Crisis in Connecticut: When sports betting goes bad
The legalization of gambling on sports has brought along its share of positives, but do these companies really have gamblers in their best interests?
Crisis in Connecticut: The Other Side of Sports Be
“The situation really put a strain on my relationship with not only my uncle but with my cousin as well. At the time, we weren’t able to take a family vacation that summer because of it. Once I found out why he could not pay back my dad years later, it became clear to me what had happened. My dad deserves better than that
Joe Korner is a father of two, resides in Norwood, New Jersey, and sends both of his children to Quinnipiac University. New Jersey was one of the early states to legalize sports betting back in 2018. Before the legalization however, gamblers would find other ways to submit their plays through off-shore bookmakers on illegal websites.
“I would always place a few bets (occasionally) with my cousin who enjoyed doing it more than I did,” Joe said. “He was more of a high-roller, while I stuck to whatever I felt like (betting).”
“Growing up, I don’t remember seeing my cousin (and my uncle) as often as I used to around the time I was in middle school,” said Matthew Korner, Joe’s son.
In the summer of 2012, Joe had lent $7,000 to his cousin to assist him with his son's college tuition for that semester at the Connecticut School of Broadcasting. When he discovered that his cousin had lost the money through sports gambling, their relationship took a massive blow.
“When I lent that money to him, I believed he had every intention of supporting his son through college and would be responsible enough to do the right thing,” Joe said.
“I never saw that money again,” Joe sighed as he shook his head. “Frankly, I felt betrayed. Our relationship will never be the same.”
Sports gambling has erupted over the past year making what was an underground, secretive, high-stakes hobby, one that can be accessed by millions across the country at the push of a button.
The U.S. Sports betting market was valued at $11.5B in 2021 and is expected to nearly double by 2030, according to Grand View Research.
The legalization of the multi-billion dollar industry to nearly two-thirds of the United States has allowed players to have skin in the game with their favorite teams. But the success of these sportsbooks comes with a price, paid at the expense of their customers.
Addiction, over-indulgence and poor budgeting has taken its toll on many participants in the past nine months -- and the demographic these issues concern may not be who you think.
Since its legalization, sports gambling has profited the states that allow it immensely.
As of Summer 2022, 26 states legalized sports gambling with Massachusetts set to become the 27th state later this year.
Connecticut saw its first legal wagers placed in October 2021, and in not even a year's time has collected $8,494,329 in state taxes. This number is expected to rise significantly, considering the revenue generated by other states who have legalized it longer.
Illinois, for example, began legal sports betting in March 2020 and has seen $142,641,746 in state collected taxes.
Accessibility to sports gambling has become easier than ever.
Virtual sportsbooks like DraftKings, FanDuel, PointsBet and a handful of other apps, allow a gambler to deposit cash from their bank accounts in seconds and be able to wager on sporting events ranging from the NFL to Australian tennis.
The sportsbooks are endorsed by celebrities like former NFL quarterback Drew Brees with PointsBet and golfer Jordan Spieth with FanDuel.
On the outside, the legalization of sports gambling seems to bring an entertaining new way for fans to be involved in sports while the states are able to make money off their own.
“I focus mostly on college football and stick to what I know,” said David Patalano, a recent college graduate who began gambling when New York State legalized it in January 2022.
“I’ve made one $100 deposit and I’ve been able to play around with that money for a while,” he said.
With such a wide range of sports to bet on, gamblers can sometimes place wagers blindly on teams or players that they may know nothing about.
“I see sports like cricket and NASCAR readily available to take action on, and those are two sports I really know nothing about…I can definitely see how people who are constantly depositing and losing would be chasing loses by taking a shot in the dark,” Patalano said.
“Gambling is more of a social habit for me. A lot of my friends (bet on sports) as well…it’s something we can bond over.”
These sportsbooks are catered toward men male aged 18-35 and have developed in depth strategies for marketing toward the demographic.
New customers are drawn in by the incentive if they were to bet $5 on any game, they receive $100 in site credit (DraftKings).
Another tactic that this specific app uses is its presence on social media, engaging with followers on their picks and opinions on different sports.
Here is an example of a tweet that would get someone scrolling their feed to switch apps to place a wager: DraftKings Sportsbook Tweet
In this case, someone who may not have been aware there was a Pay Per View UFC event now are more likely to place a wager of any size on a fight that they may or may not have had any knowledge about prior. A winning bet could then lead to continued gambling throughout the event which presents issues of its own.
Bookmakers create lines that will profit their book regardless of the outcome.
Let’s take an example from a regular season MLB game. The New York Mets are at -250 odds to defeat the Cincinnati Reds who are +200. What does this mean? Statistically speaking, the Mets have an implied probability of 71.33% chance of winning, leaving the Reds with only a 33.33% chance to win the game outright. These numbers add up to 104.76%, and with only two outcomes, making these odds unfair for the gambler. That leftover 4.76% is the bookmaker's potential profit on the game, regardless of the outcome.
