Gambling with America’s Future: The History, Impacts, and Future of Sports Betting Legislation

Considering the widespread stigma surrounding most gambling behavior, the practice of sports betting is curiously normalized and prevalent within our society. About thirty percent of Americans participated in sports betting in 2024 alone. [1] Prior to 2018, sports betting was illegal in accordance with the Professional and Amateur Sports Protection Act, which was passed in 1992. This Act “banned sports betting outside of Nevada and tribal casinos.” [2] However, in 2018, Congress overturned the Professional and Amateur Sports Protection Act through their decision in Murphy v. National Collegiate Athletic Association, 584 US 453 (2018), claiming that it was “an unconstitutional limit on state sovereignty” and shifting the responsibility of creating sports betting legislation to the states. [2] In the seven years since this ruling, “[thirty-eight] states and the District of Columbia have legalized sports betting in some form,” allowing the rapid expansion of this activity. [3] Some form of regulation needs to be imposed on the practice of sports gambling, as this activity is correlated with harmful mental health and economic outcomes, the rates of which have increased dramatically since sports gambling’s legalization.

The rapid growth of sports betting is problematic, as gambling behavior is linked with numerous mental health problems. Although it is often treated as a game, gambling is dangerous as it can “stimulate the brain's reward system much like drugs or alcohol can, leading to addiction.” [4] With enough time, these effects can cause gambling disorders that cause people to compulsively gamble without heed for the mental and economic impact it has on their lives. [4] It is estimated that about three million people in the U.S. suffer from gambling addiction, and another seven million have symptoms of this disorder. [5] Gambling behavior has also been found to be correlated with other severe mental health problems, such as suicide rates [6], rumination, and depression. [7]

The unchecked legalization of sports betting is also problematic due to the economic consequences this activity poses. In the first four years that online sports gambling was legalized in any given state, “the average credit score within that state declined by nearly [one] percent,” and bankruptcy “filings surged by over twenty-five percent across the same period.” [8] On a societal level, it is estimated that two hundred and twenty billion dollars have been spent on sports betting in the first five years after its legalization [9], and “each dollar spent betting on sports online corresponded with a two-dollar decrease in stock investment activity” [8]. These effects show that the economic impacts of sports gambling extend to a societal level as well as an individual one.

In addition to the mental and economic impacts of sports gambling, there are also numerous consequences that are often overlooked by mainstream media. The legalization of sports betting inherently increases the risk of corruption from college athletes or referees who have an incentive to profit from certain game outcomes. [10] Additionally, the expansion of this activity has increased hostility toward college and professional athletes from losing betters, and states have already had to pass “laws that ban individuals who engage in violence against athletes [...] from future participation.” [9]

Given the numerous consequences that the legalization of sports betting has had in only seven years, regulation needs to be imposed on this practice. Some proponents of regulation argue that this should be achieved through federal legislation that fills the gaps from the ruling in  Murphy v. National Collegiate Athletic Association by setting a federal standard or “baseline that all states must meet when enacting their own laws” about sports gambling. [11, 12] This solution would regulate sports gambling by setting foundational practices while still maintaining state autonomy to enact their own laws about this activity. It represents a balance between federal oversight and state independence that holds the power to reduce many of the negative outcomes associated with the legalization of sports gambling..

Others who support regulation argue that the main problem with sports gambling is its accessibility and believe that online sports betting should be completely banned. About eighty-five percent of legal sports bets in America are placed through online sports websites. [10] This ease of access has removed all barriers to sports betting and drastically increased participation rates. In a similar line of reasoning, other dissenters assert that the current advertising practices of sports betting platforms are problematic because they increase accessibility of this activity and target vulnerable underage populations. New York has already proposed “regulations prohibiting advertising on college campuses or any advertisements that are aimed at individuals below the legal age for gambling.” [13] These marketing restrictions should be passed at a federal level to ensure that betting companies are not taking advantage of underage populations by exposing them to sports gambling at an age when they are especially susceptible to mental health risks.

