WHO Predicts $1 Trillion in U.S. Online Gambling Losses by 2028

The World Health Organization (WHO) has recently made a startling prediction: by 2028, the United States could see online gambling losses exceed $1 trillion.This projection has significant implications for public health, the economy, and regulatory frameworks. Let’s delve into the various aspects of this prediction, exploring the factors contributing to these losses, the potential impacts, and the measures that could be taken to mitigate them.

The Rise of Online Gambling

Online gambling has seen exponential growth over the past decade. The convenience of gambling from home, coupled with the proliferation of smartphones and internet access, has made it easier than ever for people to participate in online betting. In the U.S., the legalization of online sports betting and casino games in several states has further fueled this growth. As of 2024, seven states permit real money online casinos, including Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia.Additionally, online sports betting is legal in more than 30 states.

Factors Contributing to Gambling Losses

Several factors contribute to the projected $1 trillion in losses:

1. Increased Accessibility: The ease of access to online gambling platforms means that more people can gamble more frequently. This increased accessibility can lead to higher rates of gambling addiction.
2. Aggressive Marketing: Online gambling companies often use aggressive marketing tactics, including bonuses, incentives, and targeted advertisements, to attract and retain customers. These tactics can encourage excessive gambling behavior.
3. Lack of Regulation: While some states have legalized online gambling, many others have not, leading to a proliferation of unregulated, offshore gambling sites. These sites often lack responsible gambling tools and do not contribute to state tax revenues or problem gambling programs.
4. Psychological Factors: Gambling can be highly addictive due to the psychological mechanisms it exploits, such as the thrill of winning and the desire to recoup losses. This can lead to compulsive gambling behavior and significant financial losses.

Public Health Implications

The WHO’s prediction highlights the potential public health crisis posed by online gambling. Gambling addiction can have severe consequences, including financial ruin, mental health issues, and strained relationships. According to the WHO, around 16% of adults and 26% of adolescents who play online casino games are estimated to have a gambling problem.These figures are significantly higher than those for online sports betting, where 9% of adults and 16% of adolescents are estimated to have gambling problems.

Economic Impact

The economic impact of $1 trillion in gambling losses is profound. These losses represent money that could have been spent on goods and services, saved, or invested. Instead, it is funneled into gambling companies, often leading to financial instability for individuals and families. Additionally, the economic burden of treating gambling addiction and related issues, such as mental health problems and financial counseling, can be substantial.

Regulatory Challenges

Regulating online gambling presents several challenges:

1. Jurisdictional Issues: The internet’s global nature makes it difficult to regulate online gambling effectively. While some states have implemented regulations, others have not, leading to a patchwork of laws and enforcement challenges.
2. Enforcement: Even in states where online gambling is legal, enforcing regulations can be difficult. Unregulated, offshore gambling sites continue to operate, often without any oversight or accountability.
3. Responsible Gambling Measures: Ensuring that online gambling companies implement and adhere to responsible gambling measures is crucial. This includes tools such as self-exclusion programs, deposit limits, and reality checks. However, the effectiveness of these measures can vary, and not all companies may be motivated to prioritize them.

Potential Solutions

To address the predicted $1 trillion in losses, several measures could be taken:

1. Stronger Regulation: Implementing comprehensive regulations at both the state and federal levels could help mitigate the risks associated with online gambling. This includes licensing requirements, regular audits, and strict enforcement of responsible gambling measures.
2. Public Awareness Campaigns: Educating the public about the risks of online gambling and promoting responsible gambling practices can help reduce the incidence of gambling addiction. Public awareness campaigns can also highlight the availability of support services for those struggling with gambling problems.
3. Support Services: Expanding access to support services, such as counseling and treatment programs for gambling addiction, is essential. This includes providing funding for these services and ensuring they are widely available and accessible.
4. Research and Monitoring: Ongoing research into the impacts of online gambling and the effectiveness of various interventions is crucial. Monitoring trends in gambling behavior and losses can help inform policy decisions and identify emerging issues.

Conclusion

The WHO’s prediction of $1 trillion in U.S. online gambling losses by 2028 is a wake-up call for policymakers, regulators, and the public. Addressing this issue requires a multifaceted approach, including stronger regulation, public awareness campaigns, and expanded support services. By taking proactive measures, it is possible to mitigate the risks associated with online gambling and protect individuals and communities from its potentially devastating impacts.