As sports betting has become legal in 38 states across the United States, a burgeoning public health crisis has emerged, prompting warnings from experts and lawmakers alike.
The rapid expansion of legalized gambling, particularly since the 2018 Supreme Court decision to lift a federal ban on sports betting, has raised alarms about increasing rates of gambling addiction, particularly among younger demographics.
This surge has also brought reports of heightened harassment targeting athletes and sports officials, fueling calls for federal intervention to address the issue.
Jackpot Sounds’ recent discussions on Capitol Hill stated that a group of senators expressed openness to implementing federal regulations to curb the negative impacts of the gambling boom.
However, the gambling industry is already mounting a defense, arguing that state-level regulations and self-imposed industry standards are sufficient.
The Scope of the Gambling Boom
Sports betting’s rapid growth has transformed the American entertainment landscape. “I’m not against sports betting when it’s responsibly regulated,” said Dr. Sarah Mitchell, a public health advocate and recovering gambling addict who now serves as a counselor at the Center for Responsible Gaming at a prominent university.
Speaking at a recent Senate hearing, Mitchell emphasized her concerns about the unchecked proliferation of sports betting since the 2018 ruling.
“What we’re seeing is an industry that’s leveraging technology and aggressive marketing to make betting more accessible than ever, often at the expense of vulnerable individuals.”
The integration of betting platforms with sports teams, media outlets, and advanced AI-driven technologies has created a seamless, round-the-clock gambling ecosystem.
This accessibility, while profitable for the industry, is driving a rise in addiction rates, according to Mitchell and other experts.
The allure of instant bets, coupled with relentless advertising, has particularly impacted young adults, many of whom are exposed to gambling through mobile apps and sports broadcasts.
Voices from the Field
Former professional athlete Marcus Reed, who testified at the Senate hearing, described gambling addiction as “a devastating condition that doesn’t just affect the individual but ripples out to their families and communities.”
Reed stressed the need for robust support systems, including accessible counseling and treatment programs, to help those struggling with compulsive gambling behaviors.
He urged lawmakers to prioritize resources for recovery, noting that many affected individuals lack adequate support.
Adding to the conversation, Dr. Emily Carter, president of the National Association of Collegiate Athletics, highlighted the unique challenges faced by student-athletes. “College campuses are ground zero for this issue,” she said. “The normalization of sports betting puts undue pressure on young athletes, who are often targeted by bettors and face harassment when outcomes don’t align with wagers.”
Carter called for federal guidelines to protect student-athletes and ensure the integrity of collegiate sports.
The Funding Gap
One of the most glaring issues raised during the hearing was the significant underfunding of problem gambling services.
According to James Thornton, executive director of the National Alliance for Gambling Recovery, states have reaped substantial tax revenues from legalized gambling but have allocated minimal resources to address its social costs.
“For every dollar earned from gambling, states are investing less than a penny in addiction prevention and treatment,” Thornton revealed.
He contrasted this with funding for substance use disorders, which receives hundreds of times more public investment despite gambling addiction’s growing prevalence.
Thornton’s testimony underscored the need for a federal framework to ensure that states prioritize responsible gambling initiatives.
Such initiatives could include public awareness campaigns, mandatory warning labels on betting platforms, and increased funding for addiction treatment programs. Without these measures, experts warn, the public health consequences of gambling will continue to escalate.
Congressional Response
Senators from both sides of the aisle have signaled a willingness to explore federal oversight. “The evidence is clear: sports betting is having a profound impact on our society, and not all of it is positive,” said Senator Laura Bennett, who chairs the Senate Committee on Public Health.
Bennett emphasized that while state-level regulations have generated economic benefits, they have often failed to address the social harms associated with gambling.
“Responsible gambling isn’t just a catchphrase—it’s a necessity that requires consistent standards across the country,” she added.
Senator Robert Hayes, a senior member of the committee, echoed Bennett’s sentiments, noting that “too many states are prioritizing revenue over responsibility.”
He proposed the creation of a federal commission to establish uniform guidelines for sports betting, including measures to promote responsible gambling and protect vulnerable populations. Hayes suggested that such a commission could set standards for advertising, age verification, and addiction prevention programs.
Senator Elizabeth Warren has introduced two bills—the Responsible Betting Act and the Gambling Harm Reduction Act—aimed at tackling the crisis.
“We’re facing a public health emergency that’s affecting millions of Americans,” Warren stated. “These bills are a starting point to ensure that the gambling industry operates with accountability and that those struggling with addiction have access to the help they need.”
Industry Pushback
The gambling industry, represented by groups like the National Gaming Council (NGC), has resisted calls for federal regulation. In a statement following the Senate hearing, the NGC argued that the hearing overlooked the industry’s efforts to self-regulate, including the adoption of a marketing code designed to curb excessive advertising.
The group also disputed claims of widespread addiction, citing a study from one state that reported problem gambling rates of 1-2% in recent years.
However, critics argue that the industry’s data is selective and fails to account for the broader national picture.
A 2022 study from a leading research institute found that states with longer histories of legalized sports betting, such as New Jersey, reported problem gambling rates as high as 5.8%—well above the national average.
This discrepancy has fueled skepticism about the industry’s claims and strengthened the case for federal oversight.
The NGC also highlighted the absence of industry representatives at the Senate hearing, claiming they were not invited.
However, committee staffers refuted this, stating that major betting platforms, including Bet365 and Fanatics, were approached but declined to participate. “We’re open to working with the industry to craft solutions that promote responsible gambling,” said a committee spokesperson. “But their reluctance to engage in these discussions raises questions about their commitment to addressing the problem.”
A Path Forward
As the debate over federal regulation intensifies, analysts warn that the gambling industry must adapt its approach to avoid stricter oversight.
“The industry’s current strategy—denying the scale of the problem and resisting federal involvement—is unsustainable,” said gambling policy expert Rachel Nguyen. “They need to show they’re serious about responsible gambling, or they risk being regulated like the tobacco industry.”
Nguyen pointed to successful responsible gambling programs in other countries, such as mandatory spending limits and self-exclusion tools, as models for the U.S. to consider.
She also advocated for increased transparency in advertising and stricter age verification processes to protect minors from exposure to betting platforms.
For now, the sports betting industry remains a patchwork of state regulations, with varying degrees of oversight and enforcement.
As the federal government weighs its role, the stakes are high for both the industry and the millions of Americans affected by gambling. Lawmakers face the challenge of balancing economic interests with the urgent need to address a growing public health crisis.
The push for federal regulation represents a critical opportunity to establish a framework that prioritizes responsible gambling and protects vulnerable populations.
As Senator Bennett put it, “This isn’t about banning betting—it’s about ensuring that it’s done in a way that doesn’t destroy lives.” With bipartisan support and growing public awareness, the coming months could mark a turning point in how America addresses its gambling boom.