The online sports industry is booming. Nearly $148 billion was wagered on sports in the U.S. last year, an increase of 23.6% over 2023.
However, as interest continues to rise, so too do concerns about the volatility of gambling and its addictive potential.
Online research for gambling addiction-related terms have grown exponentially in recent years across the U.S., according to a new study published by the UC San Diego Qualcomm Institute and School of Medicine. Researchers analyzing Google search trends found that queries for help – including "Am I addicted to gambling?" – had increased 23% nationally over six years since the landmark Murphy v. NCAA Supreme Court ruling in 2018, which paved the way for the legalization of sports betting.
Researchers also found a noticeable spike in states such as Illinois, New Jersey, New York and Pennsylvania, where legislation had passed.
While expansion continues in the U.S., with sports betting now legally operative in 38 states plus Washington, D.C. – Missouri is slated to become the 39th state this summer – experts worry about the lack of safeguards in place for consumers.
"I don't think that the industry or the legislatures, who are equally guilty here, have done nearly enough to prepare," John Holden, an associate professor in the Department of Business Law and Ethics at Indiana University's Kelley School of Business, told RG. "We know there's a percentage of people that can't do this.
"The No. 1 failure has been the lack of funding directed to the resources for those who experience harm [from problem gambling]."
A few measures are already in place, including betting limits, age limits, and self-enforced timeouts, but there's a feeling that operators need to do more. Authors of the study made several more recommendations to mitigate gambling risks, from increased funding for gambling addiction services to clinical training programs for health care professionals.
Holden, who has authored several books on the business and legalization of sports betting, said the anonymity of online betting creates a false sense of security for some players.
"[Gambling's] not anonymous, but the anonymous nature of being online, you aren't in a place where a person's watching you," he said. "There's concerns about that. ... The idea of putting more stuff online, it raises red flags for some people."
Americans bet a whopping $147.91 billion on sports last year, according to the American Gaming Association, with 95% of the wagers placed online. This resulted in a record $13.7 billion in revenue for operators.
Now a few months into 2025, there are no signs of the industry slowing down.
As more states push for legalization, Americans are still learning about the repercussions of gambling. In states like North Carolina, which launched last March, players might even be in for a surprise. Unique to the Tar Heel State, gambling losses cannot be claimed as an itemized deduction.
Consider it another reminder of the potential repercussions of betting.
"The concerns about the risk [of betting] surround the complexities of the tax law and how it differs on a state-by-state basis," Nathan Goldman, an associate professor of accounting at the Poole College of Management at NC State University, told RG. "Few taxpayers fully understand it.
"Taxpayers do not understand that they will owe taxes even if they do not receive a W-2G."
Amidst growing worries, the National Council on Problem Gambling is urging Congress to pass legislation that would provide new funding for gambling addiction treatment and research programs.
Doug Bonjour
