Venmo Sports Betting: Payments App Could Ban Harassers

The payment app Venmo announced that it will begin monitoring users who engage in sports betting and harass NCAA student-athletes.

Under a deal with the NCAA, Venmo said it will review unwanted payment requests received by collegiate athletes. These requests usually come from sports bettors who lost a wager and believe the athlete was responsible.

Venmo has not disclosed how many unwanted payment requests are tied to sports betting. The app did say that “unwanted interactions to athletes make up an extremely small percentage of transactions.”

Still, there have been some high-profile cases. In June, the world’s top golfer said he deleted his Venmo because of sports bettors.

“The harassment we are seeing across various online platforms is unacceptable,” NCAA President Charlie Baker said in a statement.

“We applaud Venmo for taking action, and we need more social media companies and online platforms to do the same. Several states have passed laws to crack down on this behavior to protect student-athletes, and we hope more do the same because stopping this abuse requires action on multiple fronts.”

The most effective solution is education and prevention because athlete harassment is often a sign of problem gambling. Sports betting is also linked with anger issues.

Venmo Sports Betting Safety for Athletes

Venmo said it will address NCAA athlete harassment in three core ways:

1. Reporting hotline: Venmo will offer a dedicated hotline for student-athletes to report potential cases of abuse for investigation and identify typologies of athlete harassment. The app will provide a safety guide for student-athletes with details on the reporting hotline.
2. Athlete account support: Venmo will monitor student-athletes’ accounts on an ongoing basis to help mitigate an influx of requests based on game performance and work directly with them to implement additional security measures as needed.
3. User education: Venmo will educate users on the potential consequences of harassing athletes through unwanted requests, including the possibility of account closure.

Can You Use Venmo for Sports Betting?

Venmo is accepted among major legal U.S. sportsbooks like DraftKings, FanDuel, BetMGM, Caesars, BetRivers, ESPN Bet, Fanatics and Bet365.

The option to use Venmo for sports betting depends on your state. Some states don’t allow licensed gambling apps to accept Venmo deposits.

At DraftKings, for example, users in certain states can deposit up to $5,000 per Venmo transaction and up to a total of $20,000 per week with a verified Venmo account.

The sportsbook said on its website that Venmo deposits are processed immediately.

The ease with which users can deposit huge sums of money instantly can elevate the risks of gambling addiction. Venmo also doesn’t have overdraft protection, which puts some users at increased risk of financial harm from gambling.

Can You Use Venmo for Your Own Gambling?

Venmo’s terms of service explicitly prohibit the use of the platform for gambling.

Venmo has stated that it could close or suspend your account if it’s flagged for gambling. However, policy enforcement could be relatively weak.

In 2022, Quartz reported that about 10% of public transactions on Venmo were related to March Madness in the days leading up to the tournament.

The report also said that “minutes ahead of the first game” of the tournament, March Madness betting pools “could have accounted for more than a third of total transaction volume on Venmo at that time.”

While Venmo allows transactions with sports betting apps, it technically prohibits transactions that are directly related to a bet.

No Gambling Safeguards on Venmo

Venmo does not currently offer specialized support or protections for gambling addicts.

The money transfer app lacks tools such as spending limits, self-exclusion capabilities, and notifications to curb problem gambling.

These tools can be available with a regulated betting app, but not via payment apps.

The PayPal-owned company also does not publicly release any data on problematic gambling deposit behavior.

What’s Next

If Venmo wants to be more serious about preventing harassment of NCAA athletes, the payments app should block transactions involving betting apps like DraftKings and FanDuel.

Otherwise, Venmo’s stance against harassment rings hollow while it profits from sportsbook deposits.

Sports gamblers who use Venmo to fund their betting accounts can use other methods to deposit. Still, Venmo could take a bold stance against sports betting by ceasing involvement with the industry.

The payment app could also make public the data it has on sports betting deposits, allowing advocates and researchers to better understand how individuals with gambling addiction might use the app.

It could also be helpful to know if a sports bettor who uses Venmo to fund their account is more likely to harass an athlete, compared to a Venmo user who doesn’t use the app for betting deposits.

None of these things is likely. Venmo will continue profiting from sports betting despite the inevitable athlete abuse due to gambler losses.

Read more: Sports Betting Addiction Statistics