How Did Sports Betting Become Legal in the Us?
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The article discusses how sports betting became legal in the US, sparking a heated debate among commenters about the consequences of legalization and the need for regulation.
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If I had my way, everyone who has ever made a "why make it illegal/regulate it? People will just do it anyway."-style argument would be forced under penalty of law to write the above quote 300 times on a chalkboard.
He could not advertise. He could not send you push notifications or run AB tests on millions of users.
"Estimates of the scope of illegal sports betting in the United States range anywhere from $80 billion to $380 billion annually, making sports betting the most widespread and popular form of gambling in America."
which seems surprising even at the low end.
similarly from https://www.americangaming.org/new-aga-report-shows-american... in 2022
"AGA’s report estimates that Americans wager $63.8 billion with illegal bookies and offshore sites at a cost of $3.8 billion in gaming revenue and $700 million in state taxes. With Americans projected to place $100 billion in legal sports bets this year, these findings imply that illegal sportsbook operators are capturing nearly 40 percent of the U.S. sports betting market."
I think what would be more interesting to me is estimates on the unique number of citizens betting. Is it up? If so, how appreciably?
They are a harm to others. People with gambling addictions don't just hurt themselves - they hurt families, friends, and also the society at large as they come to be dependent on the safety net for substeance.
I think you dont need to make it illegal to keep it in check. A simple rule saying: IF a person spends more than 20% of the overall W2 or 1099 income on gambling, then the gambling house is liable for every 95 cents of every subsequent dollar paid out. We transfer liability for selling alcohol to irresponsible bartenders - casinos should also take the heat for the malaise they inflict.
You'd see very quickly how things get real.
Simply put, if a gambler shows up in court with a W2 and payouts to a gambling house, they get summary judgement against the house.
This works well because once codified ("no gambler shall owe more than 20% of their annual income to any gambling house, individually or in the aggregate") it triggers an unrecorded liability on the gambling house's clientele. In other words, the stock becomes radioactive , unless the gambling house has strong controls around client onboarding and monitoring. Auditors are never going to sign off on financials that have a huge liability unless it is proven there are strict controls in place to not let degenerate gambling continue.
The same principle could be applied to universities as well.
Basically, you have to shift the risk to the party abusing the system (in this case, not the system, but the addiction).
I don't personally agree with gambling, as I just don't understand how someone could possibly enjoy it; but, I sure as fuck believe that every human being can spend their hard-earned money however they see fit.
Churches, retailers, bars, strip clubs, restaurants, etc. All of these allow people to spend their hard-earned money in questionable ways and many folks go WAY overboard w/them. But, my guess is, you don't really want to regulate all of those; just the ones you disagree with.
Why? Do these people not live in society next to you? Don’t you subsidize their healthcare, the education of their kids, etc?
> But, my guess is, you don't really want to regulate all of those; just the ones you disagree with.
The only one of those I wouldn’t regulate is churches, and that’s because study after study shows that people who participate in organized religion are happier and healthier, and communities with healthy churches do better in social metrics than ones that don’t. E.g. Mormons live 5-10 years longer than white Americans generally: https://www.deseret.com/2010/4/13/20375744/ucla-study-proves.... (I suspect New England Congregationalists have similarly superlative outcomes, but I don’t have the data.) Imagine how much lower our healthcare costs would be if you could take the social magic Mormons do and apply it to the whole country.
Maybe we don’t have to ban coffee. But is the alternative really for society to suffer the negative externalities of every individual choice with no power to regulate those choices?
https://iea.org.uk/wp-content/uploads/2017/08/Smoking-and-th...
For example, the study above shows that smokers *are actually a net benefit* to the government's bottom line since they pay taxes throughout their lifetime on tobacco and then they die faster (therefore spending less money in the form of healthcare/ aged pensions).
I'm really not comfortable with the idea that we should only permit activities that are purely harmless. 30-50 people die each year in skiing accidents in the US alone. Those people have families too. Where do you want to draw the line?
Gambling and Social media do exactly that. In fact social media has purposely adopted the exact same patterns of gambling to make it so that "scrolling" IS gambling, but it's time and enjoyment instead of money. They don't just show you what you want all the time, they induce FOMO by only occasionally offering rewarding content, which results in compulsive usage.
