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As the digital gambling landscape in the United States expands rapidly, experts are sounding the alarm over the inadequacy of public health resources designed to address gambling addiction. Following a recent endorsement from former President Donald Trump for the burgeoning prediction market platforms, advocates are urging immediate action to support those affected by gambling-related issues.
The Rise of Prediction Markets
Since the U.S. Supreme Court overturned a long-standing federal ban on sports betting in 2018, the online gambling industry has seen unprecedented growth. Currently, sports betting is legal in 39 states and Washington D.C., paving the way for platforms like Kalshi and Polymarket, which allow users to bet on a diverse range of events, from sports outcomes to entertainment awards.
These platforms have aggressively marketed their services, notably during high-profile events such as the NBA finals and UFC matches held on the South Lawn of the White House. The increasing visibility of these platforms has normalised betting in regions where it has traditionally been illegal, particularly in states like Utah and Hawaii.
Timothy Fong, an addiction psychiatrist and gambling researcher at UCLA, cautions that as accessibility and normalisation of gambling increase, so too will the incidence of gambling-related issues. “When you expand access and availability and normalisation of it, you’re going to have more participation,” he said. “More participation leads to more problems and side effects.”
Regulatory Challenges and Controversies
The distinction between prediction markets and traditional gambling platforms has become a contentious issue. Companies like Polymarket assert that they provide “event derivatives” rather than gambling services, which would typically require state-level regulation. This federal oversight by the U.S. Commodity Futures Trading Commission (CFTC) allows these platforms to operate in states with strict anti-gambling laws.
However, this interpretation is currently under legal scrutiny, with numerous lawsuits challenging the classification of prediction markets. Critics argue that these platforms should be subject to state gambling laws, creating a complex regulatory environment. As this legal battle unfolds, the Trump administration has voiced support for the prediction market industry, with the former president emphasising the need for federal protection over these emerging platforms.
The Public Health Response
Despite the rapid proliferation of gambling opportunities, public health resources aimed at tackling gambling addiction remain woefully inadequate. Fong highlights that California allocates roughly $9 million annually for problem gambling services, while spending hundreds of millions on addressing alcohol and tobacco-related issues.
The absence of a dedicated federal funding stream for gambling addiction prevention and treatment exacerbates the situation. In states like Utah, which boasts some of the strictest anti-gambling laws, there are no state or federal-funded resources specifically for problem gambling. The National Council on Problem Gambling (NCPG) reports a concerning increase in calls to its helpline from Utah residents, indicating a growing need for support.
Cole Wogoman, the NCPG’s director of government relations, underscores the importance of having adequate resources available, stating, “Our helpline can only offer resources if the resources are there.” In Utah, where local support is limited, individuals seeking help often face barriers to accessing necessary care.
The Need for Federal Action
Calls for a coordinated federal approach to gambling addiction treatment have gained momentum, particularly as online betting continues to proliferate. The NCPG has endorsed the Points Act, introduced in Congress, which aims to establish the first federal funding stream for gambling addiction resources.
“It’s long past time for the federal government to take this addiction seriously,” Wogoman asserts. As online gambling becomes ever more entrenched in American culture, the need for comprehensive public health strategies to address its potential harms is becoming increasingly urgent.
Why it Matters
The expansion of online gambling and prediction markets poses significant challenges to public health in the United States. As these platforms proliferate, so too does the risk of addiction and associated societal harms. Without a robust framework for prevention and treatment, vulnerable individuals may fall through the cracks, leading to a public health crisis that demands immediate attention. As lawmakers grapple with the implications of this growing industry, the time for proactive measures is now, ensuring that all Americans have access to the support they need.