The boom in sports betting in the US is driving a wave of associated illegal activity and other related problems.
As noted in GlobalData’s new Sports Betting report, the online sports wagering industry in the US has seen explosive growth since 2018 when it was effectively legalised. Revenue is expected to hit $14.3bn by the end of 2024, according to Statista, comprising a significant proportion of the total global market, which is expected to be $45.2bn.
The US Supreme Court ruled in 2018 that the Professional and Amateur Sports Protection Act (PASPA), which restricted sports gambling in all but a few states, conflicted with the Tenth Amendment of the US Constitution. Since PASPA was overturned, gambling has been legalized in 39 states.
The result has been the opening up of huge revenues for major betting industry players in the US like BetMGM, Caesers Entertainment, DraftKings and FanDuel – the latter two having pivoted from fantasy sports – as well as state governments and sports leagues.
However, with that opportunity has come the potential for the newly legal practice to be abused.
GlobalData’s report explains: “Over the past two years dozens of professional and collegiate athletes and coaches have been suspended or fired for gambling violations … Whilst these gambling violations are taking place, the underground betting market which has existed in the US since sports have existed continues to soar, with unlicensed bookmakers offering credit and attracting some high-profile clientele who might be hoping for more anonymity.”
While sports betting can undermine the fairness and competitiveness of sports, with players, coaches or officials being tempted to manipulate the outcome of fixtures to win money, there are potential pitfalls for bettors too. The report notes the increasing prevalence of problem gambling with several statewide surveys having reflected this trend and nearly every state having seen increased demand for the treatment of gambling-related problems.
It says: “The incidence of gambling disorder is hitting an all-time high. In 2024, the National Council on Problem Gambling estimates that approximately 2.5 million adults in the US are severely addicted to gambling, and another four to six million people have mild to moderate gambling problems.
“The American Psychiatric Association and the American Medical Association recognize pathological gambling as a diagnosable mental disorder, characterized by a preoccupation with wagers, not being able to cut down or stop, gambling repeatedly beyond one’s means, borrowing money to finance the habit or chasing after losses by betting more.”
