This week (Sept 11, 2024) U.S. news outlets reported that a federal judge in Washington had struck down a decision by the Commodity Futures Trading Commission (CFTC) to prohibit a company from offering actionable betting odds on the U.S. presidential election and other congressional elections.
This company, which we will keep nameless, offers a type of derivative known as an “event contract” which allows Americans to bet legally on various outcomes of events. Some of these outcomes are lighthearted and seemingly harmless, such as which pop star will win a music award in a given entertainment season. Some are crass, such as this September 12/2024 betting market release (from the same company) exploiting news of a recent earthquake in Malibu:
If a major earthquake hit and bettors made thousands of dollars, would they celebrate despite potential devastation and loss of life? As we said, crass. But we digress.
At press, the federal judge gave no reasoning for overturning the CFTC decision, and the case will likely be tied-up in court for a few more weeks. We will keep our readers updated on the matter in our next monthly Problem Gambling News release (check back here).
Critics of election markets point to how legalization may negatively impact the integrity of political outcomes in the same manner as legal sports betting has impacted perceived integrity of professional sports. However, does America feel all that confident about election integrity in the first place? Opinions on the matter have varied ever since the U.S. presidential election recount in Florida back in 2000. What we are shining a light on instead, is the mental health question surrounding the potential legalization of election betting. Please keep reading.
How the Legalization of U.S. Political Election Betting May be Another Mental Health Concern for Vulnerable Americans
May Encourage Gambling Behavior Among Non-Gamblers
Election betting lands in the category of proposition odds which we have covered extensively in the past. On the surface, being allowed to put money on mainstream events like an election may offer a fun way to get more engaged for millions of Americans. However, this allowance is problematic for anyone who has a vulnerability to developing gambling disorder.
To begin with, there’s the simple fact that legalized election betting adds yet another type of wager for a problem gambler to enter into their betting tickets. But the problem spans beyond that. You see, pop culture prop bets introduce gambling to an entirely new group who normally may not care, nor understand how, to bet on sports. Proposition odds on politics are relatable to an even wider group of Americans. Legalization may therefore create a new population of gamblers who may not have otherwise gotten involved in the activity. This has already been happening with unregulated operators who have fostered a gamble on everything culture across the country. In a nation where problem gamblers account for about 2% of the general population, growing the gambling base subsequently grows the problem gambler base. Mental and behavioral health resources to manage the load are already strained, so any growth in this population is problematic.
U.S. Politics Already Dangerously Divisive
A new phenomenon is occurring in America with the legalization of sports betting across regulated U.S. states. Disgruntled bettors, some of whom may be more vulnerable to gambling related anger, are aggravated by losses and turning on anyone who they rationalize as being to blame, such as athletes, referees, and coaches. It has become so concerning that the Federal Bureau of Investigation (FBI) has gotten involved.
Given how dangerously divisive America already is with respect to politics, does the population really need something else to exasperate irritability and anger? Groups have stormed the Capital over an outcome already, so what might happen if thousands of dollars in lost wagers are added to the mix? Both problem gamblers and gamblers who struggle with their mental health may struggle to maintain an even disposition. Even those who don’t wager, who are predisposed to disruptive anger, may point to compromised voting integrity and lash out with outbursts, aggression and violence.
Our nation is already so tragically divided by politics. Is now a good time to introduce election based gambling and add a layer of complexity?
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