Gambling companies are stepping up their lobbying efforts against proposed regulations aimed at curbing addiction-related harms, according to a new report by the Campaign for Accountability. This push comes as the U.S. gambling industry, spurred by the 2018 Supreme Court ruling that legalized sports betting across much of the country, faces mounting pressure from public health advocates to address addiction risks.
A surge in online gambling, along with the legalization of sports betting in 39 states and Washington D.C., has turned gambling into a massive industry. In fact, Americans wagered approximately $150 billion last year alone. However, the booming market has also raised alarms about the impact of gambling addiction on public health, prompting calls for stronger consumer protections.
The Campaign for Accountability, a non-profit watchdog organization, has raised concerns about the industry’s aggressive opposition to various safeguards designed to protect consumers. Among the proposed regulations that gambling firms have fought against are restrictions on advertising, limits on promotional offers, and deposit caps aimed at preventing excessive gambling. These measures, experts argue, could help mitigate the risk of addiction, but the industry’s lobbying efforts are standing in the way of progress.
The Rise of Sports Betting and Online Gambling
The 2018 Supreme Court decision was a turning point for the U.S. gambling landscape. Prior to this, most states banned sports betting, but the ruling cleared the way for individual states to legalize and regulate it. Since then, nearly four out of five states have adopted some form of legal sports betting. As a result, both physical and online sportsbooks have seen a dramatic increase in users, with online gambling platforms playing an even more dominant role.
This expansion has been a financial boon for both states and gambling firms, with revenue numbers soaring. For example, New Jersey’s online gambling market alone generated nearly $1.6 billion in revenue last year, illustrating the scale of the market. But this growth has not been without consequences.
Experts note that while the rise of online gambling provides convenient access and tax revenue, it also leads to a higher likelihood of gambling-related harm. The anonymity of online platforms, combined with the ease of depositing money via digital wallets or credit cards, has made it easier for individuals to become addicted without the social barriers they might face in traditional casinos.
The Pushback: Industry’s Influence in State Legislatures
State lawmakers across the U.S. have been grappling with how to strike a balance between fostering the economic benefits of gambling and safeguarding public health. Many are looking to implement consumer protection measures, such as advertising restrictions, deposit limits, and even self-exclusion programs for individuals struggling with addiction. However, these efforts have been met with resistance from the gambling industry, which argues that such measures would hurt their bottom lines.
The lobbying efforts from gambling firms have been particularly intense in states like New York and California, where lawmakers are considering stronger regulatory frameworks. In California, for instance, proposals to limit online gambling ads and implement deposit limits have sparked fierce opposition from major gambling companies, which have poured millions into defeating the proposed restrictions.
The industry’s lobbying efforts are not just limited to advertising and promotional limits. One of the most contentious issues involves deposit limits, which would restrict the amount of money a person can deposit into an online gambling account. Critics argue that these limits could be a crucial tool in preventing compulsive gambling behaviors, but the gambling industry has resisted these measures, claiming they would undermine customer choice and business growth.
Potential Solutions to Address Gambling Addiction
While the gambling industry fights against these proposed regulations, public health experts continue to push for stronger protections. According to the Campaign for Accountability, deposit limits are one of the most effective ways to curb gambling addiction. These caps could help individuals avoid financial ruin by limiting the amount of money they can spend on gambling in a given period. Alongside deposit limits, the report highlights the need for better safeguards against deceptive advertising practices and promotions that encourage excessive gambling.
Several states have already taken action by passing laws requiring gambling operators to adopt responsible gaming measures. For instance, Illinois has implemented a self-exclusion program that allows individuals to block themselves from gambling platforms for a set period. Other states, including New Jersey, have introduced regulations to require online gambling sites to display warnings about addiction risks.
Despite these efforts, experts argue that more needs to be done to tackle the issue at a national level. A federal framework that mandates consumer protection measures for all states, regardless of local regulations, could help standardize safeguards and ensure that gambling companies are held accountable for their role in addressing addiction.
While the industry remains largely opposed to new regulations, there is growing recognition that addressing the risks of gambling addiction will require a collaborative effort between lawmakers, public health experts, and the gambling sector itself. As more states embrace legalized sports betting and online gambling, the conversation around consumer protection will likely become more urgent in the coming years.
