Sports betting in Missouri may cause gambling addiction spike

Sports betting legalization is often touted as a sure-fire moneymaker, while a rise in gambling addiction is often left out of the conversation.

ST. LOUIS — All of Missouri's major league sports teams are acting on a unified front for arguably the first time in the state's history. 

Their goal is to legalize sports betting in Missouri through an initiative petition, effectively cutting out lawmakers who have for years refused to fulfill the teams' wishes of signing betting bills into law.

The team coalition, led by the St. Louis Cardinals, said betting would be a boon for the state, generating "tens of millions" in tax revenue. In reality, legislators estimated the state would only receive between $7 million and $15 million in tax revenue yearly after legalization, while the teams rake in millions from sports betting company partnerships.

Recent research has found any state revenue boost from sports betting may come at the expense of people caught in a new wave of gambling addiction, worsened by an onslaught of predatory advertisements and at-your-fingertips accessibility.

The recurring problem of gambling addiction spikes after sports betting legalization

Numerous states quickly jumped at the opportunity to legalize sports betting in 2018 after a Supreme Court decision left legalization up to state governments.

Many of those same states are now reporting large increases in gambling addiction and calls to helplines, especially in states that legalized mobile sports betting.

New Jersey, which originally brought the case to the Supreme Court, is now reporting state residents' gambling addiction prevalence is . West Virginia, the fifth state in the nation to legalize, named March "Problem Gambling Awareness Month" in 2023 after a study found one in 50 residents faced gambling addiction. Rhode Island, the eighth state to legalize the practice, found the odds of developing gambling problems were 2.4 times higher in the state's sports bettors.

Sports betting tends to play on the worst aspects of gambling addiction, according to St. Louis University Psychologist Jeremiah Weinstock. So-called "risk-free" bets, when companies tell new bettors they will refund a few lost bets, are often used to hook individuals into the dopamine rush of betting. Bettors' ability to bet anywhere from a phone sets up a dangerous combination for those facing gambling addiction, Weinstock said.

"[Risk-free bets] frequently can be a lure or a sort of queue to come back as people bounce from one app to another app, back and forth, looking for deals they can get," said Weinstock, who has published numerous research articles on the psychology behind gambling addiction. "Accessibility is also a key component to developing any addiction, including gambling ... [mobile betting] is harder to stop versus a land-based casino where you have to get in and drive. Placing a mobile bet takes, what, 20 seconds?"

Missouri unprepared for potential gambling addiction spike

Weinstock said if the same spike seen in other states happened in Missouri, the state would be unprepared to deal with it. Missouri is one the lowest funders of gambling addiction resources in the nation, spending just two cents per capita compared to the national average of 37 cents per capita, according to a national survey.

On top of the lack of funding, Weinstock said Missouri's outdated system to address gambling addiction is hard to navigate for medical providers and doesn't incentivize the creation of more services.

"Even though we only spend two cents per capita, if you actually look at what Missouri spends dollars-wise, providers return money to [the Missouri Department of Health and Senior Services] every year," Weinstock said. "They're not even spending it all." 

Other states like Illinois and California have more robust funding and resources to combat gambling addiction, like having a large portion of gambling revenue go toward gambling addiction resources or allowing numerous medical providers to treat gambling addiction. That's not the case in Missouri.

Jack Cardetti, the spokesperson for the Missouri sports team coalition's campaign called "Winning for Missouri Education," said the teams have worked with the National Council on Problem Gaming to devise best practices for legal sport betting's implementation.

"When putting the ballot initiative together we incorporated feedback and comments from the National Council on Problem Gaming," Cardetti said. "Also, the initiative would require a minimum of $5 million per year in additional funding for problem gaming."

Given the risk, why are Missouri's pro teams so pro-sports betting?

Missouri's professional sports teams, in their most recent push to legalize betting, said their legal effort is focused on cracking down on "offshore gaming websites" and generating millions for Missouri education.

"We are united in our goal of supporting the legalization of sports wagering in Missouri in a reasonable, safe and responsible way that is good for our teams, our fans, our Missouri teachers and our other citizens of Missouri,” said Bill DeWitt III, President of the St. Louis Cardinals.

The teams, however, would also potentially gain millions in revenue from their own sports betting partnerships, while gambling on renewed fan interest driving viewers to stadiums.

FanDuel, recently named the official sports betting partner of MLB, would have access to sponsorship and partnership opportunities with the St. Louis Cardinals and Kansas City Royals. BetMGM recently extended its partnership with the NHL, and would have the opportunity to partner with the St. Louis Blues. The Kansas City Chiefs would have their pick of multiple sports betting companies like FanDuel, Caesars Entertainment and DraftKings, all of which are official NFL partners.

"My job is to drive revenue and manage the business," DeWitt previously told 5 On Your Side. "This is a new revenue category. So from that standpoint, it's important. And we've always tried to be very aggressive with our payroll, but obviously keeping in mind what's possible given our revenues."

It wouldn't be the first time that the teams and betting companies have worked together. The teams, along with the state's casinos, video gaming interests and sports betting companies, have conducted immense lobbying efforts in the state to legalize sports betting since 2018, to no avail.

If the teams do succeed, Weinstock hopes Missouri can learn from other states and use a large chunk of sports betting revenue toward gambling addiction services, resources and research.

"Overall, we know that people ... with depression, anxiety, any sort of trauma history, are at increased risk of gambling addiction," Weinstock said. "Hopefully, the law would continue to set aside more money for gambling addiction treatment."