Gambling has long been recognized as a vice. For most of America’s history, gambling enterprises have been illegal, except in a few famous locations, such as Las Vegas. Indeed, Las Vegas gets its nickname “Sin City” primarily for this reason.
Yet over the last few decades, America’s attitude toward gambling has become more liberal. For example, one can buy lottery tickets at almost any gas station across the country, and this legalized gambling is positively marketed by states as a significant source of revenue for schools. Never mind the fact that the vast majority of people buying lottery tickets are low-income folks who can hardly afford to waste their money on such frivolous wish-casting.
The government used to limit these socially destructive vices as much as possible, but now it's not only permitting it; it's advertising and encouraging people to gamble. Of course, it’s all framed with euphemistic language designed to communicate that it’s really not gambling per se.
Americans’ exploding gambling habits have been further fueled by the so-called prediction market industry where people can place a wager on nearly anything. Recently, the Ninth Circuit Court of Appeals identified prediction markets as a form of gambling and therefore subject to state regulatory authorities.
The two biggest prediction market companies are Kalshi and Polymarket, valued at $22 billion and $15 billion, respectively.
Prediction markets have sought to avoid being classified as gambling enterprises, despite the obvious fact that they exist to accept people’s wagers and pay out winnings at set odds if they win.
Our nation has historically shunned gambling as a dangerous vice because it encourages risky financial behaviors, which in turn fuel criminal activity. Furthermore, it has been well documented that gambling can produce addictive behaviors, destroy impulse control, and result in financial ruin and worse.
Sports gambling has long been a problem, but with the arrival of these online sports betting companies, the public has broadly accepted gambling. And sadly, a lot of children, especially teenage boys, are getting sucked into the addiction of gambling.
But it’s not just kids and low-income Americans who are indulging in the vice, as disgraced former Congressman George Santos has been handed the first lifetime ban from Kalshi after he earned some $17,000 betting on whether or not he himself would attend President Donald Trump’s State of the Union Address earlier this year.
Kalshi accused Santos of rigging the bet and fined him $71,356. He responded to the decision in a social media post, writing, “Hey @Kalshi thanks for the lifetime ban from your gambling platform. Let’s see how much longer you guys are around for.”
A North Carolina Republican House candidate, Lauri Buckhout, was also recently handed a three-year ban by Kalshi and fined $2,589.96 after she won $1,000 on herself to win the primary. The company explained, “As a candidate, Buckhout qualified as a direct decision maker for the contract and therefore had direct influence on the outcome of the Underlying event.” Buckhout apologized, stating, “I bet on myself. Literally. It was a dumb mistake, and as soon as I learned there was an issue, I worked to make it right. Safe to say my career as a Kalshi trader was short-lived.”
Meanwhile, the Commodity Futures Trading Commission, the federal agency that oversees the industry, has launched several investigations into individuals who may be engaging in what amounts to insider trading. As noted above, gambling inherently invites criminality.
What is troubling is the lack of broad cultural recognition that gambling is a vice and should be severely limited. Instead, a libertarian mindset has spread among the population regarding moral and ethical behavior. The waters have become significantly muddied, and what society once saw as evil is now celebrated as fun and even beneficial.
Even Major League Baseball has jumped on the gambling bandwagon, signing a recent partnership deal with Kalishi, with five teams signing on to push sports betting. What could go wrong? Given this development, Pete Rose must be rolling in his grave.
This mass legalization of gambling will only continue to produce more negative impacts on American society. Is it too late to reverse course?
