By: Dr. John Lovett
Some of Pinkston’s recent projects include research on sports fans and betting, and the trends are telling. Our policy expert, Dr. John Lovett, unpacks the rise of sports gambling and what new findings in social research reveal about its broader impact on society.
The NCAA Division I Administrative Committee is a few meetings away from deciding whether it will allow Division I athletes to bet on professional sports. Their decision will reflect a broader shift in how the U.S. views and regulates sports gambling – and how the legalization of it has affected arenas and Americans.
Over the past few years, sports betting has become more accessible than ever. Betting is now in the palm of your hand, with mobile apps and online platforms allowing Americans to place bets almost instantaneously and virtually anywhere.
But how has this affected American society and sports in general? What are the ramifications for athletes and bettors? In this blog, we examine research findings to gain a deeper understanding of the implications of sports gambling.
How It Started
In the 2018 case Murphy v. National Collegiate Athletic Association, the U.S. Supreme Court overturned the Professional and Amateur Sports Protection Act of 1992 (PASPA), finding it violated the Tenth Amendment. PASPA banned sports gambling1 in 46 states, and its overturning meant that states could now regulate sports gambling within their own areas.
The Supreme Court’s decision in Murphy would go on to revolutionize sports gambling. States viewed the change as an opportunity for increased revenue and quickly legalized it. This made room for both traditional casinos, such as MGM Grand, and daily fantasy sports-based companies, like DraftKings and FanDuel, to enter the betting game, leading to an explosion in online sports gambling. Now, sports betting is as easy as clicking a few buttons on a smartphone or laptop, promoting almost instant gratification – or rage.
The Aftermath of Murphy
Since 2018, millions of Americans have started wagering on sports, resulting in billions of dollars in revenue, with some of that money going to state governments (to the tune of $1.8 billion in 2024 alone), and the lion’s share to casinos ($13.7 billion revenue in 2024).
Overall, Americans have gambled more than $500 billion on sports since 2018, and during Super Bowl LIX alone, Americans gambled over $1 billion. But one group where it has been particularly prevalent is young men. Twenty-one percent of men under 30 said they placed an online sports bet within the last 12 months.
While the expansion of sports gambling beyond Vegas has generated increased tax revenue, it has created various consequences for both the gamblers and the athletes they bet on. Financial worries due to compulsive gambling, health concerns over stress, frayed relationships, harassment of athletes of all ages and outright illegal activity have led many to voice concerns that sports gambling has had negative repercussions on American society.
Financial Impact of Sports Gambling
One of the primary reasons states quickly legalized sports gambling, despite the warning signs, was to increase tax revenue. Currently, 39 states and Washington, D.C. allow online sports gambling according to the American Gaming Association, and tax rates vary widely across these jurisdictions. Nevada, for instance, taxes up to 6.5% based on monthly income, while New York and Oregon tax at 51%. This has considerably increased tax revenue, with New York receiving more than $1 billion in taxes from online sports gambling in 2024. This funding has since been allocated to various purposes, from general funds to education.
At the same time, the financial consequences for bettors have been significant. Some spend money that they either do not have or cannot afford to spend, leading to financial ruin. For example, researchers found that bettors are not gambling as a replacement for other entertainment purchases but instead drawing from their savings and retirement. This increased gambling is concentrated among those who are from predominantly lower-income households, who live paycheck to paycheck or already have debt. Research has also linked increased gambling to lower credit scores and higher rates of bankruptcy, along with higher levels of debt collection and auto loan delinquency.
Medical Impact of Sports Gambling
Central to social concerns about sports betting is the development of compulsive gambling. While some can simply place a bet and stop at will, for 5 million people – especially young men and boys – gambling becomes an addiction. For example, according to researchers at the University of California, San Diego, searches of the term “Am I addicted to gambling” have increased by 23% since the Murphy decision, with searches increasing more in states with sportsbooks, like Massachusetts and Illinois. For young men in particular, gambling has seen surges: nearly 1 in 4 men between 18 and 29 report gambling at least weekly. In addition, gambling in general can cause a dopamine hit in the brain similar to that of cocaine, which can linger whether you win or lose, making even more likely the potential to keep betting even if down big.
Gambling can have cross-addiction effects with other compulsive behaviors, like substance abuse. Its addictive effects can also seep into medical issues, including lack of sleep and heart issues stemming from stress, with one study finding problem gamblers 53% more likely to develop a heart condition than non-problem gamblers. In addition, 21% of high-risk problem gamblers have attempted suicide, according to one study.
Social Impact of Sports Gambling
The social effects of betting affect bettors and athletes alike. For bettors, gambling can fray relationships due to the impact their compulsive gambling has on partners.
