New Jersey has long prided itself as a leader in legalized gambling. It launched a lottery in 1970 and soon after allowed casinos in Atlantic City. About a decade ago, online betting was allowed, and then in 2018, after winning a victory at the Supreme Court, the state opened a door to online sports betting. Since then, people in New Jersey have legally wagered more on sports than people in Nevada, where the practice has long been allowed.
Last week, New Jersey proudly proclaimed a new first in the nation, albeit one aimed at solving a problem it helped create. The state now requires online gambling operators to track whether players show signs of excessive gambling and, if so, intervene in their behavior and offer corrective steps.
“It is no coincidence,” said state Attorney General Matthew Platkin, “that our announcement comes just a week ahead of one of the biggest days in sports wagering, serving as a reminder of how devastating a gambling addiction can be.”
He was referring, of course, to the Super Bowl matchup on Sunday between the Philadelphia Eagles and the Kansas City Chiefs. The number of Americans planning to place online wagers on the game is expected to increase 66% over last year, according to a survey by the American Gaming Association. The total amount in legal and illegal bets is expected to double, reaching $16 billion. That’s largely a result of more states – 36 – having some sort of legalized sports betting as well as a massive rise in ads for online gambling.
Just over half of all American adults now live in places where sports betting is legal. At the same time, 71% are “very” or “somewhat” concerned that the increasing availability of sports betting will lead to more people becoming addicted to gambling, according to a 2022 survey by The Washington Post and the University of Maryland. And the fastest-growing segment of gamblers are children and young people, according to the National Council on Problem Gambling.
Last year, Virginia was the first state to pass a law requiring educational materials on gambling as part of the curriculum in public schools. Similar bills are pending in a few other states. Since 2011, North Carolina has offered its schools a program called Stacked Deck that teaches the history and risks of gambling. A survey last year showed a noticeable drop in many forms of gambling among students who took the course. Wisconsin public schools have been offered a similar course since 2015.
Perhaps the official body most concerned about an increase in sports betting – and its effect on sports – is the National Collegiate Athletic Association. Its website affirms the integrity of college athletics: “Sports competition should be appreciated for the inherent benefits related to participation of student-athletes, coaches and institutions in fair contests, not the amount of money wagered on the outcome of the competition.”
New Jersey could soon become ground zero in the U.S. for a rethink of legalized sports gambling. “The nation’s love affair with sports betting may be having unintended consequences,” writes Lia Nower, director of Rutgers University’s Center for Gambling Studies, in a new study done for the state.
The study found that sports betters in New Jersey were more likely than others who gamble to have high rates of “problem gambling” and excessive use of drugs and alcohol, and more struggles with mental health. The study also found the fastest-growing group of sports bettors are adults ages 21 to 24. No wonder gambling operators in the state are now busy tracking wagers, ready to offer help for behavior that could easily be avoided.