[HN Gopher] America's Bad Bet on Sports Gambling
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       America's Bad Bet on Sports Gambling
        
       Author : sharkweek
       Score  : 28 points
       Date   : 2022-09-02 20:18 UTC (2 hours ago)
        
 (HTM) web link (compactmag.com)
 (TXT) w3m dump (compactmag.com)
        
       | ren_engineer wrote:
       | bread and circus, same reason they are legalizing or
       | decriminalizing drugs after resisting for decades. They want the
       | masses sedated and distracted. 100K+ people die from opioids
       | every year and that number is rising rapidly, yet no national
       | emergency declaration or real action to try and stop it
        
         | MrGazzo wrote:
         | > no national emergency declaration
         | 
         | The former President of the United States declared it a
         | national health emergency:
         | https://abcnews.go.com/Politics/trump-declares-opioid-crisis...
        
           | jmclnx wrote:
           | But nothing was really done to stop it. But seems every US
           | President will declare something and all it does is blow hot
           | air to help warm the earth even faster :)
        
           | coding123 wrote:
           | Biden did nothing except appoint a czar that did nothing.
        
         | [deleted]
        
       | tqi wrote:
       | It's weird to me that media outlets like the NYT will criticize
       | apps like Robinhood or Duolingo for being addictive then turn
       | around and happily take advertising money from BetMGM or
       | FanDuel...
       | 
       | 1. https://www.nytimes.com/2020/07/08/technology/robinhood-
       | risk... 2. https://www.thecut.com/2019/04/why-breaking-a-streak-
       | feels-s...
        
       | frebord wrote:
       | Just replace gambling with alcohol. The small minority of addicts
       | shouldn't fuck it up for the rest of us.
       | 
       | I dove deeply into it this past year to extract some value out of
       | promotions the books are running, and have continued to bet
       | because it is fun trying to find lines that have positive
       | expected value and it's been a nice stream of extra income.
        
         | [deleted]
        
         | strombofulous wrote:
         | > it is fun trying to find lines that have positive expected
         | value
         | 
         | I've never gambled before, does this happen often? I would have
         | assumed gambling companies wouldn't offer any bets like this,
         | since it implies their EV is negative.
        
           | dottrap wrote:
           | Look up Edward Thorp, the famous mathematician who was the
           | first to use probability theory to beat blackjack and write a
           | book about it (Beat the Dealer). Basically, as a deck uses up
           | cards, the remaining in the deck may present a positive
           | expected value. By counting cards and knowing expected
           | values, you can adjust your bets to capitalize.
           | 
           | Since Thorp, Casinos have made it harder to beat them (e.g.
           | larger decks), but they still tease the possibility you can
           | beat them to entice people to try (and lose).
           | 
           | Edward Thorp later went on to write Beat the Market, where he
           | tried to apply similar probability principles to the stock
           | market. He independently invented the options formula, before
           | Black-Scholes (which the latter won a Nobel Prize).
        
           | le-mark wrote:
           | In sports positive EV can happen a lot based on real world
           | circumstances. Hot streaks are real, injuries and line ups
           | change before and even during games, players get arrested,
           | etc. Often times opening lines move drastically because the
           | books just don't know the true odds. In practice the books
           | move the line so they make a profit. Example everyone would
           | bet on chiefs over lions by a touchdown all day long; a line
           | might start there but move quickly. It's quite amazing that
           | final line is almost always 50/50 win probability.
        
           | rileymat2 wrote:
           | Is this true if they are not the counter-party, but the
           | facilitator?
        
             | whartung wrote:
             | Sports (parimutuel) gambling is different from casino
             | gambling. There's no "house margin", rather they simply
             | impose a fee (percentage) on the bet.
             | 
             | It's why on a 1:1 bet, you'd lose money, as the sportsbook
             | tend to take something like 10%. Even though the odds are
             | 1:1, your $1 bet would net $0.90. ($1.90, you'd get your
             | dollar back.)
        
