Gambling, Good for Sports?
Prop Bets and Yield Spreads: How Betting Shapes Our Sports Experience
2:00 minutes left in the Rams vs Lions game. Lions are down 3, and I’m fighting sleep to see who wins. The Lions are driving down the field. I’m rooting for the Lions wide-out St. Brown (who’s been quiet all game) to catch a touchdown pass for the win.
Why am I so invested? Because I’m a Lions fan? Because I hate the Rams? Because I was in Detroit last month? None of the above. My brother needed the Lions to make a clean sweep of his bets for the day.
My thoughts on sports gambling are complex. In the DSM-5 (diagnostic and statistical manual of mental disorders) sandwiched between substance-related and addictive disorders and neurocognitive disorders lies gambling disorder. Experts classify it as a non-substance-related disorder. Mesolimbic dopamine rushes through a gambler’s system, and sometimes, it occurs whether they are winning or losing. Two worst-case scenario cases are Shohei Otani’s interpreter stealing $16 million dollars from him and the case of Jacksonville Jaguar's financial manager stealing $22 million dollars and losing $20 million alone on a fan duel.
For those that further bemoan the evils of sports gambling, think about who your starting quarterback is in your or your partner’s fantasy football team this week. Fantasy sports generated $8.88 billion dollars in 2021. That figure was driven by over 50 million players as of 2022. In 2023, sports bookmaking generated revenue of $10.9 billion. That amount puts it ahead of the NBA, which had $10.6 billion in revenue for 2023.
For every bet placed, interest in a game will increase. Whether it’s total combined score, first fumble, or longest punt return, gambling provides enticement to watch and a method to increase interest in various outcomes. Increased interest drives increased revenue. There is no direct evidence that, since the 2018 Supreme Court decision to usher in the legalization of sports, gambling has resulted in more fans of sporting events. Although advertising was down to $210 for 2023, it is up tenfold from around $20 million in 2019.
Meanwhile, back to the game:
Montgomery with the one-yard rush for the overtime win. Lions win, and so does my brother.
If you suspect someone you know has a gambling problem, here are two resources that you can turn to:
National Council on Problem Gambling (NCPG) call 1-800-gambler
National Problem Gambling Helpline Network: ncpgambling.org/chat or call 800-522-4700 24/7
