As the legislature paused for its spring recess, two bills, HF 778 and SF 574, were making their way through committees on the House and Senate sides, respectively. The two bills embraced different approaches.
HF 778, authored by Rep. Zack Stephenson, would create two master mobile sport betting licenses. One would be held by a tribal entity comprised of members of the Ojibwe Indian tribe or an entity owned by the tribe. The second would be held by a tribal entity comprised of Dakota Indian tribes or an entity wholly owned by the Indian tribe, and include up to eleven mobile sports betting operator licenses. The proposed tax rate is 10% on sports betting wagers placed online through a website or mobile application. Any wagers made on Indian lands are not subject to taxation. As sovereign nations, they do not fall under the same regulatory obligations as state and commercial entities.
As the bill stands today, mobile sports betting would only be allowed for those 21 years old and older. Legalized activities would include athletic events, esport events, college sports events or other events approved by the commissioner. Events prohibited or not covered by this legislation include: horseracing (legal under separate legislation), esports or athletic competitions organized by elementary, middle schools and high schools, or any youth activity sport league or fantasy sports contests.
The types of betting allowed would include:
º single game bets
º futures bets
º teaser bets
º parlay bets
º over-under bets
º moneyline bets
º in-game betting
º proposition bets
º straight bets
º exchange wagering
º futures bets placed on end-of-the-season standings, awards or statistics
º any other bets approved by the commissioner
Tax revenue collected would be distributed to the following:
1. Ten percent to the Public Safety Commission Division of Alcohol and Gambling Enforcement to oversee regulatory actions
2. Forty percent towards the problem gambling programming — 20% to the Department of Human Services and 20% to the state affiliate of National Council on Problem Gambling (MNAPG)
3. Fifty percent to amateur sports grants to promote integrity and participation of amateur sports.
MNAPG successfully added comprehensive problem gambling prevention education as a part of a young athletes’ education. Currently, no prevention material on problem gambling is offered in the schools. This would at least open the door to reaching this impressionable group. Providing an early foundational understanding to the potential harms of gambling may help in preventing future problems.
MNAPG was also successful in adding esports and being named recipient of 20% of the tax revenue generated by sports betting. We were also able to add a provision to study all gambling behavior and experiences of those aged 18 to 35. This will shed some new light on how, why and where this vulnerable age group gambles and help shape future prevention materials.
Currently, under the future rulemaking process, there would be standards to address and prevent compulsive and problem gambling. MNAPG doesn’t find this statement satisfactory and contributed more language for responsible gambling best practices, advertising and consumer disclosures for further consideration.
SF 574, authored by Senator Roger Chamberlain, resembles earlier bills submitted in past sessions with minimal language about responsible gambling programs, any mention of esports or fantasy sports, and providing just 1% of tax revenue generated toward problem gambling programs, of which the state affiliate of NCPG would receive ½%. This is the current arrangement we have with charitable gambling tax revenue.
The proposed tax rate is 6.75%. In this bill, a sports pool operator license could be provided to a federally recognized Indian tribe or a group of tribes located in Minnesota for wagering that takes place on tribal land, to a class A racetrack, or to an entity that provides an electronic sports wagering platform through a website or mobile application. There are no limitations to licenses provided.
This bill would also provide some tax relief to charitable gambling.
There appears to be more favorable aspects to the House bill than to the Senate’s. There are still many hurdles to jump and, in all likelihood, once the bills are combined it’s anyone’s guess as to which items will remain. We’ll certainly know more by the time the summer issue of Northern Light goes to press.
Read the original article on The Basis website HERE
By Caitlyn Fong, MPH
The Professional and Amateur Sports Protection Act (PASPA), which previously outlawed sports betting in most of the United States, was repealed in 2018 by the Supreme Court. Since then, legalized sports betting has grown rapidly, with the majority of states having active legal sports betting or pending legislation to legalize sports betting. Some studies have suggested a link between sports betting and gambling harm. For sports bettors experiencing gambling-related harms, online communities can be a source of self-help information and mutual support. This week, The WAGER reviews a study by Mark van der Maas and colleagues that analyzed how posts in an online mutual support community for problem gambling have changed with the expansion of legalized sports betting.
What was the research question?
How did the volume and content of an online mutual support community for problem gambling change after the repeal of PASPA and subsequent expansion of legalized sports betting?
What did the researchers do?
The researchers collected posts from the r/problemgambling subreddit (a message board on reddit.com) from January 1, 2016 to December 31, 2020. Using interrupted time series analysis, they compared the number of posts per week before, during, and after June 1, 2018 (the first day that states other than Nevada were able to initiate legal sports betting programs).
The researchers also analyzed 558 original posts from 75 unique, randomly-selected days and all 17,041 post titles from the study period. They used thematic analysis to examine the content of the selected posts and the post titles for common themes.