I don't like these modern temperance movements. Leave people alone.
Have you noticed how things are going? Do you genuinely believe these are non-factors?
John Adams said: “Our Constitution was made only for a moral and religious People. It is wholly inadequate to the government of any other.” He was making an important point that has nothing to do with theology. Society can have extensive individual freedoms when people are socialized to mostly to make the right decisions without government coercion. If we loosen the social guardrails, as we have done, more government coercion becomes necessary to suppress anti-social behavior.
Separately from that, I don't think that the original US constitution - you know, the document that explicitly protected the interests of slave owners, i.e. the vilest kind of filth - could be meaningfully said to be made for "a moral and religious People". Or, if we take that at face value, then that tells us volumes about the value of said morals and said religion, and it's deeply negative.
Not quite. It means, individuals have to have the freedom to make their own choices, because nobody can be trusted to know what the "right" choices are and dictate them to others.
By "a moral and religious People", John Adams did not mean that every one of those people must agree on exactly what the right thing to do is. He meant that the people have to have the concept of right and wrong as things they are supposed to discern, things outside themselves that aren't dictated by any other authority (or at least not any human one), and to understand that they have a duty to do their best to make the right choices. The problem with our society today is that that concept of "right" has been discarded; instead there is a different concept of "right" that revolves around adherence to whatever political ideology is favored by those in power.
> more government coercion becomes necessary to suppress anti-social behavior
The problem is that the government can't be trusted to do that job. That's what "freedom" means in the American context. That's why the US Constitution doesn't give the Federal government the power to do it. The fact that our government does it anyway is a bug, not a feature.
I certainly enjoy mainstream social media platforms but find it frustrating that the company is motivated to show me what I don't want to see and make it difficult to find the content I prefer. Simultaneously this is done while creating walled gardens to limit open access to information that is only the property of the platform by virtue of anti-competitive user agreements.
First and for most user generated content should be openly accessible.
So now what if my hobby is betting on sports? I don't see a difference.
their activity funds it - where taxed - and their activity doesn't strain it either
Also, because their gambling asses smart wifes divorced get lonely and somehow it becomes contribution to male loneliness epidemic and then we have right wing using them as argument to stop "no fault divorce" and restrict women so they have no choice.
We as a society should get to decide what "freedoms" and what "constraints" make for a better society as a whole, don't we?
It seems totally unbalanced, predatory, like an overt scam.
I would feel a lot better about the law permitting sports gambling if it also required companies to accept bets from all gamblers. It likely would reduce margins and feel a lot riskier to the companies. Like with poker… you can’t sit down at the table hoping to win big without also risking to lose big.
Having a high skill player at a table/bookie breaks this cycle. People start losing faster, and end up playing less. The high skill player continuously drains money from the table, money that would have been bet again in a later bet if it had gone to an average player.
Can't have that.
as initiation to your startup accelerator?
Then FanDuel and DraftKings arrived with a lot of investor capital, and had the money and power to push through the legalization.
It was never morals that kept gambling from being legalized elsewhere, it was protectionism.
DFS, in particular, was and is very legitimately a game of skill. (In fact, looking at it from an Elo perspective and from the perspective of "Who should win?", it's more of a game of skill than the sports themselves!) There was absolutely no reason for it to be made illegal, other than to protect the tribal gaming interests in California and Florida. They pushed back so hard and with such little justification that the tide really, really turned against them in a much more broad way than they ever anticipated.
The ironic thing is, Matt King at FD and Jason Robins at DK probably would have been perfectly happy if the outcome had been that they be allowed to merge and that DFS is legalized and regulated. Instead Robins is a billionaire and Flutter made the best corporate acquisition of the 2010s.
A game that is both skill and gambling (of which there are many) still generally is regulated as gambling.
Chess wouldn't be as addictive anyway. You need a bit more luck ingrained in the game mechanics to trigger the addiction mechanisms. In games of skill like poker people get deluded all the time because they see lucky wins of their opponents and unlucky losses of their own. People are very bad at making judgements about probability so a lot of them get deluded into thinking "if only unlikely X didn't happen 3 times recently I would be ahead".
This happens in both poker and sports betting. In both games you can always pick some unlucky events (ball hit the post, referee gave an unjustified penalty, the only card falling on the river) and point to them to say "if only" while missing all the small lucky events on your side.