For athletes, there have been a range of ramifications. Athletes regularly discuss their interactions with bettors who are upset with their play and tell them how it cost them money. For example, American sprinter Gabby Thomas discussed her experience with a bettor who followed and yelled at her during a meet in order to influence her performance so the bettor could win a parlay bet. Athletes are not the only ones facing these threats: former San Diego Padres manager Mike Shildt cited concerns about sports betting and death threats among the many reasons he decided to retire from coaching the Padres in October, 2025.
This harassment is not uncommon. A recent study by the NCAA found that 1 in 3 star athletes receive abuse, harassment and threats from bettors, while another NCAA study noted that about 12% of athlete cyberbullying is related to sports gambling. After sexual online harassment, sports gambling harassment is the second biggest reason for athlete cyberbullying.
The use of over/under bets, or prop bets, on individual players has also raised ethical concerns. Over/under bets refer to whether an athlete’s total score will be over or under a pre-agreed-upon value. These wagers are simple, increasing their popularity, but they have also made room for athletes to change the course of games.
While famous sports gambling scandals in the past revolved around teams conspiring to lose – as was the case with the Chicago White Sox during the 1919 World Series – or cutting down on the number of points to hit the team spread, the part of the game being influenced was team performance. But with over/under bets, individual players can manipulate team outcomes by limiting their playtime due to real or feigned injuries.
We have already seen cases where players, in concert with bettors, have manipulated over/under bets in an attempt to cash in on wagers. The most recent notable case is that of Jontay Porter, a two-way contract player2 for the NBA’s Toronto Raptors. Porter was accused of feigning illness to help associates win parlay bets. On March 20, 2024, his associates put up $80,000 in hopes of potentially winning $1.1 million, betting that Porter would underperform on his statistics in that evening’s game against the Sacramento Kings. Porter left the game early due to an alleged illness. DraftKings eventually flagged the bets, and subsequently, Porter was banned for life from the NBA and pled guilty to one count of wire fraud, for which he now awaits sentencing. Two Cleveland Guardians pitchers have been on administrative leave since July over suspicious betting related to specific pitches, while multiple athletes at San Jose State and Fresno State have had their NCAA eligibility revoked over manipulating bets in college basketball games.3
The Future of Sports Gambling
With increased attention to sports gambling concerns, there has also been increased pushback. According to a recent Pew study, a larger share of Americans – and in particular, young people – believe sports gambling is bad for American society. There has also been much pushback toward specific types of betting. Following the Jontay Porter case, the NBA required sportsbooks to stop carrying prop bets for athletes who were either on a two-way or 10-day contract. The NCAA has also pushed for the banishment of over/under bets.
But despite the recent increase in negative sentiments toward sports gambling, it remains a central part of sports coverage. Commentators regularly consult with gambling experts over lines and prop bets, and sports personalities offer their own branded parlays. ESPN BET also offers parlay bets linked to ESPN shows, such as Baseball Tonight and First Take. While advertising spending has decreased in recent years as the market matured, sports books still spent over $600 million in 2024 on ads. Teams in several states and localities also have sportsbooks either nearby or in the general vicinity of the stadium. For instance, Caesar’s Sportsbook opened the first in-arena sportsbook at Capital One Arena in 2021.
Gambling has also seeped into youth sports. Two offshore gambling firms – illegal to use in the U.S. – offered parlay lines for games in the 2025 Little League World Series, while research from the Aspen Institute found that after the 2018 Murphy case, 26% of youth in Mobile, Alabama played in a game that adults had gambled on.
Sports gambling has generated billions in tax revenue and contributed to substantial economic gains. But the unfavorable repercussions of sports betting on American society’s medical and social well-being are increasingly evident.
Notes:
1) Parimutel (pool-based) betting on horse racing, dog racing and Jai alai were exempted from PASPA.
2) Two-way contracted players in the NBA are players whose salary is determined by whether they are playing for the main team or for their NBA G League (minor league) affiliate. The team can move these players easily between the two depending on need and performance.
3) This is not just a post-Murphy or American phenomenon. In 2017, Wayne Shaw, a 45-year-old reserve goalkeeper for English football club Sutton United, was caught up in a gambling scandal involving food. Shaw, affectionately known as the “Roly Poly Goalie” due to his 320 lb frame and stature, was on the bench as Sutton played English Premier League power Arsenal FC in the Fifth Round Proper (Round of 16) of the 2016-17 FA Cup. Shaw, knowing that English oddsmakers had put 8-1 odds against him eating a pasty (a British turnover pastry) during the game, did so, leading to an investigation that ended with Shaw’s resignation from Sutton United, fines and eventual retirement.
