This has not happened by chance. It is a strategic and methodical effort to make sports betting seem no different than going to the grocery store to pick up a loaf of bread. The difference, however, is that gambling addiction can and will cause suffering to individuals, families and businesses. The evidence is abundant. According to the Wall Street Journal, the National Problem Gambling helpline (1-800-522-4700) received an average of more than 22,500 calls a month in 2021, up from a monthly average of 14,800 the year before. Problem gamblers carry an average of $55,000 in debt and more than 20 percent end up filing for bankruptcy.
I know the gambling industry intimately. I know how the C-suite thinks. I know what investors demand from the companies. I know how the marketing people develop strategies and promotions to get the consumer to play the games. I know because I developed those strategies. I have held positions as Senior VP of Marketing for Steve Wynn, president and COO for Donald Trump, and COO for Merv Griffin. I also owned or operated gambling operations in five U.S. States and Greece. I know the language of hooking a small-time gambler and how to land a whale, someone willing to risk tens of thousands of dollars on a single bet. But for the past 20 years, I have worked in the addiction and behavioral health field. Currently, I am the CEO of C4 Recovery Foundation, an organization that, among other things, is an advocate for individuals suffering from addiction.
To the uninitiated, this might look like the free market at work. If the activity is legal, one might ask, why shouldnt companies be allowed to attract customers by any means necessary? For the same reason, we dont let cigarette companies make smoking look fun by using cool cartoon camels. Smoking might be legal, but we know its dangerous. The same logic should apply to sports gambling.
For elected officials concerned with protecting their constituents, runaway gambling ads should be their worst nightmare. But unfortunately they are sleeping on the job. Despite studies that show a direct correlation between increased exposure to gambling advertising and problem gambling, the last time a local or state government cared about the social impact of gambling on its residents was back in 1976 when New Jersey first legalized casino gambling.
As a result of the citizens of New Jersey voting to approve casino style gambling in Atlantic City as a tool for urban development, a strict set of regulations was enacted. In 1977 the New Jersey Casino Control Act was signed into law. At the time, the state referred to legalized gambling as an experiment. Regulators and state officials were skeptical that the benefits of legal casinos would outweigh the negative. The most pressing concern was that of increased crime and the social impact gambling would have on the states residents. They were particularly concerned about increases in gambling addiction.
One of the thousands of regulations and controls the state deemed necessary was to limit advertising of the gaming products. A casino property could advertise its hotel, food offerings and entertainment, but it was forbidden to advertise the casino games themselves, including slot machines and the size of the jackpots or odds offered. That, the regulators deemed, was too dangerous to leave in the hands of the operators. Regulators were convinced that if allowed, the industry would prey on the young and those who could least afford to be spending money in a casino. Regulators knew the industry would make false and unrealistic claims about betting and would glorify the ease of winning.
The example that regulators gave was the only other legal location to gamble at the time: Nevada. In Nevada, every street in almost every town had billboards with enticements to gamble. Advertisements screaming Loosest Slots, 99% payback created a cant-lose impression. One could even play slot machines at the local grocery store. New Jersey was determined not to let the operators do to Atlantic City what they had done to Nevada. Problem gambling afflicts 6 percent of Nevada residents, according to the International Problem Gambling Center, well above the national average of just over 1 percent.
The story of New Jersey is actually a great case study comparison for what is happening with sports betting currently. New Jersey eventually relaxed many of its restrictions on advertising, as gaming expanded, and competition increased. But the state didnt surrender total control. There were still limitations and approvals needed for certain types of promotions and offerings to entice people to play the games. There was a time when every promotion required advance approval, to assure it was not misleading or unfair to the potential customer. There have been no such restrictions for sports betting.
So, what should regulators be concerned about today? Brain chemistry. The neuroscience of gambling is exactly the same as other addictive behaviors, such as drugs, alcohol, sex and eating. Like other addictive behaviors, when one gambles, the brain releases dopamine, which is a feel-good neurotransmitter that makes you feel excited. It would be logical to think this feeling only occurs when one wins, but the brain releases dopamine no matter the outcome. An individual who gets a positive response from an activity is not capable of logically deciding when he should stop betting.
The problem lies with advertising hooks. The operators of sports betting sites are not just making betting available, they are offering incentives to begin betting and to keep on betting. A good example is one site that offers a new customer $200 in free bets for making just one $5 bet.
Why does this make good business sense? The answer goes right back to brain chemistry. The operators know the more bets an individual places, the more dopamine is being released in the brain. So instead of feeling good for one single bet, they are assuring that the player is going to get several more feel-good jolts, making it very likely that the player will crave more after they have exhausted the $200 of free play.