With games of skill that also have a strong luck element (poker, fantasy sports, betting horses, etc.) you can fool yourself very easily into thinking the odds are in your favor when they are not. If you won you thought it was because you played better, if you lost you got unlucky, and if you don’t track it (even many professional players don’t) you may have a hard time even knowing after a long sample size where you stood.
Gambling relies on the ability of anyone to get lucky and win on any given day mechanisms rely on inconsistent rewards.
But even on top of that, the coverage of this issue is severely lacking. There were already many online sports books "legally" HQ'd in the Caribbean or other offshore locales. They were pointed to as proof of how much money could be made and money won. That's the story. We allowed greed to addict millions of young men on sports gambling because we lost our spines in this country.
If DFS is legal roulette should be legal as well because it has fewer negative consequences for society.
I know it's popular narrative among pro gamblers that games of skill deserve a different (better) treatment but it's just self serving nonsense in my view (I've spent most of my adult life in a gambling world as both a pro player and software developer).
Sports betting has significant negative impacts. For every $1 a household spent on betting, it reduced savings by $2. https://insight.kellogg.northwestern.edu/article/online-spor.... This impacts not just individuals, but spouses and children who don’t “consent” to the negative impacts this has on their lives.
And it really saddens me to see American children being introduced to gambling at a younger and younger age via things like loot boxes, blind boxes, and trading card game speculation.
I wonder if that makes them more or less vulnerable later in life. Are lootboxes a vaccine or a devastating childhood infection?
I find it telling the the people that have this opinion always seem to believe that they are going to be the arbiters of how other people should live, and that they themselves are without the vices that they would regulate.
And I even agree on the betting bit: it's bad. But then again, so is voting for criminals and yet, we allow it and arguably that causes a lot more damage than betting.
I’ve been blessed not to have addictions to substances or gambling. But I’m a snacker and could afford to lose 25 pounds. (Cardiovascular issues present in south asians at a lower BMI than for others, apparently.) I’d love social reinforcement to help with weight management, e.g. portion sizes when eating out.
As for portion sizes: my simple rule is that if I did not put it on the plate myself I don't necessarily have to eat it and peer pressure be damned.
Did you ask OP if they think that, or are you just assuming that?
https://www.abc.net.au/news/2025-08-04/illegal-tobacco-is-a-...
On the other hand, sports betting and advertising for it are absolutely rampant.
Also, these policies usually fail in getting existing users to quit, but they succeed in deterring prospective users. The idea that these policies are "not going very well" is an incredibly narrow-minded and short-sighted perspective.
While the article you linked points out that illicit tobacco sales make up a large percentage of the market, it’s a much smaller market. You might as well tell us that most guns sold in Japan are illegal, and therefore Japan has a bigger problem with guns than America.
I'm no fan of tobacco, I think taxing it heavily is good, and Australia's policies were (IMHO) working well until quite recently. But, as the article explains at length, the price difference is now so extreme and the legal risk of illegal sales so low that drug dealers are muscling in and we're getting drug dealer competition tactics as a result.
Australia doesn't let you bring a bottle of water onto planes going into their country, even if you bought it inside the airport. Allowing people to bring in drugs like tobacco but strictly forbidding a 1 dollar bottle of water is a problem with enforcement. If tobacco were treated the same way dangerous, addictive substances like H2O are, things might work better.
I think the same thing applies to most vices. Any friction in engaging in the vice is a moderating influence. Someone is more likely to get dangerously drunk while drinking at home than at a bar in which you have to order every drink from a bartender. It was likely more difficult to fall into a porn addiction if you needed to look another human in the eyes when you rented that dirty VHS tape. It's easier to overeat if you're having the food delivered to your home than if you order every item from a waiter in a restaurant. When we all know an activity should be done in moderation, making it as easy to engage in that behavior as possible is probably a bad idea.
I would also spend way more money on gambling when at a location to do so. The desire to bet on sports on my phone is really low because it's boring so I won't do more than enough to make a game interesting.
When I used to have to make an effort to get things that are now legal but previously illegal I would be much more compelled to make that effort to avoid having to do it in the future when I wanted the thing. Which inevitably would lead to more doing of the thing. Now that I know I can get it anytime I don't actually care about it.
