Alarming Florida Sports Betting Trend Just Revealed

A recent report from the Florida Council on Compulsive Gambling shows that The Sunshine State’s problem-gambling helpline has experienced a major uptick in calls since 2023. This timeline just so happens to coincide with the legalization and launch of Florida sports betting.

The Sunshine State technically first launched sports betting services back in 2021. However, due to a legal battle following a lawsuit filed by West Flagler Associates, operations were shuddered for an extensive period of time. After a lengthy series of rulings and non-rulings, sports betting in Florida resumed just before the start of 2024.

This report from the Council on Compulsive Gambling appears to reflect the timeframe between then and now. That makes sense. The Florida sports betting re-launch effectively gave the Seminole Tribe, the state’s exclusive operator, a wider reach.

With that added access comes plenty of benefits—many of them financial. As the problem-gambling report notes, it also comes at a human cost.

According to new data from the council, more than 2,400 people contacted the organization last year specifically for help,” writes Aaron Mesmer of FOX 13 in Tampa Bay. “Of those, more than 1,400 callers said they were struggling with online gambling…Overall, about 113,000 calls have come in since 2023, the year the Hard Rock Bet app launched as the only sportsbook operating in the state. That total surpasses the previous four years combined.”

This is a monstrous increase. And that means it’s an issue that cannot go unaddressed. It is also one that needs proper context to fully understand.

The Scale At Which Florida Sports Betting is Unexpected

Florida sports betting was first legalized via a gaming compact with the Seminole Tribe. Under the terms of the agreement, they became the sole provider of sports betting services in the state and all wagers needed to be processed on tribal property.

The latter stipulation led to the drawn-out legal battle we referenced above. West Flagler Associates (and others) took exception when the Seminole Tribe started allowing customers to access their online Florida sports betting app from anywhere in the state. Opponents continue to argue this violates the “on tribal property” clause of the gaming compact.

The Seminole Tribe interprets it differently. They believe their Hard Rock Bet app is an extension of tribal property, because that’s where servers operating it are located.

This logic is paying off. Florida sports betting is currently available to any of-age individuals from anywhere in the state. Even when accounting for the operational exclusivity, this means sports betting in The Sunshine State is being offered at an unexpectedly large scale. Think about it: Most expected that bets need to be submitted in-person. That inherently lowers the numbers of people who participate.

Instead, wagers can now be placed from anywhere. Considering that online sports betting in the United States accounts for the vast majority of all wagers placed these days, this structure has boosted the total gambling volume.

The Problem Gambling Increase Gets Even More Complicated

Problem-gambling surges are not unique to Florida given all of the context. Multiple studies have shown that the legalization of online sports betting leads to dramatic increases in calls to state hotlines specializing in these issues.

To be sure, this doesn’t make it okay. But it is a trade-off policymakers basically co-sign by permitting sports betting. Proponents believe regulated markets are safer than residents betting with offshore sites. They also aren’t shy about noting people cross state lines to place wagers if they can’t do so in their own homes. The idea of capitalizing on money being spent anyway has fueled plenty of legislative reform in the United States.

Granted, Florida is unique in that experts and lawmakers probably weren’t bracing for such a dramatic increase. Remember, most signed on for the current sports betting model thinking it’d be limited to on-site business. (That is what we are led to believe anyway.) The scale at which Florida sports betting currently gets deployed is not a variable many considered. At the very least, they did not account for it right away.

Online Sports Betting is Not the Only Factor Driving Problem-Gambling Calls

What’s more, the mass availability of Florida online sports betting is the lone catalyst for the problem-gambling increase. The rise of prediction markets are right there with it.

These transactions are classified as federally regulated “trades.” They consist of people “buying” shares in a “yes-or-no” outcome event. One such example would be: Will the Jacksonville Jaguars win the Super Bowl?

Prediction markets are considered an alternative to online sports betting. Payouts are not determined linemakers. They are instead the result of how popular a given “trade” becomes. “Investors” stand to make more money if most pick the Jaguars not to win the Super Bowl and they take the counter stance.

This order of operations is supposed to mirror the stock market. That subjects transactions to oversight of the Federal Trade Commission. This makes it so prediction-market operators do not need sports betting licenses to enter a given market. They are, as of now, free to operate in any state.

Much like Florida sports betting through Hard Rock Bet, prediction markets have their own applications. This yet again increases the scale at which people can put money on sporting events. And while prediction markets may not be classified as gambling, people who experience hardships from it or addictions to it will seek the same type of counsel.

None of this context makes the problem-gambling ascent any less unnerving. States everywhere should be investing more in problem-gambling prevention. Right now, the systems in place are more geared to reaction—to treatment. It feels like there is room for education on both the merits and danger of Florida sports betting and prediction markets.

Perhaps these findings from the Council on Compulsive Gambling will spur reform. That has to be the hope. Because as of now, neither sports betting nor prediction markets seem to be going anywhere.

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