What did they find?
From January 1, 2016 to June 1, 2018, message board activity grew at an average of 0.14 posts per week (see Figure). During the weeks immediately following June 1, 2018, there was an average increase of 24.2 posts per week. Following that jump in posts, message board activity sustained an increase of 0.79 posts per week, which is more than five times the pre-June 1 activity rate.
After June 1, 2018, it also became more common for posts to mention American major league sports, such as Major League Baseball (MLB), National Basketball Association (NBA), and especially the National Football League (NFL). During 2019 and 2020, posts were more likely to encourage sobriety or express worry about abstinence from gambling as the start of the NFL season approached and as the Super Bowl date neared.
Figure. Average increase in posts per week on the r/problemgambling subreddit from January 1, 2016 through December 31, 2020. Click image to enlarge.
Why do these findings matter?
The rise in number of posts and references to American major league sports indicate an increased need for treatment and support of people experiencing gambling harm, especially during the NFL season. Online mutual support communities might also be an effective way to encourage formal treatment as an option and provide relapse prevention strategies. However, people who are concerned about their gambling should also consider seeking professional help from clinicians or using evidence-based self-help resources, as some research has identified potential risks of help seeking in online communities, such as misinformation or triggering content.
Every study has limitations. What are the limitations in this study?
Most posts did not mention a specific form of gambling, so it cannot be determined whether the increase in post activity was due to greater exposure to or experience with sports betting. Reddit users tend to be younger and predominantly male, and only about half of them are based in the United States, so the study might not be representative of the United States population. As a result, the findings may also not be generalizable to people outside of the Reddit online community.
For more information:
Do you think you or someone you know has a gambling problem? Visit the National Council on Problem Gambling for screening tools and resources.
Cryptocurrency, or “crypto”, is a digital currency that can be used to buy goods and services, or be traded for profit, with similarities with day trading on the stock market. Day trading itself is similar to gambling in some ways, and many day traders are also heavy bettors. Crypto trading is emerging as a similarly risky gambling-like activity. This week, The WAGER reviews a study by Paul Delfabbro and colleagues that investigated the gambling and stock trading habits of sports bettors, cryptocurrency traders, and people who do both.
What was the research question?
How do gambling habits, problem gambling rates, and prevalence of stock trading differ between sports bettors, crypto traders, and people who do both?
What did the researchers do?
The researchers surveyed 543 participants who reported gambling on sports or trading cryptocurrency at least once per month during the previous year. An international sample was recruited from the online platform Prolific and participants answered questions related to their gambling habits, crypto trading, and stock trading. Participants also completed the Problem Gambling Severity Index (PGSI). Then, the researchers compared three groups of participants: (1) those who only gambled on sports, (2) those who only traded cryptocurrency, and (3) those who did both.
What did they find?
Individuals who reported both crypto trading and sports wagering were more likely to have engaged in casino card games, race betting, and slots than those who reported either crypto trading or sports betting. Compared to sports bettors and those who did both, participants who only traded cryptocurrencies were less likely to gamble on all activities. The cryptocurrency-only group also had the lowest rates of moderate risk and problem gambling. Individuals who engaged in both crypto trading and sports wagering had significantly higher rates of moderate risk and problem gambling compared to sports bettors (see Figure). Importantly, however, 9.5% of the cryptocurrency-only group scored above the threshold for problem gambling on the PGSI, which is higher than the general population estimate of 0.5-2.0%. Stock trading was most likely to be reported by those who both traded cryptocurrency and wagered on sports.
Figure. Comparing the percent of participants in each group based on activities engaged in at least once per month during the past year whose PGSI score indicated moderate risk gambling or problem gambling. The difference between groups was statistically significant. Click image to enlarge.
Why do these findings matter?
The results show that crypto trading on its own is associated with increased problem gambling risk. Trading cryptocurrency also appears to amplify the risk of gambling alone, with those engaging in both activities most likely to experience gambling-related problems. Additionally, researchers have raised concerns that crypto trading has addictive qualities. Trading cryptocurrency is popular among gamblers, and should be incorporated into problem gambling screening and assessment protocols.
Every study has limitations. What are the limitations in this study?
This study was cross-sectional, so we cannot conclude whether trading cryptocurrency causes an increased risk for problem gambling or whether those already experiencing problem gambling have a greater inclination to engage in crypto trading. The study also relied on self-reported data, so participants might have under- or over-reported their actual gambling and/or crypto-related behaviors.
For more information:
Do you think you or someone you know has a gambling problem? Visit the National Council on Problem Gambling for screening tools and resources.
