Online gambling is surging across the U.S., drawing urgent warnings from financial experts.
Jill Castilla, CEO of Citizens Bank of Edmond in Oklahoma, shared her perspective in a social media post on Feb. 18.
“In my two decades in banking, the No. 1 financial villain is gambling addiction,” she said. “It’s ruined companies, trusted relationships, marriages, credit, families, careers — talk with your people about their activities. Monitor your accounts for heavy ATM usage, online purchases.”
Castilla is one of the most prominent voices in the sector. She has served on the Federal Reserve’s Federal Advisory Council. American Banker has named her among the “25 Most Powerful Women in Banking” for 12 consecutive years.
Zooming Out
Mounting research shows that online sports betting is destabilizing U.S. households. Since 2018, most U.S. states have legalized and regulated online sports betting. States such as Michigan, Pennsylvania, and Maine have also authorized online casino gambling, compounding the financial risks from this “villain.”
Worsening the situation are federally certified prediction markets such as Kalshi and Polymarket that facilitate stock-market-style sports betting. Robinhood users can also “trade” on sports events. Even official White House events have subtly promoted these products, amplifying potential harms.
Alarmingly, in late 2025, Bank of America warned that some private lenders, including student-loan giant Sallie Mae, are now under “pressure” due to online sports betting.
Americans can also experience financial harm through various other forms of online gambling, such as sweepstakes and so-called social gambling platforms. In February 2026, Washington State sued companies behind products such as Bingo Blitz and NFL Super Bowl Slots.
Dozens of class action lawsuits have been filed against regulated and unregulated online gambling operators in recent years. Influencers such as Drake have also been sued for promoting gambling.
Combating the Financial Villain
More states are considering restricting the use of credit cards for online gambling. Research has suggested that the impacts may be minimal for curbing addiction, but it’s a step in the right direction.
States such as New York, Maryland, and Illinois are hotbeds of legislation to reform what critics call the loose regulation of online gambling. A few states have also seen legislation to repeal legalized online sports betting.
At the federal level, the SAFE Bet Act urgently seeks to establish uniform guardrails for online betting. However, it has stalled in Congress so far.
There are also state (e.g., Iowa and New York) and federal proposals to rein in prediction markets.
More financial education on gambling is needed to combat the “villain.” Far too many people think they can make a living or get rich through gambling. Some states have passed or are considering laws to require public schools to teach students about the risks associated with gambling.
