Lawmakers call for federal investigation into gambling disorder

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Clinkz has had some changes after being an OP pick in Dota 2. Image Credit: Valve

U.S. Representatives Dan Goldman (NY-10) and Blake Moore (UT-01) introduced the Gambling Disorder Health Study Act on Wednesday. The legislation calls for a comprehensive, multi-year investigation into the causes, development, and long-term effects of gambling disorder. 

“Gambling addiction is a growing public health crisis, especially for young men, and the federal government needs to start treating it as such,” said Rep. Goldman in a press release

“This bipartisan legislation is a commonsense first step to help us understand the full implications of the apps and sites that have made gambling readily accessible 24/7; to identify those most at risk of addiction; and to develop strategies to intervene and treat them, just as we do with other forms of addiction. Congress must take a more active role in fighting gambling addiction and pass this bill.”

Surge In Gambling Creating Problems, Claim Lawmakers

Goldman and Moore said the legalization of sports betting has led to a surge in gambling problems. 

Before the PASPA ruling in 2018 paved the way for states to launch sports betting, Americans wagered $4.7 billion a year on sports. That figure has increased each year and reached over $220 billion, according to the press release. 

Ohio’s Governor Mike DeWine said last week that legalizing sports betting was his biggest mistake. He cited the spending of gambling companies on marketing, which has led to more Ohioans gambling and losing money. 

The proposed study would analyze the contributing factors to and policy implications of gambling disorder, including but not limited to sports betting legalization, media exposure, and other social dynamics.

It seeks 10% of federal excise tax revenue on state-authorized wagers to fund the study for up to 3 years. The Kennedy Forum, a nonprofit organization that works at improving mental health care offered its support for the bill. 

“The Kennedy Forum supports this bill so we can better understand the scope and scale of the issue and help curb the emerging wave of addictions for profit that rely on shame, isolation, and silence to proliferate in our culture,” said Lauren Finke, Senior Director of Policy at The Kennedy Forum.

Prediction Markets Adding To Problem

The lawmakers said that 27% of Americans aged 18 to 49 claim to have an active account with an online sportsbook. An even higher number (33%) have used an online event-based prediction market to place a bet on a sports event.

The availability of sports markets on platforms such as Kalshi and Polymarket has spread rapidly. The operators now offer contracts on almost all esports events, even in states where sports betting has not been legalized. 

That is being challenged in many states, and Nevada this week ruled that Polymarket is prohibited from operating in the state. 

“We are in a new age of gambling addiction as sports betting and prediction markets have proliferated into every aspect of life. Lawmakers and all Americans need to take a deeper look into the causes and effects of gambling addiction so we can best craft real solutions. This bill will go a long way in helping us address this crisis,” said Rep. Moore.

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