There are fake games, and even leagues, made specifically for people to bet on. To me there is no appeal, but I'd expect to someone gamblign there must be some appeal. See this article, there have been cases in cricket, but I know less about that game. https://josimarfootball.com/2024/10/21/childs-play/
I tend to agree with the parent that friction is useful for many 'sin activities' I might extend this to most drive through restaurants. For gambling having to go to a casino, a racetrack, or a bookkeeper who isn't legal all act as points where users drop out of the process. Having it on your phone is always available and the path of a user can be modified to get them to spend/bet more.
Some other good examples (I think) are simply watching things. It doesn't need to be porn, think about how many people are chronically watching mindless trash content for hours at a time because we've made constant scrolling an immersive experience available all the time everywhere. I know I am. We've gone so far as to even eliminate the necessity to decide what to watch, the media companies have automated the process of turning what used to be customers into their products and delegated the friction to the telecom companies. When you think about your phone bill, really we should be paying basically nothing for it (and in some places it's nearly that cheap), but in expensive places we're paying like $80/month to engage with 5 free addictions that only take value away from our lives. They're charging us to sell ourselves to each other.
Weed: I agree that it should be legal, but how many new customers have been created since a store opened in every available vacant commercial space within a legal jurisdiction?
The pursuits of car and oil companies have literally re-shaped the built environment in the name of making it as easy as possible to be sedentary when you'd otherwise have to move—most significantly so in places that missed out on dense urbanization in the pre-industrial period—and now all we know how to do is get in our big SUV and drive to Costco, then to McDonalds, because otherwise there's a near-zero likelihood you have access to more economical healthy choices that are persuasively close to not drive to. Most North American cities effectively made it illegal to do anything else but sprawl, and concentrated as much wealth and power as possible in the hands of mega-franchise companies and private equity while we watched our wetlands get paved over for parking lots (we unironically should have listened to Joni Mitchell on this one). Good luck opening up a new corner store, those only go on the main avenues and shockingly someone owns that land already.
Credit Cards: Obvious one, but if you obscure how much you've spent and eliminate the requirement to keep track of what's available to you, maybe even add a nice little ding sound when you tap your phone, you're going to buy a hell of a lot more.
Biggest scam of all time.
These new sports books are operating purely to enrich the owners of the platform. Ban 'em.
I've been in an online community where some users do a group buy for certain lottos when the prize is big enough. Sending $2 by paypal/venmo is easier and lower friction that going to one of the stores near me where I can but a ticket myself. I still think it's kinda dumb, but I do plenty of dumb things and I buy one infrequently enough to be ok with it.
Problem is, state funding for those public concerns are often reduced by the same (or more) amount lottery revenue generates. For example, Florida pitched their state lottery as funding education (amongst other "who could be against this?" programs), yet failed to inform voters that existing funding would ultimately be reduced in a compensatory fashion.
Here's a list of cricketers that have been banned over the years. Many were even the captain of their respective team:
https://en.wikipedia.org/wiki/List_of_cricketers_banned_for_...
The list also doesn't include players like Ricky Ponting, Mark Waugh and Shane Warne who got away with a fine from the ACB.
Well, sports betting could have the same mechanism, where you are only allowed to bet an amount proportional to your line of credit.
If the banks don't trust you to spend over that limit and honour your debt, why should betting houses be any different?
If we truly believe that sports betting (at this scale, at our fingertips on our phones, unlimited) is bad... trying to band-aid it won't work.
Thus things might have a chance that otherwise would have a hard time passing legislation simply because they are restrictive for the upper class.
“Banks are funded with deposits” = “Deposits are liabilities for banks”
——
Yes, deposits in current accounts are *liabilities* from a bank's point of view. This may seem counterintuitive, as we typically think of deposits as the bank's money. However, in accounting terms, a liability is something a business owes to others.
### The Bank Owes You Your Money
When you deposit money into a current account, you are essentially lending that money to the bank. The bank has an obligation to return these funds to you whenever you demand them, whether by withdrawing cash from an ATM, writing a check, or making an electronic payment. This obligation to repay the depositor is what makes the deposit a liability for the bank.
