NBA Finals will trigger a surge in sports betting. We need to help problem gamblers.

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As the Denver Nuggets and the Miami Heat meet in the NBA Finals, Americans will bet tens of millions of dollars on the outcome. The U.S. Supreme Court made such betting possible in 2018 when it overturned the federal ban on sports betting.

And new research by the American Gaming Association shows that the overwhelming majority of American adults (85%) say the court made the right call in allowing states to decide whether to legalize sports betting.

The public embrace of sports betting has drawn media attention to problem gambling and how to bet responsibly. That discussion is important, and one that the gaming industry welcomes.

Even before Supreme Court ruling, illegal sports betting was a $150 billion annual market

Since the court’s decision, 37 states and Washington, D.C., have concluded that legal, regulated sports betting is better than the illegal markets that had always existed. But the rapid expansion of sports betting has prompted some to claim the court’s ruling is fueling a surge in problem gambling.

Does anyone really believe problem gambling didn’t exist before 2018 when illegal sports betting was an annual $150 billion market?

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Illegal sports betting does not generate any money to support problem gambling programs. Today, nearly every dollar that states earmark for problem gambling services – $94 million in 2021 alone – comes from casino gaming taxes, including rising revenues from sports betting.

In part, that’s because as legal betting grows, the illegal market is shrinking – from $150 billion to about $64 billion last year. In 2019, less than half of online bets took place legally; today, more than 3 out of 4 occur in legal, regulated markets. 

As the Denver Nuggets and the Miami Heat meet in the NBA Finals, Americans will bet tens of millions of dollars on the outcome.
As the Denver Nuggets and the Miami Heat meet in the NBA Finals, Americans will bet tens of millions of dollars on the outcome.

Rising tax revenues for support services and the migration of players to the protections of the legal market are advancing responsible play. But we can always do more.

First, states should dedicate funding to advance responsible gaming education and problem gambling services, not divert it for general use. This includes funding for proactive consumer education, research and problem gambling treatment – building upon our industry’s investments in responsible gaming tools and education. 

The money is there. Sports betting has generated $3 billion in taxes for state governments since 2018. Yet some jurisdictions are diverting resources intended to fight problem gambling. For example, in Washington, D.C., the city council approved the mayor’s budget plan for 2024 that doesn't take advantage of the funding raised for problem gambling.

Advertising that promotes gambling is banned on college campuses

Second, all stakeholders need to evolve and adapt to a rapidly growing market. As concerns about advertising have been raised, the American Gaming Association has strengthened our Responsible Marketing Code for Sports Wagering.

In addition to banning advertising on college campuses, the code now prohibits college partnerships promoting sports wagering, bars operators from advertising “risk free” betting, and bans name, image and likeness deals with college athletes. 

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Every AGA member agrees to adhere to the code, and we believe every business operating in the United States should meet the high standard it sets. Advertising is one of the top five reasons bettors move to the legal market, and it raises awareness about problem gambling resources.

Third, states need to ensure help is easily accessible. Problem gambling helplines are a vital resource for fans who need help. But lists of state-specific hotlines presented in tiny type at the end of a TV ad are a barrier to people seeking assistance.

State regulators and policymakers should allow advertisers to promote a single, national hotline. Just as important, anyone seeking help through this national resource should receive consistent, quality care at all times.

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As sports betting expands, news reports point to increased helpline call volumes as evidence that problem gambling is surging. But that’s not the full story. In Pennsylvania, for example, 80% of helpline calls had nothing to do with people seeking help for problem gambling. The Virginia Council on Problem Gambling reported the same for 87% of its calls. And experts say a call increase may actually signal greater awareness that help is available – a shared imperative for anyone involved in legal sports betting.

Legal sports betting is creating more informed consumers, generating greater awareness for problem gambling resources and supporting essential public services. And the growth of sports betting is now sparking a national conversation about the best way to help those who struggle with problem gambling.

Problem gambling resources have never been better funded and marketed than they are today. And that's evidence that states that have embraced legal sports betting made the right call.

Bill Miller is president and CEO of the American Gaming Association.

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This article originally appeared on USA TODAY: NBA Finals means big betting on Nuggets, Heat. Be responsible.