Sports betting cards have created a new gateway to problem gambling
Even before it became legal at the state level in 2018, the U.S. had the l argest financial loss to sports betting in the world . Since then, Americans have wagered more than half a trillion dollars on athletics. Today, sports betting and prediction markets are ubiquitous. Point-of-sale gift cards at familiar retailers have made the habit even more accessible. “It’s certainly concerning as an…
The rise of sports betting cards has introduced a new avenue for problem gambling in the United States. Even before state legalization in 2018, the U.S. suffered the largest financial loss to sports betting globally, with Americans wagering over half a trillion dollars annually. Now, these betting platforms are more accessible than ever thanks to point-of-sale gift cards at familiar retailers.
These cards make the habit more convenient for users, as they don't have the same cognitive awareness as using real cash. Cait Huble, director of public affairs at the National Council on Problem Gambling, warns that gift cards can lead to riskier decisions and make it harder to track spending. Unlike traditional payment methods, gift cards bypass personal information requirements and merchant fees, making them an attractive option for gamblers.
They also normalize sports betting, as many consumers buy gift cards as gifts. This can act as a "gateway drug" for first-time bettors, leading them to deposit more money. Young men, whose brains are still developing, are particularly at risk. Surveys show that more than one-third of boys gamble before age 18, and 12% of adolescent boys bet on sports.
The Supreme Court's 2018 decision to allow states to regulate sports betting has accelerated the industry's growth, now legal in 39 states and Washington, D.C. Gift cards were among the first products to follow suit, with DraftKings introducing the first one in December 2020. This move has made sports betting more accessible, but sportsbooks argue it makes their platforms safer by providing users with set spending limits.
However, state regulation of sports betting remains uneven, with only 10 states meeting more than 40 of the National Council on Problem Gambling's safety standards. Despite efforts to prevent underage gambling, many children still find ways to access these platforms, often through parental proxy betting. A recent NCPG survey found that 65% of adults over 21 had gambled before reaching the legal age.
While sports betting may seem like harmless fun, it can quickly become problematic for some individuals. Gambling addiction, like drug and alcohol addiction, is a dopamine-related issue, and there are far fewer residential facilities dedicated to treating gambling addiction compared to those for substance abuse. With more gift card options available, it's crucial for parents to set clear expectations and rules about gambling to prevent it from becoming a household issue.
Written by urgent.news from Fast Company's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