Back in the early days of Atlantic City, every casino gave free cash to people who rode buses on day trips to the city. You could get $50 for simply showing up. The casino operators knew that most of the $50 would be deposited in the slot machines in the first hour after they arrived. With five more hours before the bus left for home, the customer would reach into his own pocket to keep the rush going. The only difference between the tactic the casinos used back then and what the online companies are doing now is that bettors are using their phones while sitting on their couch at home.
And like most products, the sports betting companies know that familiar pitch men and humor can appeal to various demographics, creating a sense of trust. Older bettors are bound to feel good seeing Brent Musburger encourage one to place a bet, and every 30- to 40-year-old will undoubtedly believe Drew Brees, having watched him play for the past 25 years, encouraging you to live your Bet life. And the even more troubling creation of fictional characters dressed in costumes having fun in a fantasy world, reminiscent of Camel Joe cigarette ads and his appeal to younger demographics, including underage individuals.
I am not suggesting that everyone who watches an ad for sports betting is going to become addicted to the activity. The reality is, like other forms of gambling, it is a very small percentage of individuals who become addicted. It is estimated that at least 2.5 million Americans have a severe addiction to gambling. But most experts agree the number is likely much larger.
There are no physical side effects as with alcohol or drug addiction. The first sign to an outsider that a person is suffering from a gambling addiction might be the loss of a home, divorce or even suicide.
But the easy accessibility of gambling products, accelerated by ubiquitous advertising, means that the pool of individuals susceptible to addiction has grown enormously, without adding some type of guardrail for the industry. DraftKings, currently the largest company providing sports betting services, believes there are in excess of 50 million bettors in the U.S. roughly one in seven Americans. And they admit their goal is not only to target existing bettors, but also to expand the aperture, meaning create new bettors.
At a recent conference of the American Gaming Association in New Jersey, when discussing the overwhelming frequency of betting ads, industry leaders asked their membership, How much is too much? They expressed a fear of backlash from legislators and gaming regulators. The last thing they want is anything that will make it harder to create new bettors. They also admitted that the current spending pace on advertising is so over top that it is not sustainable for the industry. It will undoubtedly drag some sports betting companies into bankruptcy.
But the industry cannot self-regulate. I know how the industry thinks: They will say that illegal betting has been around forever and its enough for them to include some warnings and toll-free numbers in their ads. Beyond that, theyll say, they have no obligation to protect the public from itself. But the gambling companies are not the ones who have to cover the social costs of an epidemic of gambling debt. This alone is reason enough for legislators to step in and provide the kind of national guardrails that New Jersey once applied.
In the business of gambling, the house always wins. They are going to make their money; it is just a matter of how many lives will be ruined in the process before they are mandated to change the way they prey on their victims. This Sunday, there will be one loser on the field but as you watch the blitz of gambling ads, think about the millions of losers off the field.
Originally posted here:
Opinion | The Ugly Truth Behind All Those Fun Gambling Ads - POLITICO
- Riverside smoke shop raided in suspected gambling and narcotics investigation - The Press-Enterprise - May 13th, 2024 [May 13th, 2024]
- Sports gambling creates a windfall, but raises questions of integrity here are three lessons from historic sports-betting ... - The Conversation... - May 13th, 2024 [May 13th, 2024]
- Casino Hubs: 5 Airports That Serve Major Centers Of The Gambling Sector - Simple Flying - May 13th, 2024 [May 13th, 2024]
- Dear Abby: Dad worries gambling boyfriend will get his hands on money he leaves his daughter - OregonLive - May 13th, 2024 [May 13th, 2024]
- Jayden Daniels, Malik Nabers cancel NFL Rookie of the Year bet - USA TODAY - May 13th, 2024 [May 13th, 2024]
- Louis Ferrari expected to plead guilty in gambling ring case - Democrat & Chronicle - May 13th, 2024 [May 13th, 2024]
