The rapid expansion of the online gambling and betting market in the U.S. has triggered a large-scale crisis. The primary driver of this situation is the development of pathological gambling addiction among Americans. Experts from the Public Health Advocacy Institute (PHAI) assess that the situation is no longer under control and argue that the industry requires regulation as stringent as that of the tobacco and alcohol sectors.<\/p>\n
To discuss solutions to the crisis caused by the massive growth of the gambling industry, world-leading researchers, public health professionals, and policymakers are gathering in Boston. Forum participants, including experts from the UK and Australia, are examining the negative trends that followed the 2018 U.S. Supreme Court decision to overturn the federal ban on sports betting. Today, gambling is legal in 39 states and Washington, D.C., which has increased addiction risks nationwide.<\/p>\n
The situation is further complicated by the record popularity of so-called “prediction markets” (such as Kalshi and Polymarket), where users place bets on political or cultural events. On Super Bowl Sunday alone, transactions on one platform reached $1 billion. Although critics view this as disguised gambling, these platforms are legally classified as “event derivatives.” This status allows them to offer services to individuals as young as 18.<\/p>\n
For further clarification:<\/b> Event derivatives are financial instruments that allow users to make a prediction (bet) on the occurrence of a specific fact, whether it be an election result, an economic indicator, or a cultural event. Unlike traditional gambling, they are legally classified as “financial products,” enabling companies to bypass strict gambling regulations and make their services accessible to a younger audience.<\/p>\n
Experts at the Public Health Advocacy Institute (PHAI) believe that the root of the problem lies not within individuals, but in the product itself. According to the organization\u2019s director, Harry Levant, it is essential to regulate product distribution, type, and access, as unregulated online gambling destroys families and endangers the future generation.<\/p>\n
In response to these challenges, the “Safe Bet Act” has already been introduced in the U.S. Congress, proposing the establishment of federal standards. The bill aims to restrict aggressive marketing, mandate financial checks for consumers, and ban Artificial Intelligence (AI) designed to incentivize players. According to an Ipsos poll, 40% of Americans support stricter regulations.<\/p>\n