Online Sports Betting
A multidisciplinary review
Luke Blankenship
Sophia Hampton
Quincey Newton
Aubrey Watson
RC 2001 - Beth Cox
Outline
Business Perspective Psychology Perspective (2)
Quincey Luke
Psychology Perspective (1) Cybersecurity Perspective
Sophia Aubrey
The Business of
Sports Betting
60% of college students have
participated in sports betting.
6% of those students say they do so
every day
Timeline of Sports Betting
1992 Professional and Amateur Sports Protection Act
2006 Unlawful Internet Gambling Enforcement Act
2018 Murphy vs. NCAA, 8 states legalize
2024 North Carolina becomes 38th state to legalize
Tax Revenue
$14.4bn US tax revenue from
Arguments sports betting, 2023
Regulation of black market
for Protections for problem users -
Legalization self exclusion and addiction
resources
Mitigate black market safety risks
Sports integrity - anti-fixing
measures
Regulation of an emerging market
SAFE Act - deposit frequency,
simple advertisements
Freedom of choice
Gambling safely is a personal
choice and responsibility
Bill passed in June 2023, sports
betting went live this year on March 11
Sports Projected 2024 tax revenue of $64.6m
Gross gambling revenue taxed at 18%
Betting in Tax Revenue Budget
North $2m to responsible gambling
resources
Carolina $2m to youth sports programs
$300k each to 13 state
universities’ athletic departments,
including App!
Remaining proceeds - 50% to NC
general fund, 30% to NC major
events fund, 20% to state college
athletics
Market Legal in 38 states
29.2 million monthly users (2023)
Summary Projected 2024 revenue - $9.65bn
2024 user penetration - 11%
2024 ARPU - $256.60
Market dominated by FanDuel and
DraftKings
2022 market share - 43% FD, 25%
DK
Most popular forms of bets are
moneyline and parlays, fastest
growing category is live in-game bets
“Free Play”
Problematic Encourages development of new
gambling habits
Business Tax deductible
Promotional recruitment offers
Practices Encourages peer pressure
Credit card deposits
Legal in 25 states, including NC
Marketing deals with universities
Specifically target students
Should gambling advertising be
coming from educational
institutions?
Discussion
Psychological
Perspectives
An overview of (gambling) addiction
The brain has a reward Gambling addiction plays on
system, in which it associates the same chemical reactions
certain stimuli with a positive in the brain as drugs like
consequence. cocaine.
Only about 1% of adults fit the Gambling addiction
diagnostic criteria for Problem is the only addiction
Gambling, but a quarter of US that has a cognitive
adults experience at least one distortion.
sign of it.
Social Connectedness
Perceptions Casino gamblers find that their enjoyment of gambling is
heightened by social connectedness.
of Online vs Online gamblers find the social isolation of the internet
format to improve performance.
Casino Anonymity
Gambling Casino gamblers do not have anonymity, find pride in
gaining social recognition.
Online gamblers highly value anonymity, create false
narrative of reality.
Control
Feeling of a high level of control over the game due to the
comfortability of gambling within your own home.
introduces features which allow players to feel more in
control of the finances of the game.
Self-seductive
imagination of desire
need to return to the active cultivation of
object of desire desire
acquisition of desire
The cycle of feelings
during casino gambling
mirrors cycle of consumer
desire. Online gambling
removes the more
Feelings Associated heightened stages of
these emotions, and
with Gambling incorporates feelings of
familiarity and safety
Effects of Those who have recently recovered from a
gambling addiction are especially vulnerable to
Advertisements enticing advertisements
on Recovering Apps will notify users of “missed bets,” baiting
them back to the app.
Gambling Look, my sister was in hospital and we ordered some
Addicts pizzas for dinner. And the pizza box read: ‘Come to
Codere and for having bought this pizza, get €20 [...] I
can't imagine seeing vodka bottles for free in a pizza
box'.
(from Madrid, 31 years).
What Makes Sports Betting Different?
Addictive Nature of Addictive Nature of
Gambling Social Media
combined with
dopamine release dopamine rush from
cognitive ditortion constant feedback
active choice to engage
Both social media and gambling include the idea of “intermittent reinforcement”
Calls to Problem Gambling hotlines have
dramatically increased in states where
Sports sports betting is legalized
Betting
Recent studies show a strong correlation
between sports betting and binge drinking
Addiction Apps are creating tools to help prevent
addiction
Voluntary self-bans
Tracking harmful behaviors
Try not to advertise to college students
Ease of access targets people who are
already struggling with other addictions
Not enough treatment options
According to NPR, in 2021
There is the sports betting industry
saw more than $50 billion
Serious Money
get wagered in various
sports.
Involved Here Tax money is huge, with
Illinois and New Jersey
collecting over $1 billion in
taxes from sports betting.
As of March 11, 2024, 38 states have legalized sports
betting, including NC.
The Offers
“Gambling problem? Call 877-718-
5543 or visit
morethanagame.nc.gov”
Money talks, and given the numbers involved,
sportsbooks are shouting.
Regulations on advertising are lax. Only Colorado has
passed legislation.
Money + Ads
Keith Whyte, executive director of the National Council
on Problem Gambling: "There is a higher rate now of people
who were in recovery that have been lured back or tempted
back into betting again due to the massive volume of ads."
Okay… 18-29 year olds are the most likely to develop problematic
gambling habits.
Where Does
Psychology Chasing Losses: “The person is attempting to recoup
Play into previous gambling losses by continuing to gamble. This
behavior often leads to financial difficulties, exacerbated by
This? increasing bets or larger risks to recover losses.”
Cybersecurity
Perspective
In 2018 the supreme court got rid of
Why Do They the ban on state sponsored sports
betting.
Need It? By 2029 the market will reach $167.66
compared to 2021 where it was $76.75.
The American Gaming Association says
39.2 million people have placed a bet
within the last year.
70% of people bet once a week and
20% bet at once a day.
Social Engineering Attacks
What are Phishing
Smishing
the Types Email compromise
DDoS
of Attacks? Actors flood the website so it crashes.
Cause website to not update leaving the website
vulnerable
Akamai reported 3 of the 6 biggest attacks DDoS attacks
took place in 2021 in Europe and a video game company.
Credential Stuffing
In 2022 a teenager was caught with over 60,000
draftkings accounts.
Protecting Information Back to Overview
What kind of information is at risk?
Credit cards Transactions
Name Social Security number
Address Phone Number
How companies plan for attacks
Cyber Insurance WAF (Web Training Maintenance on
Application software
Sports Betting Companies have
companies buy cyber
Firewall) employees go through Businesses regularly keep
insurance because it cyber security training so updating the software
Sets up a defense
lowers their chances of they can minimize error, and patch software due
instantly and monitors
getting put out of go over common scams, to vulnerability over time.
the traffic on the website.
business if a breach did and recognize patterns
happen. that are criminal
behavior.
Questions?
Thank you for listening!
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