Bet $5 on any event and get $200 in bonus bets. Receive a deposit match up to $500. Deposit match up to $1,000. You have likely seen at least one of these ads for online sportsbooks. Maybe youve even seen one today.
The sports gambling industry is on the rise after nearly four years of being legal in Michigan. From record profits and earnings by DraftKings and FanDuel in 2022 to companies such as ESPN creating their own sportsbooks, everyone wants to take advantage of the growing market. As the industry grows, the ads multiply. An increase in addiction and underage gambling will follow. The state of Michigan set the stage for this epidemic with bad legislation, but its not too late to change course.
New research from Northeastern University shows that advertisements for sports betting have been more effective than those for cigarettes. You could encounter an ad for Caesars Sportsbook on the side of the bus as you walk down the street. You likely saw an ad for DraftKings or FanDuel last time you spent a few hours scrolling through social media or watching television. They have become practically unavoidable. But it wasnt always like this. Before 2018, Nevada was the only state that allowed sports betting. Other states joined Nevada after the Supreme Court overturned the Sports Protection Act, with Michigan legalizing sports betting in 2019. Companies found creative ways to advertise their sites.
Many online sportsbooks offer free money for new users to place a bet on their platform. They also use promo or QR codes for promotions, enticing users to place a bet and get improved odds with better payoffs or no risk with their wager by giving away bonus bets. But when sportsbooks run these ads, they are being deceptive. Much of the free money and no-risk bets that companies such as FanDuel promise in their commercials are awarded through in-site credits that can only be redeemed if the user continues to place bets.
These advertisements aid the growing addiction and underage gambling problem that the nation is facing. Teens exposed to gambling face a higher rate of gambling addiction than adults. Children who are exposed to gambling are also four times more likely to engage in problem gambling later on. Advertisements for sports betting also become amplified online with the use of targeted ads. Individuals who showcase the potential for gambling are subject to more ads for the sportsbooks that want their business. It is with this that these companies knowingly cater to addiction-prone individuals by offering additional items to make users think theyll beat the odds.
The Michigan legislature cannot defer to the national level on this issue. The only notable attempt by the federal government to curb advertisements for sports betting came from U.S. Rep. Paul Tonko, D-N.Y., but his Betting on Our Future Act has not been passed yet. Future bills will likely meet the same fate, considering that lobbyists for the gambling industry spent more than $26 million in 2023 alone. As money is spent to promote the industry among members of the government, it is unlikely that restrictions will be put in place to slow it down. However this doesnt mean that action cannot be taken on a state level. If Congress wont stop advertisers from exploiting gambling addicts and minors, then the state of Michigan must.
Banning sports betting ads should not be a difficult decision. Much like the cigarette advertising ban in 1970, an outright ban on sports betting ads would be based on the idea that they cause more harm to users than good. Sportsbook ads are already required to present a disclaimer providing resources for gambling addicts. Harmful products such as cigarettes are banned from being advertised on TV and radio.
Michigan legislators must push aside the lobbyists and do whats right to protect their constituents from these extremely dangerous advertisements. Standing on the sideline watching as companies take advantage of people too young to gamble and those too addicted to stop is not an option. Its time for the government to step up and ban these predatory ads.
Thomas Muha is an Opinion Columnist. He writes about issues relating to social media and the internet. He can be reached at tmuha@umich.edu or on X @TJMooUM.
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