 2017, but three times the national average, according to the study prepared by researchers at Rutgers University Gambling Research Center.
The sports betting industry is currently regulated at the state level, and the industry itself is regulated, introducing measures such as marketing codes to address concerns about the onslaught of advertising that has accompanied the rapid rise of sports betting. are. But some policymakers in Washington are beginning to question whether this is enough.
Denying a “myopic” industry
Gambling lobbyists are stealing the show to claim that their market doesn’t need federal regulations or guardrails. Some observers believe a new strategy is needed.
“The industry needs a better defense against federal oversight than what the government is offering. It looks like you (Congress) are going to do a worse job than we do,” Gamble said. said Steve Ruddock, industry analyst and consultant. I wrote on social media. “I don’t know if people know this, but it takes a big ego to run for Congress, and that kind of argument won’t sit well with you.”
Sports betting operators fear federal intervention could turn a nascent legal market into a highly restricted market. They don’t want gambling to be subject to the same strict and comprehensive regulation as smoking.
“If this goes wrong for the industry, it could end up being treated like tobacco,” said problem gambling lobbyist Brianne Doura Shawol. “Their desire to deny that harm occurs is too short-sighted.”