The National Football League (NFL) will be launching an extensive, integrated league-wide responsible betting public awareness program designed to educate fans who choose to engage in sports betting to do so responsibly. The key message encourages people to play responsibly by sticking to a game plan, including setting a budget to know their limits, using licensed, regulated operators, and asking for help if they need it. The core message of the campaign’s creative is “Stick to Your Game Plan. Always Bet Responsibly.”
As part of this initiative, the NFL has made a multimillion-dollar, multi-year commitment to significantly expand its long-standing partnership with the National Council on Problem Gambling (NCPG). The NFL’s funding will enable the NCPG to launch a national grant program to fund enhanced services offered by local and statewide providers, as well as innovative prevention programs, including expansion of youth-facing curricula. The league’s support will also transform the national problem gambling helpline system and allow for the development of improved communications tools, including a new website, www.responsibleplay.org, that will provide the public with quick tips about betting safely and support resources for those in need.
“The National Council on Problem Gambling is pleased to partner with the NFL to shine a light on the importance of responsible betting,” says Keith Whyte, executive director of the NCPG. “With this partnership, we are able to exponentially enhance the NCPG’s ability to provide advocacy, awareness and assistance on problem gambling. The NFL’s far-reaching initiative demonstrates its strong commitment to being an industry leader in raising awareness. The league’s support of our advocacy efforts will help fund new communications initiatives, such as ResponsiblePlay.org and a PSA about problem gambling, expand gambling prevention services where they are most needed, and modernize our National Problem Gambling Helpline operations with updated capabilities.”
The NFL is providing support to upgrade the National Problem Gambling Helpline system by raising criteria, improving call center technology, data collection, reporting, training and certification. A national helpline is crucial for prevention and safety, as well as connecting callers automatically with the appropriate state call center.
In addition to supporting impactful programs such as the helpline, NFL contributions will provide a wide range of additional benefits, including:
• Critical investment in the foundation of a national safety net to prevent gambling addiction.
• Providing agility grants to state NCPG affiliates, nonprofits or other community organizations that can implement innovative problem gambling prevention programs in their local communities.
• Ongoing initiatives such as the league’s awareness and education marketing campaign to help fans and the public understand and use responsible betting techniques, and know where to get help.
Facebook is expanding its offerings to include free predictor fantasy sports and other types of fantasy games, a move that troubles problem gambling advocates who see such games acting as a primer to sports betting.
The company on Wednesday launched Facebook Fantasy Games on the Facebook app in the U.S. and Canada, allowing users to make predictions on sporting events and TV shows. As part of the new daily sports prediction games, users will have be able to set their own leagues.
Facebook also announced partnerships with Whistle Sports, Major League Baseball and LaLiga Santander, Spain’s top soccer league.
The first game to launch is Pick & Play Sports, in which users score points for correctly predicting the winner of a game, the points scored by a top player or specific events that unfold during a game. Players can earn bonus points for building a streak of correct predictions over a series of days.
In a blog post announcing the new free-to-play games, Facebook did not address whether players would be able to redeem their points for prizes, including cash.
If the company were to offer cash prizes, Facebook’s predictor games would be in the same category as Fox Bet’s Super 6 game, where players try to choose the winners of six weekly National Football League games, and PointsBet’s Premier League predictor game in partnership with NBC Sports, in which viewers try to pick the outcome of five soccer games.
Daniel Fletcher, project manager of entertainment with Facebook, said the company will release additional games in the fall linked to popular television shows, such as CBS’ Survivor and ABC’s The Bachelorette, as well as contests for Major League Baseball and LaLiga.
For each slate of games during the LaLiga season, fans will predict a single team that will win on that day. Fans will try to build the longest streak possible of correct predictions, but they cannot pick the same team twice during a streak.
“These games bring the social fun of traditional fantasy sports to simpler formats that are easy to play for people new to prediction games, while still engaging enough for more seasoned players,” Fletcher said in a blog post.
Facebook’s decision to launch free-to-play predictor fantasy games was met with some concern from problem gambling advocates.
Keith Whyte, executive director of the National Council on Problem Gambling, said he believes there is some risk of future problems with free-to-play and predictor games.
“I imagine they are targeting a younger audience, but this could be a case that because there is no money exchanged, they don’t understand or appreciate the potential harm that it could be creating,” said Brianne Doura-Schawohl, vice president U.S. policy and strategic development with EPIC Risk Management.
Susan Sheridan Tucker, executive director with the Minneapolis-based Northstar Problem Gambling Alliance, said the group would be looking at Facebook’s new product “with a careful eye.” “
At first glance, it looks like they are trying to bring friends together to compete amongst themselves,” Tucker said. “For most this could be considered harmless fun and a way to connect.”
However, Tucker said these games are designed to keep the player engaged for as long as possible.
“There may not be gambling involved at first, but the loss of time engaging in the physical world as opposed to the virtual world is troubling,” she said. “These games can act as primer to sports betting later on.”
