Sports Betting: Risks & Ripple Effects Teach-Out

Through the experiences of Michigan and Massachusetts, gaming regulators David Murley and Mark Vander Linden discuss how states oversee sports betting and work to reduce gambling harm.

Takeaways: State Gaming Boards and Commissions

We have prepared a list of key points from the State Gaming Boards and Commissions interview for your reference:

1. U.S. sports betting is governed by a fragmented, state-by-state regulatory system. Following the 2018 U.S. Supreme Court Murphy v. NCAA decision, the federal government stepped back, leaving each state to design its own gambling laws, funding mechanisms, and consumer protections. State gaming boards and commissions now serve as the primary regulators, but their authority, resources, and priorities vary widely. This patchwork creates uneven protections for consumers and inconsistent approaches to harm reduction across the country.

2. State gaming commissions evolved with gambling, but mobile betting represents a fundamental break from the past. Historically, commissions were designed to regulate physical venues like casinos and racetracks. Gambling was location-based, slower, and easier to observe. Mobile sports betting upended these assumptions: wagers can now be placed anywhere, anytime, often without visible friction. Oversight frameworks built for land-based, brick-and-mortar gambling facilities struggle to keep pace with the speed, scale, and invisibility of online betting behavior.

3. In-play betting and prop bets intensify regulatory and public health challenges, as well as conflicts of interest. Micro-bets placed during live games exploit moments of excitement and emotional arousal, making it harder for individuals to make reflective decisions. These features increase betting frequency and risk while being politically difficult to restrict because they are highly profitable. This highlights a central dilemma: the very products driving state revenue are often those associated with greater harm.

4. Responsible gaming tools exist, but effectiveness depends on design and uptake, not availability alone. Deposit limits, time-outs, and self-exclusion programs are widely available and show promise when used by bettors. However, most bettors do not voluntarily engage with these tools. Massachusetts has invested in player-protection infrastructure—such as GameSense centers in casinos and budgeting tools—but translating these interventions into online environments remains a major challenge.

5. Prediction markets expose regulatory gaps that undermine state authority and consumer protections. Unlike sportsbooks regulated by state commissions, prediction markets often fall under federal oversight and operate in legal gray zones. This risks undermining state-level safeguards by allowing gambling-like activity outside established regulatory frameworks, including access for younger people. Regulators stressed that ongoing research and intergovernmental coordination are essential to prevent these emerging products from outpacing consumer protections.

Reflection Questions

In your daily life, you may have one or more than one of the following roles. Think about the questions that we have posed here. How can you use the State Gaming Boards and Commissions interview to respond to these questions?

• Public health professionals:
  • How might state-level data collection and funding mechanisms strengthen public health responses to gambling-related harm?
• Young adult casual bettors:
  • What protections exist where you live that could help you recognize or slow down risky betting patterns?
  • Have you ever noticed responsible gaming tools on the apps you use? What would make you more likely to set a limit?
• High school or college athletics professional:
  • How could state gaming commissions be partners in protecting student-athletes from betting-related pressure and harassment?
  • What conversations could you have with student-athletes about the difference between regulated and unregulated betting platforms?
• Parent or guardian:
  • What questions might you ask about how your state regulates sports betting and protects young people?

Additional Resources

1. Michigan Gaming Control Board
2. Massachusetts Gaming Commission
3. Social and Economic Impacts of Gambling in Massachusetts (SEIGMA)