This weekend the best mens college basketball teams will face off competing for a spot in this years national championship. For fans, this will be amazing basketball and sport to watch but there is another side to it. These high-stakes matchups provide some of the most lucrative events for sports betting apps, with nearly $3 billion wagered on this years March Madness alone. 6 years ago sports betting was illegal under federal law, now sports betting is rapidly expanding throughout the nation and is continuing to grow. 38 states have legalized sports betting, and new states are seeming to follow by the day.
One large topic revolving legal sports betting is how it enables big business, which for sports betting sites includes advertisements. Draft Kings for example is a largely advertised site, and as long as it is not misleading or deceptive they can advertise legally. A pro of this is how it guides the average consumer away from illegal gambling markets to legal ones, which raises tax revenue for governments and helps consumers avoid fraud. But the downside that some consumers are complaining about is advertising convinces more people to gamble, most importantly underage consumers (under 21) and recovering gambling addicts. A recent study shows recovering addicts complain that the deluge of ads presents a constant temptation to place another bet.
So what is the right decision? The United States Government are seeing the tax revenue roll in ever since legalizing spots betting, but is it regulated enough? For example are professional athletes who see a line or their own prop bet going to play differently, or even wager on themselves illegally? Only time will tell and as the rise of sports betting continues to grow, more regulations will be put in place to ensure it is completely legal as well as engaging for the consumer and participating market.
Article from the New York Times: The Morning
7 comments:
Do you think the tax revenue generated from legal sports betting justifies the potential social costs associated with increased gambling activity, particularly among vulnerable demographics?
What are the implications of the rise of sports betting particularly regarding the impact on consumer behavior and the integrity of professional sports.
How will companies find a mix between generating revenue and making sure people are not betting more than they can afford? Many people struggle with gambling addictions and it is likely to increase in coming years. I wonder if there will be a ban on sports betting many years down the line.
i think companies/apps should set a limit for how much people can bet similar to a credit limit based on their income and history this would prevent people from betting what they dont have and also prevent them from loosing it all
The increase of sports betting has seen positives and negatives. On one hand, it enables business and advertisement but on the other it may negatively impact certain demographics. Legislation around the pros vs the cons will be interesting to see
I am waiting to see huge lawsuits and controversies involved within the sports betting scene involved with athletes betting on themselves or each other.
I am surprised to see how quickly sports betting has become normalized, within just a year or two it seems like most people I know have at least tried sports betting. The advertising for it is also extreme and dominates the commercials for every sporting event.
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