Experts in Minnesota have warned of the harms of potentially legalizing sports betting as the fate of the industry remains unknown in the midwestern state.
The state is the only one in the region where sports betting isn’t yet legal, but a new bill could potentially change that after years of discussions.
A new bill to create a regulatory structure for legalization has been a hot topic in the area for some time now, with a Senate hearing on Wednesday highlighting the potential dangers.
A number of researchers were present and were asked by Senator John Marty, who chairs the Senate Finance Committee, to share their findings on the impact of sports gambling on social and financial health in states that have given legal bets the go-ahead.
Bankruptcy and problem gambling: Minnesota debate continues
A professor from the University of California, Brett Hollenbeck, shared that in the states that have legalized online sports betting, the likelihood of bankruptcy increased by 28%.
In the working paper which was released by the professor and other researchers at the University of Southern California, the report states: “Our results ultimately suggest that gambling legalization does harm consumer financial health.”
Another study, which was led by a professor from Southern Methodist University, finds problem gambling increased in states that introduced online casino gambling alongside online sports gambling.
It also states: “The findings indicate that gambling policies that legalize OCG [Online Casino Gaming] increase tax revenue, irresponsible gambling, and gambling helpline calls significantly more than policies that do not legalize OCG.”
Not everyone has been against the legalization of sports betting though as Senator Matt Klein, DFL-Mendota Heights, will introduce another bill this year and promises strong customer protections to be put in place.
Klein was reported to have said in a WCCO interview: “One thing I would ask people who are opposed to it because of the public health risk is: Is it better that we currently have an illicit thriving market where there are no safeguards whatsoever about problem use or underage use?
“Or is it better that we legalize and regulate it and put in barriers to problem gambling and fund some treatment services for gambling?”
The debate around legalizing sports betting in Minnesota will likely continue in the state as they aim to come to a conclusion.
Featured Image: AI-generated via Ideogram
