Reducing the High Stakes of Online Sports Gambling

A statute that has been invalidated has not been repealed. If Murphy is rightly decided, why does your proposed federal legislation not have Tenth Amendment problems? Why are the effects on the national economy justifying federal legislation not sufficient to control sports betting entirely under the Commerce Clause if Congress wishes to do so? Mentioning Murphy seems inadequate; there is more that we need to understand, and you're the one with the burden of explaining.

Online sports gambling has been booming over the last few years. With the 2018 Supreme Court decision in Murphy v. National Collegiate Athletic Association, the Professional and Amateur Sports Protection Act of 1992 was repealed. PASPA essentially outlawed sports betting throughout the United States. With the Murphy case, the Court ruled that PASPA conflicts with the Tenth Amendment and was overturned. Since then, states have been the ability to legalize and regulate online sports gambling. The issue with this is that leaving the legalization and regulation of online gambling to states creates varying levels of standards between states. Some states may have more lax restrictions than others while some states may not even legalize it. Online sports betting has created billions in revenue for sports books and thus generated billions in tax revenues for state governments. Likewise, this amount of business has led to an increase in jobs for people in the legalized states. The issues lie in the mass spread of online sports gambling throughout the general public because it has the potential to cause addiction, financial difficulties, and psychological issues. To mitigate these issues nationwide federal regulation should be implemented to control and balance online sports gambling.

Online sports gambling platforms have features that can easily lead to addiction. The easy to use and intuitive interfaces allow for constant use. The instant gratification of online bets can impact addictive tendencies. Research indicates that the risk of addiction is higher in online gamblers than those who gamble in person. The American Psychological Association has stated concerns such as the difficulty in controlling gambling habits and the potential for addiction development due to the immersive nature of online gambling platforms. The nature of these platforms can make it seem online bets have low risk and low investment involved. This can lead to people having misconceptions about the ease of winning and the seriousness of losses. The online format also removes the realness of using cash, making losses feel less tangible. Having monetary gains and losses occur through the internet can lead to increased gambling since it removes the psychological barriers that gambling with physical money might cause.

Once an individual succumbs to the potential of gambling addiction that online sports betting induces, the social and family consequences can be severe. Gambling addiction frequently leads to job loss, debt, bankruptcy, crime, and suicide. These effects do not only impact individuals but also their families and communities. The ease of access and the ability to gamble secretly online worsen these issues by not allowing for symptoms to be known to others until the problems become severe. Also, online gambling platforms have not effectively enforced age restrictions which leads to more underage gambling. The American Gaming Association reports inconsistent enforcement across states with some states reporting much higher rates of underage gambling violations. Having young people develop gambling addictions through easily accessible platforms on their phone can lead to ill effects throughout other aspects of their lives. Likewise, the effects of gambling addiction extend beyond individuals. Having someone in the household dealing with gambling addiction can lead to families experience significant strain and thus can result in divorce, domestic violence, and severe mental health issues amongst family members. Communities where online gambling is prevalent may also face increased crime rates and social welfare use due to related unemployment and debt.

While states have seen an increase in tax revenue from legalized online gambling, the economic costs can be significant. Gambling addiction can lead to reduced work productivity, job losses, and increased use of social welfare programs. The National Council on Problem Gambling suggests that the social costs of gambling such as job loss, bankruptcy, and healthcare expenses can outweigh the financial benefits derived from tax revenue. Around twenty years before even the legalization of online sports betting, The National Gambling Impact Study Commission estimated the annual cost of gambling-related problems is over $5 billion.

The ability given to each state for determining its own legality and rules for online gambling has led to a lack of uniformity throughout the United States. This results in inconsistent regulations that complicates enforcement and consumer protection. Even in states with stricter online sports gambling regulations, there still are problems with enforcement and social harms. This is why it is imperative that federal legislation be established to standardize online sports gambling regulation and enforcement. Within this legislation, first there should a uniform identity and age verification process. The know-your-customer procedure should be robust for all nationwide online gambling platforms as to ensure minors do not have the ability to online gamble. There should be a shared nationwide federal database that places banned and violating users so they cannot access any other online gambling platforms. Another aspect of this legislation should include universal limits on deposits to the online platforms. These limits can set a cap on the monetary amount allowed to be deposited on a weekly and monthly basis. In terms of the online gambling platforms themselves, there should be strict federal licensing requirements. These institutions should be subject to comprehensive audits, regulatory scrutiny, and harsh penalties for violations. With the tax revenue projected to be generated, there should be funding allocated to gambling addiction treatment and awareness campaigns. The more people made aware of the dangers and repercussions of gambling addiction can hopefully reduce the prevalence of it in society. A shift towards implementing governmental rehabilitation programs for gambling addicts can hopefully result in accessible recovery for those affected.

The popularity of online sports gambling in the United States will likely continue to increase but with it, so will gambling related issues and social costs. Rather than continuing on this track by allowing online gambling to be regulated solely by the states, federal legislation should be enacted to most effectively enforce and regulate online sports gambling. Federal intervention is necessary to implement nationwide uniform regulations that will protect consumers, prevent underage gambling, and reduce rates of gambling addiction.

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