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How the Rise of Online Sports Betting Birthed a Generation of Problem Gamblers

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MGM National Harbor, Gov. Larry Hogan and Joe Theismann launch sports betting in Maryland with BETMGM at MGM National Harbor on Dec. 9, 2021, in Oxon Hill, Maryland. A growing number of young people across the country and in California are betting on sports in excess. Gambling addiction experts warn that the ease of online betting is making the problem worse. (Shannon Finney/Getty Images for MGM National Harbor)

David Leong was 16 years old the first time he made money on a sports bet.

“I’ll never forget, one day my dad asked me if I thought the Lakers would win,” he said. “I was like, ‘Yeah, sure they would win.’ Sure enough, they win and he wins money, and he breaks me off with a $20 bill.”

The next day, Leong’s dad asked his opinion on another bet and again, after winning, rewarded him with $20.

He was hooked.

Within a year, Leong had made his first online sports betting account and placed wagers using money he made from odd jobs. After he turned 18, he was making more money, applying for credit cards and taking out loans. He said it all went to gambling.

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A growing number of young people in California have similar stories. Gambling addiction experts warn that online sports betting, which is not legal in the state, makes it easier to bet in excess and harder to pull away — especially on cellphones. When there’s a major event like the ongoing NCAA basketball tournament, sports betting activity spikes, and in the aftermath, so do the numbers of people seeking treatment for problem gambling.

During the 2018–2019 fiscal year, 36% of problem gamblers between 18 and 30 years old reported betting on sports, according to the California Gambling Education and Treatment Services Program. Five years later, that number jumped to more than 60% even as rates of other types of gambling like poker and lotteries fell.

Leong said his parents eventually caught on after noticing him spending whole days watching football games on his laptop as credit card bills piled up. He finally sought treatment at 24 after his parents threatened to kick him out of their home.

“The financial destruction of it was absolutely insane. I ended up with hundreds of thousands of dollars of debt and a bankruptcy when I was pretty young,” Leong said.

‘A casino in your pocket’

Dozens of states have legalized sports betting after a 2018 Supreme Court ruling overturned a federal ban, but California is not among them.

That’s not for lack of trying.

A pair of 2022 ballot measures, which would have legalized online sports betting and sports betting in Native American tribal casinos, both failed to pass. 

Californians are still able to wager money on sports through several means. One is daily fantasy sports, where users pay an “entry fee” and draft mock lineups or make predictions about individual players, such as whether one will score higher or lower than 20 points, or whether another will get more or less than 12 rebounds.

The companies operating these apps argue that their users aren’t gambling because they are competing against other players, not against the house, and because the games are more skill-based than chance-based.

Many people also use online sportsbooks from companies that are based in other countries, and therefore aren’t inclined to abide by state law.

Dr. Timothy Fong, co-director of UCLA’s Gambling Studies Program, which helps oversee CalGETS, said the majority of patients he sees now are specifically struggling with online sports betting.

“Gambling is ubiquitous, it’s accessible … you can’t turn without seeing it. You have a casino in your pocket,” Fong said. “Contrast that to me when I was 26 … if I wanted to bet on sports, I had to have a tremendous amount of effort to place any bet. I needed to drive somewhere, I needed to go to the bank, I needed to carry cash. I mean, it was an entirely different world.”

Fong believes that many of his younger patients would not be gambling excessively were it not for that access.

“I have so many patients who’ve said to me, ‘I’ve never set foot inside a brick and mortar casino in my entire life,’ and yet, they have a substantial gambling disorder,” he said.

Early adulthood is also a common time for people to begin gambling. State gambling helpline data shows that more people reported their gambling issues started between the ages of 18 and 25 than any other age group.

Leong, who quit gambling after lots of work, is now 32 and a social worker helping other people struggling with gambling problems. He said he’s also concerned by the increased access to gambling through phones.

“I think addiction is much more severe than it used to be,” Leong said. “I’d hear about stories where you call your bookie 10 times a day. Now, gambling online, you hear people firing off like 50 bets in an hour.”

Tomorrow’s gamblers

Gambling disorder experts argue that daily fantasy sports apps use similar tactics as social media sites to keep users engaged and coming back.

“Intermittent reinforcement, gamify it, constantly have this pressure that something new and fresh is coming and if you log off, you’re going to miss it,” Fong said.

It’s not only seen in sports betting and daily fantasy. Some experts are also criticizing video game companies for using similar tactics, which they say could prime children for gambling later in life.

Many video games sell so-called loot boxes. The boxes contain mystery prizes, and players buy them — often with real money — for a chance to win high-value items like special characters.

“Video games for many years, since the introduction of in-app purchasing, have utilized methods of sales for in-game consumable items, or digital items that follow psychological practices that make people more likely to continue to spend more money,” said Robert Jacobson, executive director of the California Council on Problem Gambling, which runs the state’s 1-800-GAMBLER helpline.

“It’s our position that many of those practices meet the legal definition of gambling,” Jacobson said.

The comparison makes sense. When a user purchases a loot box, they’re doing so in the hopes of winning a big prize, much like buying a scratch-off in the hopes of winning a jackpot.

And the connection isn’t lost on the users.

Beginning in 2018, the helpline began asking some callers whether they’ve ever spent more time or money on video games than they could afford because it gave them a gambling-like rush. In 2019, 219 callers answered yes. Five years later, that figure had climbed to 345.

Fong said he saw firsthand how captivating loot boxes could be for his own son, who was playing an NBA video game.

“He kept buying these packs to try and get the player he wanted,” Fong said. “But he kept buying, and he kept not getting it. Buy, buy, buy. Eventually, in the span of about two hours, he spent $1,000.”

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