           | throwaway_4ever wrote:
           | The only exception is Blackjack, where you could learn
           | positive EV play in a week, by "counting cards". That's why
           | casino's kick people playing too well. They make a little
           | money off 99% of players playing bad and try to kick the 1%
           | that make money off the casino.
        
         | nine_k wrote:
         | Health and behavioral implications of alcohol addiction can be
         | more expensive to the families and the society at large.
        
       | jmclnx wrote:
       | Seems peat and repeat for the US these days in all environments.
       | 
       | People forgot why Sports Betting was first outlawed (Black Soxs).
       | https://en.wikipedia.org/wiki/Black_Sox_Scandal This will nor end
       | well.
       | 
       | In the 1930's, Finance Law were passed to reel in abuses, since
       | the late 90s, these laws were whittled down and we had 2008. New,
       | weaker laws passed and as of now most are gone.
       | 
       | So seems to prove, if people do not read and understand history,
       | they are dommed to repeat the past mistakes.
        
         | danielmarkbruce wrote:
         | Maybe the cure was worse than the disease. Just because
         | something was previously banned, doesn't mean it was the right
         | call.
        
       | jonathankoren wrote:
       | The dueling commercials for California propositions about sports
       | gambling are such a farce. Neither prop 26 nor 27, actually talk
       | about sports betting all, and unless you pay attention to who is
       | paying for them, or actually read the text you wouldn't know.
       | 
       | For example, https://yestoprop27.com/ does not mention online
       | sports betting at all. It's so deceptive.
        
       | baron816 wrote:
       | I've thought it would be a good idea for states to issue
       | "licenses" for many vices. Want to buy alcohol or go to a casino?
       | You need to take a short course on the dangers of it and how to
       | be safe. If you act irresponsibly by over drinking or driving
       | drunk, then you can get your drinking license suspended.
       | 
       | For gambling, you could limit how long a person stays inside a
       | casino over a period of time, limit how many bets they place over
       | a period of time, or how much money they lose. Yeah, it's a
       | little nanny state-ish in the case of gambling, but there's
       | clearly some social harm going on there that states recognize by
       | already controlling gambling.
        
         | bergenty wrote:
         | It's not going to work for everything. Most (not an
         | exaggeration) men have wanted to sleep with 13-14 year olds in
         | pretty much every society in history. How do you propose we
         | satisfy that need?
        
           | Cupertino95014 wrote:
           | We don't satisfy it. Lots of people want to kill their
           | enemies, too. They seem to find the criminal penalties
           | sufficiently deterring.
        
         | Cupertino95014 wrote:
         | This is actually not a terrible idea, but enforcing it might
         | prove hard. I don't think your average casino right now keeps a
         | young parent from gambling away the rent money. On the other
         | hand, bars can and do refuse to give you any more alcohol.
        
           | baron816 wrote:
           | I don't think it would be that hard to enforce with pretty
           | basic software. Casinos have to get a license to operate as
           | is. They would scan people as they place bets. Casinos might
           | even get behind it since they would get access to the data--
           | they'd immediately know who the high rollers are, who the
           | cheaters are, what games people like, etc.
        
       | Cupertino95014 wrote:
       | We can replace the X in "X should be legal because criminalizing
       | it will just drive X underground" with (heroin / crack / glue
       | sniffing / child porn / whatever).
       | 
       | Not all of those substitutions work. It seems to be a difficult
       | thing to process, for some people, that outlawing things does
       | reduce their usage, and some of those things are _really_
       | harmful.
       | 
       | Conversely, at least some of the people who are now gambling on
       | sports really would _not_ have done so, when they still had to
       | know a bookie. No, they wouldn 't fuel the Mafia instead; they
       | just wouldn't gamble.
        
         | aaplok wrote:
         | Legalisation is a very broad notion. What to legalise?
         | Usage/consumption? Small business re-selling? Large private
         | industry?
         | 
         | Arguments for it cover an equally large range. The argument
         | about legalising _consumption_ for public health reasons
         | probably focuses more on reducing harmful consumption rather
         | than all consumption. The article cites several strategies used
         | by the sports gambling industry (eg QR codes) that encourage
         | addiction, and harm. You don 't need to make all gambling
         | illegal to crack down on that kind of stuff.
         | 
         | Ultimately the question is one of control. Complete market
         | deregulation is arguably the worse possibility here. With
         | illegal activity the government can control through repression,
         | and via a public monopoly they control the quality of the
         | product and the chain of distribution.
        