- Regulator who ushered in Louisiana gambling expansion resigns, bullish on Shreveport-Bossier - Yahoo Finance - May 13th, 2024 [May 13th, 2024]
- Alabama's push to legalize gambling dies in the state Senate - Montgomery Advertiser - May 13th, 2024 [May 13th, 2024]
- Researchers reveal the double-edged-sword effect of overconfidence on gambling - Medical Xpress - May 13th, 2024 [May 13th, 2024]
- Shohei Ohtani's ex-interpreter agrees to plead guilty in $17M sports gambling scandal - NBC Los Angeles - May 13th, 2024 [May 13th, 2024]
- Gambling Scandal of Ohtani's Ex-Interpreter to Receive TV Series - Tokyo Weekender - May 13th, 2024 [May 13th, 2024]
- The rise of cryptocurrencies in online gambling - The Jerusalem Post - May 13th, 2024 [May 13th, 2024]
- Tennessee collects $7M in sports gambling taxes on $384.2M in wagers in April - The Center Square - May 13th, 2024 [May 13th, 2024]
- Key no vote on Alabama gambling bill suggests looking to next year Alabama Reflector - Alabama Reflector - May 13th, 2024 [May 13th, 2024]
- Effective Messaging Is Needed To Combat Illegal Gambling In US - PlayUSA - May 13th, 2024 [May 13th, 2024]
- Alabama legislative session adjourns with no final vote on gambling bill - Alabama legislative session adjourns with no ... - Focus Gaming News - May 13th, 2024 [May 13th, 2024]
- Transnational Crime and Southeast Asia's Gambling Underworld - World Casino Directory - May 13th, 2024 [May 13th, 2024]
- MLB Betting Predictions 5/13/24 | MLB Gambling Podcast (Ep. 480) - SGPN - May 13th, 2024 [May 13th, 2024]
- How did gambling develop into a major industry in Minnesota? - redlakenationnews.com - May 13th, 2024 [May 13th, 2024]
- Huge increase in young people 'gambling' on mortgages that expire in retirement - Yahoo News UK - May 13th, 2024 [May 13th, 2024]
- Premier League Matchday 37 Midweek (Games In Hand) Betting Picks | The EPL Show (Ep. 385) - SGPN - May 13th, 2024 [May 13th, 2024]
- Best Bet For Monday (May 13th): NBA Predictions - SGPN - May 13th, 2024 [May 13th, 2024]
- Speaker Ledbetter: 'We're going to see probably an expansion of more - 1819 News - May 13th, 2024 [May 13th, 2024]
- Gambling goes down in the Alabama Legislature again; union fight nears end; and more on Alabama Politics This Week! - Yellowhammer News - May 13th, 2024 [May 13th, 2024]
- OPINION: When it comes to illegal gamblers in casinos, dont ask, dont tell - The Nevada Independent - May 13th, 2024 [May 13th, 2024]
- This gambling tech stock might be the safest bet you'll make this year - Stockhouse Publishing - May 13th, 2024 [May 13th, 2024]
- Professional sport commissioners are fighting to preserve league integrity amid gambling scandals - The Conversation - May 13th, 2024 [May 13th, 2024]
- State Sen. Orr: Gambling push 'sucked all the oxygen out' of passing - 1819 News - May 13th, 2024 [May 13th, 2024]
- Art Rooney II gambling his reputation that change will result in Steelers success - Still Curtain - May 13th, 2024 [May 13th, 2024]
- MLB NRFI and YRFI Picks - May 13 - SGPN - May 13th, 2024 [May 13th, 2024]
- Poole Researchers Uncover Tax Costs of Gambling - Poole College of Management - May 11th, 2024 [May 11th, 2024]
- Republican Cheryl Bean says casino gambling is not in the cards for Texas - CBS News - May 11th, 2024 [May 11th, 2024]
- Local lawmakers, citizens react to the end of the Alabama gambling bill - Fox 10 News - May 11th, 2024 [May 11th, 2024]
- MLB commissioner gives update on Shohei Ohtani gambling investigation - USA TODAY - May 11th, 2024 [May 11th, 2024]
- As gambling stalemate continues, former governor has suggestions on how it can succeed next year - wvua23.com - May 11th, 2024 [May 11th, 2024]
- Better Markets Applauds CFTC's Proposed Ban on Election Gambling To Prevent Election Interference and Protect ... - Better Markets - May 11th, 2024 [May 11th, 2024]
- Advocates seeking more revenue for problem gambling in MD will have to wait - Maryland Daily Record - May 11th, 2024 [May 11th, 2024]
- West Virginia breaks state record, rakes in $20.68m of revenue in online gambling - WDTV - May 11th, 2024 [May 11th, 2024]
- New Regulations For Gambling Consumer Protection Are Here! - Latest Casino Bonuses - May 11th, 2024 [May 11th, 2024]
- After gambling standoff, Alabama lawmakers pass $9.3 billion education budget - Alabama Daily News - May 11th, 2024 [May 11th, 2024]
- MLB Betting Predictions 5/11/24 | MLB Gambling Podcast (Ep. 479) - SGPN - May 11th, 2024 [May 11th, 2024]
- Best Bet For Saturday (May 11th): UFC St. Louis Predictions - SGPN - May 11th, 2024 [May 11th, 2024]
- Governor Ivey will not call special session to readdress failed gambling bill - WIAT - CBS42.com - May 11th, 2024 [May 11th, 2024]