“I didn’t notice any age limitations set for this platform. By making the games less complicated, it will likely attract a new base of players. Again, this could act as a primer for future sports betting.” “
Yes, there is reason to keep watch on these apps,” Tucker said.
The addition of fantasy games is expected to help Facebook increase the time users spend on its platform as the company faces increasing competition from TikTok and Twitch.
Currently, TikTok bans the promotion of gambling-related content and earlier this month, Amazon-owned streaming website Twitch banned the sharing of promotional links and referrals to gambling sites.
In January, Twitch launched a virtual currency betting system for its users worldwide, allowing viewers to place bets on in-stream events, including online casino games.
The feature, Channel Points Predictions, gives streamers the ability to “let viewers guess your destiny” by designating an event in-game and defining two possible outcomes.
Viewers wager their virtual currency — known as Channel Points — on these outcomes, up to a cap of 250,000. Viewers who predict correctly win a proportionate share of Channel Points from the total pool.
Predictions are disabled in several jurisdictions globally, however.
According to Twitch, the feature is not available to viewers in Denmark, Luxembourg, Netherlands, Philippines, Poland, Quebec, Singapore, Sweden, South Korea and Turkey due to “legal restrictions.”
The following is taken from the National Council on Problem Gambling:
This report on recent research suggests that gambling problems may increase as sports gambling grows explosively at the same time that mobile and online technologies evolve to create seemingly unlimited types of wagering opportunities. Here are important highlights from a special review of more than 140 studies and reports on the connections between sports betting and gambling addiction.
Sports Betting and Online Gambling: A Potentially Volatile Mix
The rate of gambling problems among sports bettors is at least twice as high as among gamblers in general. When sports gambling is conducted online, the rate of problems is even higher, with one study of online sports gamblers indicating that 16% met clinical criteria for gambling disorder and another 13% showed some signs of gambling problems.
Concerns About Modern Sports Gambling
Nearly half of American adults have bet on a sporting event. More and more are betting online, with 45% of sports wagering now taking place on the internet. Today’s online sports betting is particularly concerning for several reasons:
Access: internet gambling is available virtually all the time. – It’s more convenient and provides more privacy. – Early research shows that those who bet using mobile devices have higher rates of problem gambling.
Live “In-Play” Betting: today’s sports gamblers can bet on much more than just the winner of a game. – Sports gamblers can bet — during the game — on hundreds and potentially thousands of discrete events. Any aspect of a team or player’s performance or activity that can be measured is now a potential wager. – This shortens the lag between bet and reward, increasing the speed and frequency of gambling, which increases the risk of problematic behavior.
Professional Athletes Frequently Gamble on Sports
Sports gambling is widespread among professional athletes. While no study of gambling among U.S. professional athletes is publicly available, such studies have been conducted elsewhere. One recent European report showed that 57% of professional athletes surveyed gambled on sports in the previous year, with 8% exhibiting problem gambling behavior, roughly three times greater than the general population.
Youth are at Higher Risk
Data from 2018 shows that more than 75% of students gambled. This is a big concern given the risk-taking behavior that takes place in adolescence and young adulthood, along with gambling being more socially acceptable and glamorized. More than 13% of adolescents wagered money on sports teams according to a study in 2017. Students most often bet on professional football and college basketball. Youth gamblers have higher rates of gambling problems than adults. Males are far more likely than females to both gamble on sports and to experience gambling problems.
Popularity and Growth of Fantasy Sports Gambling
From 2004 to 2018, participation in fantasy sports gambling quadrupled — from 14 million to 57 million. Higher fantasy game participation is associated with significant increases in problem gambling severity.
The Profile of a Sports Bettor
Heavy sports bettors who meet the criteria for clinical gambling disorder are typically male, young (up to age 35), single, fully employed, and have a high level of education. They think sports gambling is more skill than luck, suggesting they’re prone to distortions in thinking. They affiliate with others who favor sports betting, frequently taking advantage of different types of promotions, and are generally highly impulsive.
Marketing Inhibits Ability to Stop Gambling
Aggressive promotions in all forms of marketing and advertising make it more difficult for sports bettors who are trying to curtail their gambling. Ads that emphasize ‘free play,’ tout the ease of placing a bet, or offer risk-free bonuses are particularly problematic.
Looking Ahead
Sports gambling is growing rapidly with significant potential to create or worsen gambling problems. Twenty-three states to date have legalized sports betting. Moreover, it’s clear that substantial prevention and treatment efforts need to be developed and targeted to those most vulnerable to developing an addiction through sports gambling.
The review was conducted by Jeffrey Derevensky, PhD, and Ken Winters, PhD in the autumn of 2018. The full report, A Comprehensive Review of Sports Wagering and Gambling Addiction, is available here.
