Sports betting, online gambling, and now prediction markets are becoming harder to avoid. What was once confined to casinos or occasional wagers is now built into our phones, advertised on sports broadcasts, and increasingly our wider digital economy.
This raises bigger questions about the impact of markets. Should markets always follow demand, even when it involves a social harm, letting choice prevail and government coffers swell with the proceeds? Or should we look to the total economic and social impact – like indebtedness, bankruptcy, addiction and mental illness – for a sense of how to approach issues like the demand for gambling?
In Ontario, research has found a sharp rise in gambling-related helpline contacts among young men since the province expanded private online gambling, and reporting has also pointed to a major rise in gambling-linked insolvencies. In the United States, new research has linked legalized online sports betting to worsening consumer financial outcomes, including lower credit scores and higher rates of delinquency and bankruptcy.
To discuss this growing problem, Keldon Bester joins Inside Policy Talks. Bester is the executive director of the Canadian Anti-Monopoly Project and a fellow at the Centre for International Governance Innovation. He’s one of Canada’s leading voices on monopoly power, competition, and the broader question of how markets should be structured to serve the common good.
On the podcast, he tells Peter Copeland, deputy director of domestic policy at MLI, that the onslaught of marketing geared towards promoting online gambling comes on the heels of society having spent more than a decade figuring out: “how can I make someone spend as much time on their phone as possible?”
He says introducing gambling into the mix makes that an even more dangerous experiment.
“The fact that every 10 minutes you get a notification that says, ‘Hey, place a free micro bet on the outcome of the Jays game might in isolation be fine, but in sort of aggregate [might] be something we don’t want to become a much bigger part of our economy,” says Bester.
