Minnesota Examines Evidence of Sports Gambling Social Harm

Minnesota is somewhat keen to join a list of 38 states and the District of Columbia to have legalized and (mostly) launched their sports gambling industries in earnest.

However, Minnesotans are cautioned that they are likely to bear the brunt of sports gambling legalization, even if the state coffers secure an additional revenue stream.

Evidence Suggests Sports Gambling Causes Societal Harm

Among the social issues that have historically mushroomed in states that legalize sports gambling are such problems as lower credit scores, increased bankruptcies, and more debt sent to collectors.

Now, Minnesotans have a choice, argue the authors of multiple new studies presenting their findings during a Senate Finance committee hearing on Wednesday. UCLA professor Brett Hollenbeck has outlined the issues that may potentially impact the North Star State.

Professor Hollenbeck detailed serious issues that the population could face, drawing on publicly available data such as bankruptcies, car loan delinquencies, and other relevant data. Yet, Professor Hollenbeck is not the only voice of dissent in the state.

Scott Baker of Northwestern University has similarly presented lawmakers with a sobering picture of what the potential impact would be on the population. According to Baker, people who bet on sports are also likely to overdraw their accounts and have worse credit scores, as well as invest less than people who do not gamble.

These claims have already been borne out by other reliable studies, too, as sports gamblers tend to be ever-so-slightly financially worse than their counterparts who gamble less or don’t gamble at all.  Sports betting, argues Baker and his colleagues, simply leads to poor financial outcomes.

Another study indicates that sports gambling could lead to increased domestic violence, as per Emily Arnesen and Kyu Matsuzawa of the University of Oregon. Since the legalization of sports gambling, partner violence has risen by 9%, the researchers estimate.

This, however, won’t stay the hand of Sen. Matt Klein, who has been one of the industry’s most vociferous advocates, arguing that sports betting legalization may done right Although he has produced several draft laws over the past years, none has gathered enough momentum.

Another Attempt to Legalize Sports Gambling Coming to Minnesota

Now, Sen. Klein is hoping that a new bill he is planning for this year may finally make the cut. The senator’s bill will focus on creating a problem gambling helpline as well as introducing texts that specifically regulate gambling advertising and how companies may enact it.

Prop bets on college sports will also be prohibited, as a preemptive action of a broader trend in the United States. Sen. Klein is also confident that sports gambling legalization is the right way forward. The senator has argued that sports gambling is already happening and that it is down to the legislature to ensure that it’s done above board and that consumers are protected.

These arguments, reasonable as they are, may not sway lawmakers and opponents during the legislative session.