### How it Works on a Bank's Balance Sheet
A bank's financial health is represented by its balance sheet, which must always balance. The basic accounting equation is:
$$Assets = Liabilities + Equity$$
Here's a simplified breakdown of how your deposit fits in:
* *Liabilities:* Your current account deposit is recorded on the liability side of the bank's balance sheet. It represents a debt the bank owes to you. Other liabilities for a bank include savings account deposits, certificates of deposit (CDs), and money borrowed from other financial institutions.
* *Assets:* When you deposit cash, the bank's cash holdings (an asset) increase. The bank then uses the funds from your deposit to generate income by making loans to other customers or by investing in securities. These loans and investments are considered assets for the bank because they represent money that is owed to the bank.
*In essence, the bank takes on a liability (your deposit) and creates an asset (a loan or investment).* The bank's profit comes from the difference between the interest it earns on its assets (e.g., the interest rate on a loan) and the interest it pays on its liabilities (e.g., the interest paid on a savings account, though current accounts often have very low or no interest).
Therefore, from the bank's perspective, the money you have in your current account is not its own money but rather a debt it must be prepared to repay at any time.
So if there aren't any natural incentives you just make up artificial ones. One such mechanism is regulation, just like with the tobacco industry.
One of them is gambling.
The other is modern marketing.
Combined, they represent a substantial harm.
With nearly all of our social agency - which in our society means money - already in the possession of a tiny fraction of the country, with the bottom half of the country having approximately zero savings and spending at least as much as they have income? Any revenue gleaned from their dysfunctional attitude becomes a collective hardship, money that needs to be replaced by some form of subsidy to maintain our quality of life and avoid spillover problems like property crime.
we literally see an anti government protest around the world in past few month from UK to Nepal to Australia
because they got divided between left vs right political spectrum that ignore massive issue that is happening right now
if there is a protest from other country, it labelled as anti government protest but if there are protest on US, it called an left/right protest
My charitable interpretation is that it's a way for fans to feel more invested in the game. When their team wins they also do.
The reason why there's so much fixation on sport betting in particular is partly because it is doubly addictive (because emotions tend to run high around sports, team sports especially, so even people who might not have bet in a casino might be betting on a game by their favorite team, for example). And partly because, on top of all the other problems with gambling, it creates perverse incentives for the teams to fix games.
Because, like the article said, 97% of users lose money sports betting.
It's like the lottery (which I also didn't like the states legalizing). You're essentially taxing poor / uneducated people but with sports betting that tax is a profit to some random businessmen.
It's just like a drug. Just because some people like it, doesn't mean we should allow people to monetize the addiction to it.
I remember being astonished walking around London for the first time 15 years ago after getting off the plane from the US and seeing a place called "Ladbrokes" that really would leave lads broke.
> I'm anti gambling personally which is part of why i hate crypto but i don't get why sports betting in particular is so objectionable.
There's a direct onramp from something very popular (sports) into sitting on your couch and losing all your money on your phone. It also makes sports worse for everyone who doesn't gamble on it too.
In 1992, when the innocuously named “Proposition A” finally passed, these monstrous “riverboat casinos” were built all along the Missouri riverfront.
He said before he died, “it’s funny, once it passed, there weren’t any more votes on it”.
And that’s how this stuff becomes legal.
It's probably included because some states require it and it's easy to just make one commercial. For example, Virginia 11VAC5-70-240.B "Advertising, marketing, and promotional materials shall include a responsible gaming message, which includes, at a minimum, a director-approved problem gambling helpline number and an assistance and prevention message, except as otherwise permitted by the director for certain mediums such as social media messages. "
In other rich states, you can do everything with a little bit of money, just pricy. In poor states, they're often theocratic and tightly regulate things but you can still do everything with a little bit of money.
Virginia on the other hand, wealthy various economic drivers and still regulate everything fun out of existence in the least entertaining way possible. Winning the prize of worst state in the union.
Many developed countries are struggling with birth rates for example. Should that be regulated? It is harming countries much more than gambling could ever have. The whole right-wing resurgence happening across western democracies is a direct consequence of lower birth rates demanding offshoring and immigration.
There is just too much money to be made in that space. It's sickening.
And with apps on phones, it's 24/7 for some people. They get sucked in and gamed like babies bums in talc powder.
And it started with Twitch now. Kids get addicted watching these rigged players and believe they too can get rich doing it. It's a form of opioid legalised because the government gets the kick back.
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