Former Democrat presidential candidate claims online sports betting “preys” on citizens
Andrew Yang, who founded the Forward Party in 2021, also urges states without legalized sports betting to refrain from launching regulated markets
Former Democratic presidential candidate Andrew Yang has called for a rethink regarding online sports betting regulation in the US, dubbing wagering as the “perfect storm” for men from lower socioeconomic backgrounds.
Yang, who ran in the Democratic Party presidential primaries in 2020, said the growth of sports betting since the fall of PASPA in 2018 had brought about negative effects, as he called for the US states that have not yet legalized online sports betting to ensure the situation remains that way.
Dubbing online sports betting “a new tax” that preys on vulnerable Americans, Yang implored states such as Alabama, Alaska, California, Georgia, Hawaii, Idaho, and Texas to refrain from launching legalized markets.
At the time of writing, 38 US states have legalized sports betting in some capacity since PASPA was repealed.
Yang, writing in Newsweek, outlined three key factors, including the financial impact on households, with reference to a paper by Northwestern University’s Scott Baker.
“One study showed that for every $1 spent on betting, households put $2 less into investment accounts,” Yang wrote. “You see more families overdrafting a bank account or hitting the limit on a credit card.”
He continued by citing how the risk of personal bankruptcy increases for those who participate in sports gambling.
Yang pointed to research from economists Brett Hollenbeck of UCLA and Poet Larsen and Davide Proserpio of the University of Southern California who claimed legalizing sports betting increased the risk of a household going bankrupt by 25% to 30%.
The businessman also addressed the impact sports betting has had on athletes, with gambling-related abuse from fans on the rise according, to a recent study.
Yang said: “Betting on sports online is a perfect storm for men in that it combines things we enjoy at a visceral level – sports, money, speed, risk – and thinking we know something that others don’t.
“It’s social, and it makes spending time on sports seem like a job that will pay you money. But what makes it such a powerful intoxicant also gives it the ability to ruin your financial life, your relationships, and your mental health.”
He concluded his opinion piece with a message to residents of states that are currently without a legal, regulated sports betting market, insisting it was for the best.
“I’m sure the companies are in your statehouses right now making their case. ‘It’s easy tax revenue and everyone else is doing it! It’s fun!’ But the facts are clear,” Yang added.
“Online sports betting is the equivalent of a new tax on Americans that preys upon vulnerable, low-income men in particular. It increases financial stress and emotional problems. It’s not what your citizens need.”
EGR North America has reached out to the American Gaming Association for a response.