         | [deleted]
        
       | ilaksh wrote:
       | It's weird to me how sports gambling just seemed to start being
       | accepted as a normal part of everyone's life, apparently, based
       | on how common the ads are.
       | 
       | Gambling addiction is real. It affected my family.
       | 
       | It's like a tax on society, except that it often most negatively
       | affects the people who can least afford to be taxed, and then it
       | usually just goes to greedy people rather than funding public
       | works. At least lotteries supposedly go towards public projects.
       | But again, you are taking proportionately more from the most
       | desperate and poor people in that case which is the opposite of
       | how a tax should work.
        
         | code_duck wrote:
         | I'm still perplexed at how casinos are all over the US now.
         | Growing up in the 80s, the story was 'gambling is bad and thus
         | illegal everywhere, except horse tracks and for some reason
         | Nevada'. Then of course casinos on reservations started opening
         | all over, close to and even in the middle cities (Fond-du-Luth
         | in Minnesota, for instance, is directly in downtown Duluth).
        
           | coding123 wrote:
           | Welcome to the end of times. Same here, I remember a society
           | that was fair, hard working and not filled with crazies.
        
           | jonathankoren wrote:
           | Growing up in the Midwest, we got riverboat gambling, and
           | watched the slide inevitable slide to just casinos.
           | 
           | For those that aren't aware, this was the basic history.
           | 
           | Casinos are bad. Ban them.
           | 
           | Casinos are bad, but maybe profitable. Let's have a few, but
           | we'll put them on 19th century style paddlewheel riverboats,
           | and make the boat go out into the river for an hour long
           | cruise to limit access.
           | 
           | Okay, the boat can remained docked, but it will still
           | "cruise" for an hour before people are allowed on and off.
           | 
           | Okay, so maybe the boat can actually be in an artificial
           | pond, that's only about a foot bigger than the boat, as long
           | as that "boat in a moat" is within some small number of miles
           | from an approved gambling river. These boats will also "go
           | cruising", and since they are boats, they will be regulated
           | by the US Coast Guard, and be required to have enough life
           | jackets for the maximum occupancy number of the boat, even
           | though if the boat were to "sink" it would only fall 12
           | inches to the bottom of the of the moat.
           | 
           | Okay, so maybe the boats don't have to "cruise" and people
           | can just come and go from the gambling floor whenever they
           | want.
           | 
           | Okay. Let's just have a regular casino in a regular building,
           | nowhere near a river.
        
         | thebigjewbowski wrote:
         | The state taxes casinos and sports books an insane amount on
         | top of regular federal taxes and whatnot.
         | 
         | It's not totally extractive but they are obviously still
         | profitable.
         | 
         | The thing is, everyone gambled before legalization. You didn't
         | even need a bookie, every online casino has taken bets from US
         | citizens and then pay no taxes to the state or country.
         | 
         | Bookies are even worse than online casinos because they offer a
         | line of credit and later coerce you to give up your business,
         | sell drugs, etc.
         | 
         | All in all it's very similar to drugs. People are going to do
         | it anyway, might as well make it legal.
         | 
         | You can contact any casino and request to be excluded from play
         | indefinitely. You can set deposit limits and cannot lift them
         | for a month at a time. There's some "harm reduction" required
         | by law.
        
           | Cupertino95014 wrote:
           | No, "everyone" did not gamble. Some people did, but others
           | didn't want to enough to find a bookie or try an online
           | casino.
           | 
           | "People are going to do it anyway" -- wrong, _some_ people
           | are going to do it. Many will not if it 's illegal.
        
       | jollyllama wrote:
       | I think the anti-gambling proponents who said gambling
       | legalization would degrade society have to some extent been
       | proven correct.
       | 
       | TV, billboard, and other ads for gambling are rampant around
       | here. I find it exploitative.
        
