The string of words that form “illegal sports betting” on their own indicate that the activity is wrought with potential consequence and is therefore something that should be avoided. And yet, 89% of American wagers on the most recent Super Bowl were made using unregulated sportsbooks. It’s not the bookies found in the dark recesses of the city that the data draws from. It’s easy to see how they can put people at risk. No, instead the data references bookmakers who essentially operate out in the open. These operators sponsor amateur and professional athletes, and even those involved in the Olympics. They advertise their point spreads and sign-up promotions on all of the major social networks. Operating at arm’s length from federal law, these Curaçao-licensed bookmakers permit Americans to bet online in states that are not included on the regulated gambling legislation map. And aside from the feds making an example of one of them every decade or so, they persist on American soil with relative impunity.
Why do U.S. sports bettors continue to gravitate to these platforms? Some are unaware of the fact that they are illegal. Considering that unregulated operators sponsor professional athletes with a considerable American fanbase you can hardly blame anyone for ignorance. However, others use these operators to knowingly subvert laws against sports betting in their state. How do you convince a hardcore Chargers fan in Fort Bidwell CA that he/she can’t put 50 bucks on their team when they are a short punt from Oregon/Nevada where the activity is legal? Although, a number of sports bettors in regulated states still choose the unlawful route because felonious bookmakers offer sign-up bonuses that legitimate operators can’t compete with. It is not uncommon to see the unregulated market offer 100-150% registration bonuses to new players, whereas regulated operators only have the room for about 20-30% first-time deposit matching. Regulated operators are also restricted by the AGA’s Responsible Marketing Code for Sports Wagering, which limits how they can communicate promotions to prospective customers. To the average sports bettor, a “25% Profit Boost” message is less clear and less enticing than one that states “Double Your Deposit with a 100% Risk-Free Bonus”.
How can the regulated market possibly compete? Change needs to come from the other side of the coin.
It has become extremely important for the rapidly-growing American sports betting public to understand that illegal sports betting is dangerous and should be avoided at all costs. But what exactly is the danger when compared to the regulated market? After all, “gambling addiction” doesn’t know the distinction, does it? At the most basic surface-level, there is an expectation that state and federal governing bodies may start going after the citizens who knowingly gamble with illegal bookmakers. The U.S. Department of Justice has had little luck in targeting unregulated operators who dance around with Curaçao and Malta licenses in their pockets. If the DoJ instead decides to strike fear in the hearts of U.S. based sports bettors, they can cut-off revenue streams to illegal bookmakers and send them packing back to their offshore headquarters. And imagine what will happen if the IRS starts paying closer attention to financial transactions made between bettors and these operators? But even the threat of citizen persecution is not enough. Instead, the public needs to realize that there is a bigger picture peril to consider; compromised mental health.
The unregulated offshore market has no vested interest in protecting the mental health of its player base. They know that there is an assembly line of new customers coming their way. With an Ivan Drago rationale they churn through churn rates without regard. This is the danger that our nation’s sports bettors need to know about. Below is a breakdown of the key ways unregulated sportsbooks may increase the mental health risk faced by vulnerable sports bettors.
Disclaimer: Kindbridge Behavioral Health does not support or promote gambling in any way shape or form. However, since the federal government removed the ban on sports betting in 2018, it has become clear that public health is best served by delineating the differences between operators in the regulated market and those who operate outside of the law. In either case, if you or a loved one struggles with problem gambling, be it on the regulated or unregulated market, we are here to help.
3 Ways Unregulated Sportsbooks Increase Mental Health Risk Faced by American Sports Bettors
I. The Problem with Unregulated Prop Bets
Proposition bets (or “prop bets”) are already a contentious topic on the regulated market in the United States. Player props in the collegiate market are of particular concern, as it has come to light that disgruntled sports bettors are targeting NCAA athletes after losing wagers on them. This athlete abuse is partly the result of irrational anger that is a common symptom of problem gambling. As a result, the NCAA and other governing bodies are calling for an end to player props for collegiate sports. Whether or not this comes to fruition on the regulated market may be of little consequence, because illegal operators will continue to offer college player props. Does anyone think that an illegal operator who offers betting lines on the Little League World Series cares about whether or not college player props are morally sound?
But this issue regarding player props is beside the point. Illegal sports betting sites and apps are riddled with prop bets that are not available to Americans through the regulated market. These include political election betting odds (also a recently contentious topic), entertainment betting odds, and even odds on when the next weather event will devastate a given community. The no-holds barred offering of prop bets on the unregulated market compromises American mental health via the following:
- Unregulated props keep sports bettors gambling even when there are no sporting events to wager on. They are not given the opportunity to take a healthy break from their gambling behavior.
- Unregulated props encourage non-traditional sports bettors (including those who are vulnerable to gambling disorder) to get involved with sports betting platforms. This increases the overall volume of sports bettors in the United States. As the volume of sports bettors increases, the volume of problem gamblers (around 2% of the general population) increases, which strains the mental health system which cannot currently keep up with the rapid increase in problem gambling helpline calls.
For further insight, read more about the Problem with Prop Bets in the Unregulated Market.
II. Payout Risk and Problem Gambling Debt
There are two ways to look at this. For one, responsible regulated operators may be willing to work with banks and financial institutions to flag when a given customer is spending well beyond their means, and can intervene accordingly (when said customer has opted in). But this isn’t what we’re really referring to here.
Gambling debt is already an epidemic in America. Research shows that debt is an eventuality for most sports bettors because the house always wins. More concerning, is that gambling debt and suicidality are closely linked. So when we state that gambling debt is not just a financial crisis, but a mental health epidemic, we’re not being hyperbolic.
How is this any different for players on the regulated versus unregulated market? There is actually a defined problem. Given that the odds of coming out on top financially when sports betting are already slim, can you imagine how much more likely gambling debt could be if players were not able to withdraw their remaining funds? And what if they could not withdraw actual winnings when rollover requirements were met? This is something that occurs on the unregulated market. Below are screenshots of customer complaints from bettors who use popular online bookmakers from the unregulated market:
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These are just a few examples of unregulated bookmaker reviews, sites that thousands of Americans continue to use to bet on NCAA March Madness, the College Football Playoff, the NFL Super Bowl, and beyond. Since they are unregulated, there is no legal recourse for unfulfilled payouts and withdrawals Those who are already in debt from gambling and are feeling the related effects of anxiety, stress, depression, and suicidality may be thrust further down the hole when they can’t even recoup winnings or remaining funds from accounts.
III. Not Beholden to Responsible Gaming
To be blunt, Responsible Gaming regulations such as they are, are not enough to protect the millions of Americans who are vulnerable to problem gambling and cooccurring mental health concerns. However, select operators are going above what is expected of them to ensure that they foster a healthier customer base. For instance, FanDuel (view more), DraftKings (view more), and BetMGM (view more) have taken steps to connect players who struggle with mental and behavioral health to Kindbridge counselors. Critics may question any legal operator’s motivation for participating in such programs, but it’s better for the sports betting public when compared to going without these programs in place.
Meanwhile, unregulated operators are not beholden to already diaphanous Responsible Gaming measures, much less programs that offer problem players more robust support.
Note: If you have been using an unregulated site for sports betting, you may be concerned about self-incrimination when reaching out for help. Don’t be. Not only is there is NO cause for concern regarding admission to using unregulated bookmakers, your therapy sessions with Kindbridge are protected and confidential.
Concerned About Your Relationship with Sports Betting?
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