- Internet gambling industry expected to grow - WDTV - May 11th, 2024 [May 11th, 2024]
- Gambling constitutional amendment dies with the Senate declining to - 1819 News - May 11th, 2024 [May 11th, 2024]
- Betting on the US market; the IT infrastructure of gambling - DatacenterDynamics - May 11th, 2024 [May 11th, 2024]
- MLB's Shohei Ohtani, Interpreter's Gambling Scandal to Be Featured in New TV Series - Bleacher Report - May 11th, 2024 [May 11th, 2024]
- Alabama voters are tired of waiting for Godot gambling bill - AL.com - May 11th, 2024 [May 11th, 2024]
- MGM National Harbor gambling revenue down 10% - WTOP - May 11th, 2024 [May 11th, 2024]
- RIP GAMBLING 2024: House closes session by approving the education - 1819 News - May 11th, 2024 [May 11th, 2024]
- The End: The Money Picture Changes with Legalized Gambling - Gobbler Country - May 11th, 2024 [May 11th, 2024]
- Real Housewives Of Orange County Castmember Ryan Boyajian Reportedly Caught Up In $16M Theft And Gambling Scandal Surrounding Shohei Ohtanis Former... - May 11th, 2024 [May 11th, 2024]
- Gambling Safely: The Importance of Choosing the Righ... - HighstakesDB - May 11th, 2024 [May 11th, 2024]
- Shohei Ohtani's former interpreter, Ippei Mizuhara, agrees to plead guilty to 2 charges in gambling scandal - Yahoo Sports - May 11th, 2024 [May 11th, 2024]
- Charitable gambling to start at Hoops Brewing, will support the Duluth Curling Club - WDIO - May 11th, 2024 [May 11th, 2024]
- TV series about Ohtani ex-interpreter gambling scandal in works - The Athletic - May 11th, 2024 [May 11th, 2024]
- Sports Is Betting It All On Gambling - Defector - May 11th, 2024 [May 11th, 2024]
- MLB NRFI and YRFI Picks - May 11 - SGPN - May 11th, 2024 [May 11th, 2024]
- TV Series About Shohei Ohtani Interpreter's Gambling Scandal in Development - Sports Illustrated - May 11th, 2024 [May 11th, 2024]
- Why would I do that? Alabama Gov. Kay Ivey says special session on lottery, gambling unlikely - AL.com - May 11th, 2024 [May 11th, 2024]
- Sports betting and gambling addiction are on the rise - Dakota News Now - February 11th, 2024 [February 11th, 2024]
- Proposed Alabama gambling legislation includes lottery, casinos, sports betting - AL.com - February 11th, 2024 [February 11th, 2024]
- Super Bowl betting soars, but it's still not legal in Chiefs and 49ers home states - NPR - February 11th, 2024 [February 11th, 2024]
- Problem gambling has increased in Ohio since sports betting legalized - Hamilton Journal News - February 11th, 2024 [February 11th, 2024]
- Sports betting and gambling addiction are on the rise - KTIV Siouxland's News Channel - February 11th, 2024 [February 11th, 2024]
- Sports bets during the big game could trigger gambling addictions - 25 News Now - February 11th, 2024 [February 11th, 2024]
- Illegal gambling raid at El Patron leads to 1 arrest and 23 citations - KRIS 6 News Corpus Christi - February 11th, 2024 [February 11th, 2024]
- Experts discuss responsible gambling ahead of the Super Bowl - Spectrum News 1 - February 11th, 2024 [February 11th, 2024]
- Gambling addicts face tough test as Super Bowl 58 descends on Las Vegas and NFL cashes in - USA TODAY - February 11th, 2024 [February 11th, 2024]
- What are the NFLs gambling rules for the Super Bowl in Las Vegas? - The Athletic - February 11th, 2024 [February 11th, 2024]
- Personal Frontiers gets $45K to treat gambling addiction - Gillette News Record - February 11th, 2024 [February 11th, 2024]
- Super Bowl Gambling Grows, But Pastors Are on the Sidelines | News & Reporting - ChristianityToday.com - February 11th, 2024 [February 11th, 2024]
- Sports betting leading to increase in gambling addiction - Dayton 24/7 Now - February 11th, 2024 [February 11th, 2024]
- Betting on the Super Bowl: Impacts of sports gambling in Ohio as state's help hotline sees jump in calls - WKYC.com - February 11th, 2024 [February 11th, 2024]
- Sports gambling during the NFL Championship game will increase addiction rates - 25 News Now - February 11th, 2024 [February 11th, 2024]
- Billionaires Are Trying to Bring Casinos and Gambling to Texas - Robb Report - February 11th, 2024 [February 11th, 2024]
- Gambling becomes the first big issue of the legislative session - WBHM - February 11th, 2024 [February 11th, 2024]
- DraftKings, helplines, and the hidden toll of sports gambling - The Boston Globe - February 11th, 2024 [February 11th, 2024]
- The Super Bowl and gambling are locked in a tight and dangerous embrace - The Guardian - February 11th, 2024 [February 11th, 2024]
- Sports gambling addictions on the rise due to online betting, experts warn ahead of Super Bowl LVIII - WLS-TV - February 11th, 2024 [February 11th, 2024]