PUBLIC POLICY
partnerships. As the industry grows, it attracts investments from major players, including sports teams and media outlets. This growth not only infuses valuable capital into the underlying sports industry but also strengthens ties between various sectors of the economy 6 . Increased tax revenues for critical social services The sports betting black market is a US$ multi-billion business, with Americans spending an estimated US$63+ billion annually on illegal betting 7 . These revenues are neither tracked nor taxed, and they can easily fund illicit activities. Further, black market activity robs state governments of substantial tax revenues that support essential public services. Each state with legal, regulated sports betting has its own approach to funding critical programs with its newfound tax revenue. Nevada’s gaming revenue supports public education, local governments, and problem gambling resources. New York’s revenue funds sports programs for underserved youths, problem gambling education and treatment, and education aid. Since the legalization of sports betting in Indiana, the state has witnessed annual tax revenues exceeding US$40 million 8 , which supports public infrastructure and education. Regulating sports betting further allows the associated tax revenues to be effectively tracked and utilized, with the appropriate monies going back to communities and residents.
Licensed operators often invest in sophisticated software and data analysis tools to detect patterns of problematic gambling behavior. These identify early warning signs and provide personalized interventions to individuals at risk, allowing for timely actions and support. By embracing these advancements, regulated markets can leverage the benefits of technology to take a proactive approach to addressing the issue of problem gambling. As sports betting finds its legal footing across the nation, the industry’s evolution is marked by a deep commitment to responsible gaming and player protection. Technology has played a pivotal role in this commitment, enabling operators to develop advanced tools and systems prioritizing customer safety and well-being. One example of such innovation is applied through artificial intelligence and machine learning algorithms. These technologies allow operators to analyze vast datasets in real time, helping to identify the signs of potential problem gambling. Early detection is a crucial aspect of player protection, and AI-driven tools can flag concerning patterns of behavior, such as excessive spending or erratic betting habits. More must be done Legalizing sports betting has gained tremendous momentum in states throughout the U.S. and jurisdictions around the world. While it offers a broad range of benefits as outlined above, legalization alone is not a silver bullet solution to all the problems associated with gambling addiction. A multifaceted approach is necessary to establish well- functioning markets where consumers are protected, state
Technological innovation One of the most under-appreciated benefits of legalizing sports betting is its impact on innovation in player protection.
6 https://www.cnbc.com/2019/07/01/the-business-of-sports-betting.html 7 https://www.americangaming.org/new/new-aga-report-shows-americans-gamble-more-than-half-a-trillion-dollars-illegally-each-year/ 8 https://www.pickswise.com/sports-betting/indiana/revenue/
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IMGL MAGAZINE | JANUARY 2024
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