Half Of Sports Betting Industry Revenue Comes From Addicts: Study

An early 2024 study from Connecticut found that more than half of the money sportsbooks rake in comes from the highest severity of problem gamblers.

The sports betting industry relies more heavily on problem gamblers than any other form of gambling in the state.

Connecticut isn’t unique among states in terms of a gambling industry, so similar figures would be expected in other states that have sanctioned online sports betting.

The proportion of Connecticut gambling revenue from about 2% of people with a severe gambling addiction ranges from 12.4% for lottery products to 51% for sports betting, according to the report from Gemini Research.

The proportion was 21.5% for all legalized gambling, making sports betting more than twice as harmful financially as the average gambling activity.

The study was commissioned by the Connecticut Department of Mental Health and Addiction Services (DMHAS).

Sports bettors in Connecticut lose roughly $102 million each year to the sportsbooks.

Broadly, researchers found that over 70% of all legal gambling revenue in Connecticut is generated by fewer than 7% of residents who are classified as either problem (1.8%) or “at-risk” gamblers (4.9%).

The study didn’t determine how much of sports betting revenue is generated by the additional 5% of so-called “at-risk” gamblers. It’s possible that more than 90% of all sports betting revenue is generated by people with some level of a gambling problem.

The real problem gambling rate is much higher than the study’s 7% because many people understate their own gambling activity. Furthermore, “at-risk” gamblers are still struggling with addiction, so it’s misleading to not consider these people problem gamblers.

The study found that 30.7% of adults in the state don’t gamble, so the addiction rate would climb much higher as more people try online sports betting.

Just 10% of adults in the state reported betting on sports.

The study noted that, on average, three people are harmed for every problem gambler. That includes friends and family of the person addicted to gambling.

While sports betting isn’t as popular as other forms of gambling, it’s arguably the most financially destructive for those who participate.

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