Warnings amid boom
Two standalone reports within a day of each other have revealed the darker side of US gambling amid its continued rapid growth.
illegal sportsbooks and illegal online gaming sites are still prevalent.”
On Thursday, the FBI issued a public service announcement warning US bettors about the pitfalls of illegal gambling. The Bureau made reference to legal sports betting being available in 39 states, but stated “illegal sportsbooks and illegal online gaming sites are still prevalent.”
The FBI warned that the illegal platforms have “significant consequences” for the US economy, sports betting integrity, and the public. The body cited an American Gaming Association estimate that Americans bet $673.6bn annually in illegal and unregulated markets “which includes sports betting, online games, and unregulated machines.”
A day before, meanwhile, the Journal of Sports Economics published a new study claiming that legal sports betting is behind a significant spike “in violent and impulsive crime on game days.”
Betting berserkers?
The study by the University of Michigan and Rice University claims that “overall crime increases by 30% to 70% from kickoff through several hours after games in legalized states.” The study’s authors claim that legalized betting may “amplify emotional stress surrounding games” making reactions to victory and defeat more intense.
Under the crime spike, assaults account for the biggest rise, up by 93%. The figures come from crime data analysis from the National Incident-Based Reporting System between 2017 and 2021.
evidence of increased crime associated with stressful games”
Research leader, University of Michigan’s Assistant Professor of Kinesiology Wenche Wang, said the study found “recent evidence of increased crime associated with stressful games, such as those with close or tied scores throughout as well as games that extend into overtime.”
The study said the crime spike was also highest at home games, with the emotional reaction to an “underdog win” a big trigger. Co-author of the study Rice University’s Assistant Professor of Sport Analytics Hua Gong summed up that while sports betting “is exciting for fans and financially attractive for states” it can also lead to a rise in crime.
Bettor responsibility
The FBI’s public announcement also warned of the crime risks faced by the betting public, stating that “bettors who wager with illegal bookmakers put themselves at risk of extortion and violence if they are unable to repay debts.”
The Bureau added that using illegal channels can “also lead bettors to other criminal activity, such as tax evasion and money laundering, due to the illicit nature of the financial gains.”
The FBI ended by warning it was “each bettor’s responsibility to play with a licensed and regulated sportsbook operator.”
