Study says legalizing sports gambling led to a jump in problem gambling

New research indicates that irresponsible gambling may have increased as a result of mass gambling legalizationProblem gamblers of lower income may be more severely affected by the measureLand-based casinos have remained unscathed by the legalization of mobile gambling

A study by the University of Maryland, the SMU Cox School of Business, and the UC San Diego Rady School of Management has found a new link between the legalization of sports gambling in the United States and a rise in irresponsible gambling.

Gambling legalization is also tied to increased spending, higher levels of harm study says

UMD Smith Associate Professor of Marketing Daneil McCarthy and the study’s co-authors, SMU'sWayne J. Taylor and UCSD's Kenneth C. Wilbur, have examined the period since the Supreme Court repealed the Professional and Amateur Sports Protection Act of 2018, which essentially banned sports betting on a federal level.

"Legalization delivers real fiscal benefits, but it also expands the pool of people betting beyond their means. Policymakers should weigh the extra tax dollars against the social costs and consider safeguards like income-based wager limits," said McCarthy

With the overturning of the law, each state, as well as the District of Columbia, has been allowed to debate locally if the jurisdiction wants to support sports wagering. Many have, with more than 40 legalized sports gambling markets, which the authors of the new research conclude has led to a jump in irresponsible gambling.

The authors used a sample of more than 700,00 gamblers across 11 states in the country to analyze behavior among gamblers. According to the study, the biggest jump has been in increased spending, by 369% according to the authors, with a purported increase in what they define as "irresponsible gambling," which jumped by another 372%.

The study similarly acknowledged some of the good that has come out of gambling, such as the tax contributions, which are calculated at $0.78 per capita. The research also bears out many of the claims and suspicions that were previously brought up by other researchers.

Physical casinos remain unscathed by mobile betting introduction

For example, people who have lower incomes experience the negative impact of gambling-related harm more than their better-off peers. Interestingly, the research also indicates that there has been no actual harm done to the operation of physical casinos, a long-feared outcome of the mass legalization of sports gambling and particularly mobile gambling.

While the study itself won’t change the minds of entrenched states that do not wish to move forward with mobile sports betting per se, it adds to the body of evidence that this fear may not be entirely justified.

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