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'It's the Wild Wild West' | Weighing the cost of sports wagering

In 2022, Tennessee received $69 million in tax revenue from sports wagering.

KNOXVILLE, Tenn. — On average, Tennesseans bet $1 million a day on mobile sports apps and websites. According to data from the Tennessee Sports Wagering Advisory Council, people bet more than $3.8 billion in 2022.

There's a year-over-year rise in popularity. The Super Bowl is set for Sunday, and the Associated Press predicts one in five adults will place some type of bet on the game. It has the potential to expose new people to gambling.

Lawmakers in Tennessee legalized online sports betting in 2019. The idea behind the legalization was to generate new tax revenue.

Dr. James Whelan, with the Institute for Gambling Education at the Gambling Clinic at the University of Memphis, said there are pros and cons to the legalization.

"The problem is it's kind of the 'Wild Wild West.' The rules are being made. The governments are learning how to regulate," Whelan said.

Upon legalization, sportsbooks were taxed on their income. According to the combined monthly SWAC reports, the sports wagering industry generated $69 million in tax revenue for the state.

Those tax dollars are split between education and local government. Also, Whelan said 5% of those dollars also go to gambling addiction prevention efforts.

"What's happened recently is the sports wagering bill set aside 5% of the state revenue to the Department of Mental Health and Substance Abuse Services," Whelan said. "$1.2 million last year."

Whelan said a big part of the growth and advertising for this industry is based on generating more tax dollars. However, some people who are more prone to gambling addiction could be caught in the middle.

"People who are preoccupied with gambling, preoccupied with the idea of gambling, they're really hanging on to the wish and dream and hope of a big win," Whelan said. "People notice it first when they are experiencing financial distress, they can't meet their bills or become late on payments."

Whelan has been doing research about problem gambling for around 20 years. Since the introduction of legal sports wagering, he's seen the client base for people needing help change.

"Our age of our clients has drifted from the average age being in the mid-40s to the average age now being in the low-30s," Whelan said.

He also said the gender split used to be almost half men and half women. Now, their outpatient services see a breakdown of about 65% men and 35% women.

Additionally, Whelan said more sports betters seek out treatment than casino-goers. But, Whelan said some sports wagering websites make an effort to mitigate that.

"On the major apps, they promote responsible gameplay," Whelan said. "There are options for doing things like regulating how much you're betting, taking a break, or tie restrictions."

Many of the mobile betting sites also have a dedicated page with resources for people who may be experiencing problem gambling.

If you or a loved one is struggling with gambling addiction, call 901-678-STOP to connect to a gambling clinic. That number will connect you with a local clinic.

"It is treatable. We know that if we have somebody come in and work with us for six to 10 sessions, they can gain control of their gambling, they can learn new skills, and they and learn how to get this managed," Whelan said.

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