Major League Baseball and the NBA are investigating high-profile betting scandals involving athletes, which has led seven of the largest U.S. sportsbooks, such as FanDuel and DraftKings, to form a trade group known as the Responsible Online Gaming Association. The association aims to share best practices and the names of customers who have been banned from their platforms due to problematic betting behavior.
In 2023, Americans legally wagered nearly $120 billion on sports, marking a 28% increase from the previous year. This surge in sports betting has also contributed to increased fan engagement, as highlighted by Kenneth Shropshire, an expert in the sports business at Wharton. Shropshire notes that people are more invested in watching games until the end to secure their bets, which has become a significant factor in driving viewership.
Despite the positive impact on fan engagement, concerns around irresponsible gambling, addiction, and athlete betting scandals persist. Shropshire emphasizes the importance for leagues and sportsbooks to address these issues to maintain the integrity of sports. The collaboration among sportsbooks to establish the Responsible Online Gaming Association is a step towards building consumer confidence.
Economist Victor Matheson from the College of the Holy Cross points out that while the sportsbooks are aiming to promote responsible gambling, their primary goal is to maximize revenue by encouraging increased betting activity. He suggests that these companies may be implementing internal regulations to mitigate the risk of facing stricter government regulations in the future.
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The American Gaming Association reports that Americans legally wagered nearly $120 billion on sports in 2023
