Sports Betting Gift Cards Increase Risk of Problem Gambling

Sports betting gift cards are becoming more common, sparking concerns about a rise in problem gambling. In the U.S., where sports betting was legalized at the state level in 2018, consumers have already wagered over half a trillion dollars. Now, gift cards sold at retail checkouts are making gambling even more accessible.

"It's certainly concerning as an access point," said Cait Huble, director of public affairs at the National Council on Problem Gambling (NCPG). "When you're gambling with a gift card or credits, you don't have the cognitive awareness that this is real cash that you're losing. It can be harder to track, or you can make riskier decisions."

Most gambling apps prohibit credit card use due to the risk of consumers exceeding their means. However, gift cards offer a workaround: they can be purchased with credit cards, allowing play without a direct link to one's budget. Experts suggest this distances the gambler from actual losses, similar to credit card use.

Betting platforms view gift cards as a safer alternative because they provide a predetermined limit. Gift cards also normalize sports betting, as they are often bought as gifts. For young men, in particular, whose brains are more susceptible to addiction, this can act as a gateway to problem gambling. Statistics indicate a significant proportion of boys and young men engage in sports betting even before age 18.

Lack of oversight and regulation is a concern, as many states do not meet safe gambling standards. While betting platforms attempt to verify users and monitor transactions, minors may gain access through informal age verification or via parents. Despite the growing problem, there are significantly fewer treatment centers for gambling addiction compared to those for substance abuse.