         | mschuster91 wrote:
         | Better to have the demand served open and legally than forcing
         | people underground. Alcohol prohibition should have made it
         | _abundantly_ clear decades ago that attempting to ban vices
         | will only leas to criminal empires, and it 's just the same
         | with gambling, prostitution, porn and marijuana.
         | 
         | Regarding advertising you're spot on, although I'd go a step
         | further and call for sweeping regulations in the _entire_
         | advertising industry. Unless you move to a 21 souls settlement
         | in Alaska and leave a hermit life, you literally can 't spend
         | five minutes without being bombarded by one or another ad.
        
           | jonah wrote:
           | My area has banned billboards on the highway and otherwise.
           | They also have strict rules about signage in general.
           | 
           | It's really wonderful and when I go somewhere else and am
           | bombarded by those ads I am reminded again how assaulting
           | they are.
        
           | majormajor wrote:
           | > Better to have the demand served open and legally than
           | forcing people underground. Alcohol prohibition should have
           | made it abundantly clear decades ago that attempting to ban
           | vices will only leas to criminal empires, and it's just the
           | same with gambling, prostitution, porn and marijuana.
           | 
           | It's not obvious to me that all vices are created equal here.
           | If forcing gambling underground creates a criminal empire or
           | two but results in, say, 80% fewer gambling addicts who end
           | up damaging their lives and those of their families, which is
           | the larger harm? Fake numbers, obviously the benefits/harms
           | would depend on several different factors, but I don't think
           | a one size fits all approach makes sense because "illegal
           | gambling gangs" didn't seem to cause the same sort of larger
           | societal problems the last several decades that "illegal drug
           | gangs" or prohibition-era alcohol gangs have. I would assume
           | this is because the lack of a need for the same sort of
           | supply chain that you could attempt to monopolize and
           | dominate.
        
           | mynameishere wrote:
           | Isn't the whole "prohibition was bad" pretty much a just-so
           | story? Being the drinker I am, I don't want it to come back,
           | of course. But does having a few seedy speakeasies run by the
           | mob really amount to much compared to this sort of thing:
           | 
           | https://www.statista.com/statistics/1088683/death-rate-
           | rate-...
           | 
           | That's one disease. Booze causes all kinds of problems, and I
           | wouldn't be surprised if (as another example) wife-beating
           | sharply declined during prohibition.
           | 
           | (ED: Looking again at that graph, there's something a little
           | dubious about it--but it was the first data I could find.)
        
             | microtherion wrote:
             | That graph is indeed quite dubious, considering how long it
             | takes for liver cirrhosis to develop. Furthermore, it shows
             | a steep drop _preceding_ prohibition, so, if anything, it
             | suggests that prohibition came about because society 's
             | attitudes toward alcohol had already changed.
        
           | Karellen wrote:
           | If pervasive garish ads are criminalised, only criminals will
           | see pervasive garish advertisements.
           | 
           | ...and I'm fine with that.
        
       | danielmarkbruce wrote:
       | It would be nice if they added to the relevant legislation that
       | no bet can be more than negative 1% EV. There is some nuance to
       | figuring that (and perhaps you'd have to regulate the total
       | winnings / total wagered instead) but a decent part of the
       | problem is that folks are making _really_ crappy bets in most
       | cases. Making a lot of $20 bets at -1% EV is very different than
       | the same thing at -15% EV.
        
       | morcheeba wrote:
       | My best friend's husband is always bringing home winning $20 or
       | $50 lotto tickets. His family can't afford the $75 a week he
       | spends on those, but every gas station sells them. Even not-out-
       | of-control cases are harmful.
        
         | bergenty wrote:
         | Cardboard crack
        
         | [deleted]
        
       | tomohawk wrote:
       | People have forgotten how harmful gambling is. It was once widely
       | legal, but then made illegal in most places. During the time it
       | was illegal in most places, Nevada led the nation in many
       | categories such as: school drop outs, divorces, domestic abuse,
       | ...
       | 
       | Government involvement in such activities really just shows where
       | the priorities are.
        
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