The strongest opponents of sports gambling legalization argue for a piece of proposed legislation called the SAFE Bet Act, which would reinstate a national ban on sports betting and require states to apply to the U.S. Justice Department for three-year permits to temporarily legalize betting. [14] This Act would allow states to continue enacting their own laws about sports gambling, but subject them to federal oversight to ensure their policies are safe for vulnerable populations.

While the amount of regulation that should be placed on sports betting is debatable, the need for some form of regulation is not. Currently, the unchecked expansion of this practice is threatening individuals and the entirety of American society through mental health and economic consequences. Federal regulation of sports betting is needed to minimize these impacts, ensure the practice is executed legally, and protect vulnerable populations from its risks.

Edited by Hanrui Huang
Endnotes

[1] Buchholz, Katharina. “Infographic: What Sports Do Americans Bet On?” Statista Daily Data, February 25, 2025, www.statista.com/chart/33925/share-of-us-respondents-bet-on-sports/?__sso_cookie_checker=failed.

[2] Adewunmi, Yemi. “Sports Betting Laws: A Comprehensive Overview.” Plural Policy, July 9, 2024, pluralpolicy.com/blog/sports-betting-laws/.

[3] Williams, Ward. “Sports Betting Laws by State.” Investopedia, www.investopedia.com/sports-betting-laws-by-state-5219064.

[4] “Compulsive Gambling.” Mayo Clinic Foundation for Medical Education and Research, www.mayoclinic.org/diseases-conditions/compulsive-gambling/symptoms-causes/syc-20355178.

[5] Boland, Danielle. “Sports Betting Demographics in the U.S.” Birches Health, December 9, 2024, bircheshealth.com/resources/sports-betting-demographics-in-the-u-s.

[6] Marionneau, Virve, and Nikkinen, Janne. “Gambling-Related Suicides and Suicidality: A Systematic Review of Qualitative Evidence.” Frontiers in Psychiatry, U.S. National Library of Medicine, October 26, 2022, www.ncbi.nlm.nih.gov/pmc/articles/PMC9645554/. 

[7] Krause, Kristian, et al. “Explaining the Relation between Pathological Gambling and Depression: Rumination as an Underlying Common Cause.” Journal of Behavioral Addictions, U.S. National Library of Medicine, June 1, 2018, pmc.ncbi.nlm.nih.gov/articles/PMC6174589/.

[8] Connor, Brian. “The Consequences of America’s Big Bet on Sports Gambling.” The Regulatory Review, December 3, 2024, www.theregreview.org/2024/12/10/connor-the-consequences-of-americas-big-bet-on-sports-gambling/.

[9] Diaz, Alyson, Dunn, Korinne, and Mengesha, Saba. “Betting on Improvements to Sports Gambling Regulations.” The Regulatory Review, August 20, 2024, www.theregreview.org/2024/02/24/saturday-seminar-betting-on-improvements-to-sports-gambling-regulations/.

[10] Holden, John, Edelman, Marc, and Miller, Keith. “Legalized Sports Wagering in America.” Cardozo Law Review, cardozolawreview.com/legalized-sports-wagering-in-america/.

[11] Gross, Bennett. “A Safe Bet: Advocating for a Uniform Federal Approach to Sports Betting.” Georgetown Law Technology Review, May 20,  2024, georgetownlawtechreview.org/a-safe-bet-advocating-for-a-uniform-federal-approach-to-sports-betting/GLTR-05-2024/.

[12] Stindt, Jarred. “Never Tell Me the Odds: The Importance of Federal Legislation in Sports Gambling Regulation.” The Journal of Corporation Law, https://jcl.law.uiowa.edu/sites/jcl.law.uiowa.edu/files/2021-08/Stindt_Final_Web.pdf.

[13] “The Legal Landscape of Sports Betting: Past, Present, & Future.” The Columbia Journal of Law & the Arts, November 11, 2023, journals.library.columbia.edu/index.php/lawandarts/announcement/view/664.

[14] Barr, John. “Lawmakers Propose New Federal Regulations on Sports Betting.” ESPN, www.espn.com/sports-betting/story/_/id/41234480/congressmen-propose-new-federal-regulations-sports-betting.