The high cost of the U.S. sports betting boom

Data: National Council on Problem Gambling and the Economist. Chart: Axios VisualsTwo charts are going up and to the right at the same time: States are raking in tax revenue from sports betting and online casinos, and calls to the National Problem Gambling Helpline are on the rise.Why it matters: The data points to a troubling trend — America’s gambling boom is driving more people into financial and emotional distress, with young men at the epicenter. But the industry continues to expand at breakneck speed, powered by aggressive marketing, state budget incentives and AI.Zoom in: A number of recent studies spotlight the toll of sports betting — which is legal in some form in most states.In states with access to online gambling, bankruptcy rates rose 28% and debt collection amounts rose 8% — roughly two years after legalization, one paper found.Another study found that every dollar spent on sports betting shaved 99 cents off investments — meaning bettors are pulling from savings, not “fun money.”A third study tracked a 20% jump in mass-market alcohol consumption and a 75% spike in calls to helplines after legalization.Data: U.S. Census Bureau. Chart: Axios VisualsThe crisis is on display on college campuses, The Economist reports (gift link)."Staples of the young male media diet such as College Game Day ... now weave gambling odds into their segments. Other corners of the manosphere, such as Barstool Sports, the 'Pat McAfee Show' and Theo Von, form partnerships with sports-betting firms and offer promo codes."Colleges' mental health help centers are increasingly hearing from students — overwhelmingly young men — in distress after losing large sums of money in bets.An 18-year-old student at the University of Rhode Island told the Economist that he struggles to enjoy watching sports without the high of betting.Young men are also making risky bets on crypto, meme stocks and the prediction markets, The Wall Street Journal reports.What to watch: AI is poised to supercharge the gambling industry, says David Sasaki, a tech policy expert at the American Institute for Boys and Men.The technology can help sportsbooks fine-tune their odds — making them even less likely to lose. It can also figure out when users are most likely to place bigger or riskier bets, pinpoint who's prone to making bad ones and target them with ads at their most vulnerable moments, he says.The bottom line: "It's all part of a bigger trend," says Sasaki, "the gamblification of the financial life of young men.""There's a lot of anxiety, and betting is an escape, but it's also a hope and a dream" of striking it rich and attaining the glamorous lifestyles that young people see nonstop on social media but can't picture for themselves.