On every matchup, these sportsbooks have built in advantages to ensure they cannot lose. As many books advertise they are "for the players," in reality they’re anything but.
Problem sports gamblers are also proven to be younger and more educated than those who struggle with casino gambling addiction.
Basing their wagers off of a team’s previous performances or trends creating a false perception that the outcomes can be predicted off of previous events. That gives gamblers a sense of confidence when choosing to place a bet which can result in large sums of money on the line.
The large sums could be life changing for gamblers who take it too far.
While sports gambling of the past has now been put in the rear view, the new age of instant gambling and payouts has led to an even more dangerous way for gamblers to get in too deep.
Studies have shown that those affected most severely by these new legalizations are actually college students ages 18-25.
“We used to think it was the little old lady at the slot machines (we’d receive calls from), but it’s (males in their 20s) and they’re gambling on sports,” said Diana Goode, Executive Director of the Connecticut Council for Problem Gambling.
The issues with problem gambling have become much more real in the recent months for those in the CCPG.
As the number of phone calls to their services increases exponentially, the council has been working around the clock to deliver the treatment they say they will provide.
“Within the last six months, we now have five people in rotation answering those phone calls, we also have a couple freelance people that if we need some coverage over the weekend, or something like that we have some hourly people that we can contact to help us out,” Goode said.
Members of the council have made it clear they are not there to tell people to stop gambling, but rather to do so in a healthy and controlled manner.
“When the phone rings you don't know who's on the other end so you have to be ready and prepared to answer that phone call like it's someone in crisis every single time,” Kaitlin Brown, CCPG's director of programs and services, said.
“Back in October and November our phone was ringing every other minute, it was really a struggle to keep up.”
Many parents are the ones reaching out on behalf of their adult children, and are the first to admit that there is a problem with their habits.
Making that first step to realize there is an issue and to take action towards it is something the council made note of. In some cases, however, some young adults are able to take that first step on their own.
“I received a call from a 20-21 year old kid , and I sat with him for 30 minutes. This was the first time he was saying (he had a gambling) problem out loud, and I think that’s powerful in itself. When the call was over he told me, ‘Thank you for being there for me. I don’t know who I would have talked to,’” Brownd said.
While the hotline provides only so much for their callers, it's getting people to know where to go that also presents a challenge in itself.
“At the end of every sportsbook commercial you see, in very tiny letters, viewers are directed to ‘call if they experience problems gambling,’” Goode said.
“This leads to callers who have trouble logging into their accounts or withdrawing, (etc.) and that’s not the reason we are here.”
Not only does the council seek to improve its way of advertising its service, but to get people to understand what is beginning here could be the start of something much more severe.
“(One area I think needs work is) the advocacy and getting people to understand that gambling disorder is just as problematic, as all of these other health problems, (we deal with all the time.) (People need to) understand that (gambling) impacts the brain the same way that substances do, even though you're not ingesting a substance,” Brown said.
Goode added,“Within addicted gambling it's just a matter of time and degree, and I wish we were smarter than that. I wish we looked at (this like the) opioid (crisis)... something we let go too far and now we’re picking up the pieces.”
At Quinnipiac University in Hamden, the sports gambling crisis has made its way into the lives of students, who sometimes find themselves spending more than they have to lose.
“(One of my) roommates was big into gambling this past year, (and let it) get too far sometimes,” Douglas Jaeger said.
From live bets that concluded almost instantaneously to casino games like blackjack and poker, all from mobile apps, have led students to lose touch with themselves and their bank accounts.
“There would be times where (my roommate) wouldn’t be able to come out to New Haven on weekends or go on weekend trips because of his habits,” Jaeger said.
“At first we saw it as kind of a joke but the longer it went on, the more I realized that there was a serious issue (that needed to be addressed).”
As gamblers ages 18-25 have begun to realize, gambling can be a slippery slope that can catch up to those participating perhaps before they realize it. What organizations like the CCPG strive to achieve is confronting these issues before they reach a boiling point. When asked how more attention would be brought upon the issue, Goode said:
“I think it's going to (take) some kind of real tragic horrible event and that and I don't know when that's going to happen.”
When it comes to problem gambling, those who struggle with addiction have seen the highest rates in successful suicides.
“I would love to do more training (with) middle school kids and high school kids about what gambling really is,” Goode said.
She stressed the importance of her council getting on top of the issue before things get out of hand, like we’ve seen with other crises before.
Reaching out to younger age groups who are not yet able to gamble could persuade them to participate in a way that is controlled and responsible.
Again, the council aims to promote safe gambling and not to completely do away with it in general.
“This is all a really new wave that kind of crashed all at once,” Jaeger said. “Every channel you watch, (or) billboards on the highway advertise free cash for deposits…I can see how a lot of kids (my) age could be overwhelmed.”
As we approach the year mark of legalized sports betting in the state of Connecticut, a large issue still looms overhead, with no signs of going away.
Setting up a plan of action is something that needs to be taken care of by the State in an effort to allow its citizens a healthy way to participate in the hobbies they enjoy, without profiting at their expense.
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