Survey reveals rising concern over impact of sports betting

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2025/10/03: Survey paints Americans as increasingly negative on sports betting 2025/03/14: Japanese survey reveals more than 3 million gamble online illegally 2025/06/11: Survey bodes well for sports betting, Jefferies analyst says 2025/05/21: Athletes to be protected from negative prop bets, NCAA reveals

The Backstory

Why public sentiment is souring

Americans are growing less comfortable with easy access to sports betting, and recent data points help explain why. Surveys show rising anxiety about addiction, game integrity and the exposure of young people to wagering. Those concerns come after a string of betting-related scandals in pro sports and a rapid expansion of legal markets. While usage remains steady, attitudes are hardening. The backdrop is a maturing U.S. industry that has moved online, intensified marketing and leaned into in-play and prop bets that increase engagement — and, regulators fear, risk.

In this context, the past two years have delivered a clearer picture of what is driving the backlash. The broad outline: more people are worried about the social cost, athletes and officials are sounding alarms about harassment tied to proposition bets, and regulators are struggling to keep illegal offshore sites at bay. At the same time, investor research signals that product design — especially in-play wagering — is pulling bettors deeper into the apps. The tension between growth and governance is setting the stage for policy changes and enforcement actions.

Polling trend lines point down

National opinion has shifted. A Pew Research Center survey found that 43% of Americans now say legal sports betting has a negative impact on society, up from 34% in 2022, and 40% believe wagering negatively affects sports. Participation has not spiked — about 22% of adults report betting on sports, little changed from 2022 — but online betting is rising. One in 10 adults said they placed an online sports bet in the past year, up from 6% in 2022, a shift that amplifies concerns about access and frequency.

The change cuts across demographic and political lines, with sharp increases among younger men. Since the Supreme Court’s 2018 ruling, at least 38 states, the District of Columbia and Puerto Rico have legalized in some form. The legalization map has slowed, but the user experience has become stickier. That may be fueling the split screen in the data: steady participation rates paired with more negative views about societal impact.

Integrity pressures and athlete protection

As wagering moved closer to the field of play, sports bodies have responded. The NCAA recently added safeguards to its data distribution deal that target one flash point: negative props that can incentivize harassment. Under its extended arrangement with Genius Sports, the NCAA said sportsbooks cannot offer negative prop bets tied to college athletes if they want official data. The governing body has also urged states to restrict college prop markets and is monitoring online abuse of players.

The push follows reports of increased harassment linked to betting outcomes and state-level moves to dial back certain markets. Ohio’s governor called for a ban on specific prop bets after disciplinary actions in baseball. Inside college sports, the NCAA has leaned on compliance and education while asking regulators for more help. The new stance, outlined in the NCAA’s latest update, reflects a broader integrity campaign that has coincided with public opinion turning more cautious.

Product design is pulling bettors in

Even as regulators tighten some edges, the core product is evolving toward higher engagement. A June survey by Jefferies found that in-play wagering is gaining traction and could power handle growth regardless of whether more states legalize. In its analysis, in-play interest and parlay usage were rising, and bettors wanted more prop options. The findings, summarized in Jefferies’ take on in-play and prop trends, suggested DraftKings could benefit from that shift, with FanDuel and parent Flutter advantaged by parlays.

The mechanics matter for public perception. In-play bets and props create more touchpoints during games, which can drive time on app, push notifications and impulse decisions. Jefferies reported that 90% of surveyed bettors engaged with in-play actions like checking odds or considering a cash-out. That intensity supports revenue growth but may also feed the concerns captured in national polls — that ubiquity and speed can nudge casual viewers into more frequent wagering and amplify the emotions around wins and losses, including toward athletes.

Illegal channels muddy the market

The legal industry is not competing in a vacuum. The American Gaming Association estimates that illegal operators account for nearly one-third of the U.S. gambling market, costing states an estimated $15.3 billion annually in lost tax revenue. According to the AGA’s latest tally, Americans wager roughly $673.6 billion each year with offshore sites, unregulated skill machines and illegal sportsbooks, generating $53.9 billion in revenue for those operators. Illegal online casino play is the largest slice and has grown since 2022, while the illegal sportsbook share has shrunk as regulated books gain ground.

The stakes are clear for policymakers: the larger the illegal footprint, the less effective consumer protections become. As lawmakers consider limits on prop bets or marketing, the industry warns that clamping down too hard could send bettors offshore. The AGA calls for stronger enforcement against illegal sites while arguing that a robust legal market is the best shield for consumers. That tension — between tightening guardrails and preserving a competitive product — underpins current debates in legislatures and gaming commissions.

A global cautionary tale

Japan offers a snapshot of what happens when legal options are absent and awareness is low. A National Police Agency survey estimated that 3.7 million people have used offshore online casinos despite the practice being illegal, with spending exceeding JPY1.2 trillion annually. Strikingly, about 40% of those gamblers did not realize the sites were illegal. The findings, detailed in reporting on Japan’s illegal online gambling, underscore how offshore operators exploit language localization and targeted marketing to blur legal lines.

For U.S. regulators, the Japanese data reinforce two points. First, consumer education is critical, especially as offshore sites imitate the look and feel of licensed platforms. Second, enforcement needs to keep pace with cross-border operators that can pivot quickly to new domains and payment methods. The lesson aligns with the AGA’s push for coordinated crackdowns and with domestic concerns about underage gambling and addiction highlighted in U.S. polling.

Taken together, the polling, integrity moves and market analytics point to a recalibration moment. Public patience for missteps is waning even as product innovation accelerates. Sports leagues and the NCAA are testing targeted limits on the riskiest bet types. Investors still see growth in in-play, parlays and personalized markets. Regulators face a dual mandate: protect consumers and athletes while keeping the legal market compelling enough to compete with offshore sites. How they balance those aims will determine whether rising concern becomes lasting resistance or a prompt for a safer, more durable industry.