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With Problem Gambling Awareness Month nearing its end, North Carolina’s bid to legalize online sports betting got bolstered this week as HB 347 cleared the House. The bill now moves to the North Carolina Senate.
Dr. Michelle Malkin was among many interested observers in the Tar Heel State. Malkin, an assistant professor at East Carolina University, also serves as Vice Chair for the National Council on Problem Gambling’s Research Committee.
Malkin’s research has discovered that North Carolina already has a high rate of problem gambling, even before the advent of legal sports betting in the state.
“There’s nothing wrong with individuals who can gamble in a healthy way,” Malkin said. “The problem is we know in this state that almost 5% will cross over into problematic gambling.”
Malkin is currently conducting a UNC system-wide study of gambling behavior risk to see what levels of participation already exist at 12 of 16 campuses throughout the state. Malkin noted the importance of having a baseline before legalization occurs, which she anticipates happening in the next couple of years if not this year.
How Prevalent is Problem Gambling Across the US?
Research done by the National Council on Problem Gambling (NCPG) has found that most adults who gamble can do it responsibly. That said, NCPG offers some eye-popping statistics on problem gambling:
- 2 million U.S. adults (1%) are estimated to have severe gambling problems in a given year.
- Another 4-6 million (2-3%) have mild or moderate gambling problems.
- NCPG estimates the annual national social cost of problem gambling at $7 billion. This includes gambling-related criminal justice, healthcare spending, job loss, bankruptcy and other factors.
Malkin said it’s difficult to compare states because the different timing of prevalence studies makes things complicated. The current range for problem gambling is .05%-8.8%, according to Malkin.
North Carolina fell roughly in the middle of that range (5.5%) when the study was released last September. Will it be better to have licensed and regulated sportsbooks in North Carolina (NC) as opposed to gray market operators beholden to no regulatory body?
“Ensuring people are engaging in legal and regulated gambling is better than an illegal (industry) for a variety of reasons, but we still need to have the resources needed to combat the problems that come with that,” Malkin said. “What we don’t have yet are the resources needed to handle that, and ensuring every person has access to free counseling.”
She added, “Gambling disorder has the highest suicide rate of any addiction. Almost one in five individuals will attempt suicide as a result of gambling addiction.”
How Will Sports Betting Legalization Affect North Carolina?
Malkin has monitored trends in other states after legal online sports betting was introduced. North Carolina can expect to see some or all of these developments post-legalization.
- Having resources in place will be critical, as “calls to problem gambling hotlines increased substantially just within the first couple of months of the new legalization.”
- The deluge of commercials and welcome offers by commercial sportsbooks will normalize gambling in the state. “We anticipate a larger number of individuals in that emerging adult group engaging in gambling in a way that’s been normalized.”
- New records will continue to be established for online sports betting. “We’re seeing record-breaking numbers in Ohio for individuals engaging in this, and some for the very first time, so we know that a new group of people is engaging in a new form of sports betting utilizing their phone for the first time.”
Gambling-Motivated Crimes Will Potentially Rise
The case study of NHL star Evander Kane provides a harrowing look at the potential effects of gambling addiction. Kane admitted to making 50 bets a day and borrowing $50 million to cover gambling debts during his bankruptcy trial. It’s counter-intuitive to call Kane fortunate, but he was in at least one respect.
“A pro athlete has lots of access to legal money,” Malkin said. “Their likelihood of committing a crime goes way down. But for the average Joe, at some point, they’re going to run out of those legal avenues.”
Malkin specializes in gambling-motivated crimes, which can surface when someone goes from at-risk betting to problem gambling. Desperation sets in when the rent or mortgage can’t be paid. This is commingled with the fear of a spouse or employee finding out about the gambling disorder.
“They get to the point of total desperation and fear and shame and guilt,” Malkin said. “It comes to a point where they become a statistic.”
This is when gambling-motivated crimes like embezzlement, theft, fraud, bank robberies, and using counterfeit money are often committed. Many problem gamblers will then chase losses to replace the ill-gotten money.
“I call it the Gambler’s Fallacy because truly that next big win is the answer to all of their problems, but there’s never a big enough win,” Malkin said. “We only know that after we go into recovery. Once somebody is seeking help for gambling, research consistently shows over 50% would have committed a gambling-motivated crime.”
In Need of Diversion: Treatment vs. Incarceration
After Nevada became the first to implement a Diversion Court, many states including New Jersey are now pursuing them to evaluate gambling-motivated crimes and provide treatment as an alternative to incarceration.
Malkin is a big proponent and evaluates Nevada’s Diversion Court in Clark County on an ongoing basis. She noted that diversion courts can help reduce recidivism rates by anywhere between 20-80%.
“People who get (treatment) turn their lives around in ways that are incredible,” she said. “When people get the help they need, and truly get it, they can live incredible lives and make up for all the harm they did in society.”
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