By Jonathan Cohen
The discussion about sports gambling since it has been legalized a few years ago certainly sounds familiar to many.
Do you remember how we heard about how state lotteries were going to provide valuable dollars for our educational system? Do you recall that Off-Track Betting in horse racing would tap in on money already being spent illegally and end up going to the greater good?
Those two areas have become a permanent part of our lives, of course. The problem is that they have come with a cost. Making it easier to gamble certainly has meant more people are gambling, and that led to more social costs affecting society as a whole. A percentage of gamblers - maybe not a big number, but some - are going to become addicted, and will ruin their own lives and the lives of others. You're probably heard stories about lower-class people whose retirement plan is to buy lottery tickets, where the odds definitely aren't in your favor. And gambling taxes are regressive in nature; they draw more money from the lower brackets than the upper.
The 2018 Supreme Court decision to allow wagering on sports events certainly has broadened the scope of gambling in our society. After all, many fans consider themselves experts on the subject of sports, and figure waging on outcomes should be easy. About one in five adults wagered on such fun games in 2023, and it's tough to go anywhere in the world of sports these days (in-person, television, etc.) without being bombarded with marketing messages from such companies as FanDuel and Draft Kings.
It's a good time, then, to take a look at what's going on right now. Jonathan Cohen has done just that in "Losing Big."
Cohen is well qualified for the job. He's written acclaimed books on lotteries and gambling. Here he takes a look at the small picture and the big picture, as both are important in telling the story in a sense. We learn about how states slowly embraced the concept of sports gambling in order to increase revenues - even though it's actually a regressive tax on the population, since the money paid into the system is skewed by the lower classes contributing a higher rate than the rest of the population. There are other costs as well, such as a high rate of suicides among problem gamblers.
There are stories here about how the gambling companies played a large part in drawing up the rules for such activities through lobbying. The NFL's attitude gets an examination; it's interesting how the league (and other sports leagues) were strongly anti-gambling before they became part of "the house" and thus profited from it all. One gambler offers something of a case study on what can go wrong here. There's also a chapter on how other countries are dealing with the excesses created by sports gambling.
Some of the stories along the way are quite interesting. Anyone who has been paying attention has seen how the sportsbooks are offering "refunds" to first-time gamblers if they lost that initial wagers. The benefits were so great, Cohen discovered, that the companies didn't have any profits to share with the states. Hmm. But in the long term, they lured some people in for keeps.
Cohen also has some idea on how to make the system work better. His list starts with the sportsbooks taking steps to protect the individual players from ruin. He calls for some national standards for the industry. a crackdown on illegal and foreign sports books, and more independent regulation and education programs.
I realize that when it comes to a discussion about the morality of gambling, the train has left the station. Everyone does it, and they are going to keep doing it. The Puritans lost that argument. But I don't particularly like what gambling has done to the games. It certainly feels like the level of cynicism among fans has increased, particularly among officiating. The use of "point spreads" in certain sports means that some people will be watching a game with a different approach than the usual main concept of winning and losing. In other words, my team needs to win by four points to make me happy, and not by one.
That doesn't include the obvious elephant in the room. There are going to be more and more fixed outcomes and scandals down the road. The pros at least are making enough money in many cases so that it would be hard to tempt them financially. But these days you can bet on such sports as college lacrosse, where temptation might land on more favorable ears.
Cohen's book is a little dry in spots (it's hard not to be considering some of the material), but it makes its points nicely and quickly. Think of "Losing Big," then, as an introduction to a serious subject that's not going away in the near future. It's going to be a bumpy ride.
Four stars
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