I do not watch a lot of sports on television, live-stream or in person – the one exception: the Tampa Bay Lightning hockey team. There was a transitional exception during the recent NCAA basketball tournament, men’s and women’s. After all, one had to catch at least a glimpse of Caitlin Clark. But whatever the sports event, one can not help but notice the preponderance of sports betting advertisements. It is estimated that people watching NBA, NHL and MLB events are exposed to online gambling messages — including betting company logos, commercials, sponsored segments and any time betting odds appeared on screen – as much as three times per minute, but generally at 1.5 to 2 times per minute. The majority of the on screen appearance are courtside and rink logos and company names.

Six years ago, sports betting was illegal under federal law. In 2018, the Supreme Court struck down a federal ban, concluding that it violated states’ rights. Thirty-eight states and the District of Columbia now allow gambling on games.  Combine this with previous Supreme Court rulings that protect advertisements under the First Amendment (as long as not deceptive or misleading), we have a business opportunity for marketing and use of sports betting apps – and the means to convince people to gamble.

The recently concluded NCAA basketball tournaments saw an explosion of online betting with more than 3 billion dollars wagered. Estimates of online betting for all of 2023 are estimated at slightly more than 10 billion dollars. One can only imagine what the 2024 totals will be. At this moment it is hard to imagine what constraints will arise from state legislatures.  Since online sports betting was implemented in New Jersey (2018) it has produced $506 million in tax revenues for the State. New York has garnered over $1 billion.

What about the sports betting companies? FanDuel and DraftKings have emerged as the biggest players so far. They boasted market shares of 39 percent and 39 percent respectively as of October 2023, when BetMGM’s share stood at 10 percent and Caesars Sportsbook’s was six percent. This was before the entry of Disney/ESPN’s Bet which is present in only 17 States – and given its market access, can be expected to grow. But are these companies profitable? Surprisingly, not yet. This is largely due to intramarket competition, expansion into new States, and market positioning for the remainder of states expected to legalize online sports betting.

It has taken a lot of investment for FanDuel and DraftKings to get to where they are today, which has seen both companies accrue significant losses along the way. FanDuel, which is considering listing on the US stock exchange, expected 2023 to the be the first time it reaches full-year profitability, while DraftKings posted an operating loss of US$69 million for the second quarter – albeit a marked improvement on the US$309 million for the same period in 2022.

That’s the industry. But what about regular people? If you’re like many people, then you are a fan of professional or college sports. Sports are an important outlet to express city or school pride, a welcome diversion from the ordinary of life, and they help us feel a sense of belonging to something greater than ourselves. But always keep in mind that office bragging rights from winning the Super Bowl office betting pool, is a different beast than the mega-business of online sports betting. There is a lot of truth to the old saying, “The house always wins”. The entire business model produces more losers who lose more money than the cash the smaller number of winners walk away with. The gambling industry wouldn’t be profitable otherwise.

There are public health concerns involved with sports gambling. The National Council for Problem Gambling reports that 2.5 million U.S. adults (1%) are estimated to meet the criteria for a severe gambling problem in a given year. Another 5-8 million (2-3%) would be considered to have mild or moderate gambling problems; in other words, they do not meet the full diagnostic criteria for gambling disorder but meet one or more of the criteria and are experiencing problems due to their gambling behavior. Some argue that it is better to have sports gambling “above board” where it is more visible, and legal to eliminate the more destructive elements of the game. While DraftKings might not have goons ready to break your legs over unpaid debts, there are plenty of banks to repossess your car and landlords to evict you. It is estimated that a significant proportion of gambling revenue (between 15 and 40%) is derived from problem gamblers.

But where is the moral compass pointing in all of this?

According to the Catechism of the Catholic Church, gambling itself is not inherently sinful. However, the morality of gambling depends on the intentions, circumstances, and consequences involved (CCC 2413). The Catechism goes on to state that “games of chance or wagers are not in themselves contrary to justice” (CCC 2413). Therefore, participating in gambling activities, such as playing the lottery or engaging in games of chance, is not inherently sinful.

However, the Catechism also emphasizes the importance of responsible gambling and warns against the potential dangers associated with it. It states that “the passion for gambling risks becoming an enslavement” and that it can lead to the loss of material goods, addiction, and neglect of duties (CCC 2413). In addition, the Catechism highlights the need to consider the impact of gambling on the common good. It states that “the economic gain is at the expense of others” and that gambling should not become a means of exploiting the less fortunate (CCC 2413). It acknowledges that gambling can be a legitimate form of entertainment and recreation when done in moderation and without causing harm to oneself or others (CCC 2413). However, it also highlights several factors that can make gambling morally problematic.

One of the concerns is the potential for addiction. The Catechism warns that the passion for gambling can become an enslavement, leading individuals to neglect their responsibilities and even resort to dishonesty or fraud to support their habit (CCC 2413). The addictive nature of gambling can have serious consequences for individuals and their families, affecting their financial stability, relationships, and overall well-being.

Moreover, the Catechism emphasizes the importance of the virtue of temperance in relation to gambling. Temperance calls for the moderation and self-control necessary to avoid excesses and to use legitimate pleasures in a balanced way (CCC 1809). Engaging in excessive or reckless gambling that leads to financial ruin, neglect of duties, or harm to oneself or others would be contrary to the virtue of temperance.

While gambling itself is not considered sinful, it is important to approach it with caution, moderation, and a sense of responsibility. It is crucial to avoid excessive gambling, addiction, and any actions that may harm oneself or others. Ultimately, the morality of gambling depends on various factors, including the individual’s intentions, circumstances, and the potential consequences involved.

What are the unintended consequences of the legalization of online sports betting? Hard to know but I suppose that someone will soon offer the over/under on some specific consequences. That is something for another day, but is something about which I will muse.

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