Addiction Markets

(thebignewsletter.com)

164 points | by toomuchtodo 8 hours ago ago

141 comments

  • Humorist2290 an hour ago

      But if you want to outlaw this harmful activity [licensed gambling], you have to find a way to replace 6.4% of Maryland’s budget, which is slightly less than the entire amount the state brings in from corporate taxes.
    
    A fraction of the proceeds of losing bets from a fraction of Maryland's citizens contributes almost the same to state services -- EMS, education, road maintenance, etc -- than the total corporate taxes levied on all businesses.

    Do I misunderstand, or is this just actually incredible?

  • shipman05 35 minutes ago

    It feels like banning advertising for gambling would be a sweet spot between harm reduction and maintaining individual liberty.

    Sports gambling ads have ruined sports media. State lottery ads are even worse. The government should not spend money to encourage its own citizens to partake in harmful activities.

  • nekusar 5 hours ago

    People are also leaving out stuff like Pokemon, Yu Gi Oh, and Magic The Gathering.

    All of them also introduce rarities (arbitrary exclusiveness), hidden cards in a pack, and extreme gambling gamification.

    The only non-gambling MtG packs are the preconstructed commander decks. All 100 cards are published. But the packs and boxes? Pure gambling, especially for the chase rare cards.

    And before anyone asks, yes, my username is based after this $2 card. https://edhrec.com/commanders/nekusar-the-mindrazer

    • asdff 2 hours ago

      I feel like it only became rampant in recent years. As a 90s kid no one cared about the card packs. We all assumed they'd be junk cards and a waste of $7 or whatever. No, the move for card people back then was to wait for the card show and just buy the cards you actually want from a card dealer.

      The thing is now people are marketing the pack opening. You have social media accounts of them pulling cards from packs and getting all hyped up about it. Again no one thought that was fun in the 90s, everyone hated that aspect of cards in the 90s but thats because the unboxing as an experience wasn't marketed by anyone at all. People just wanted cards they thought were personally cool in some way.

      And likewise expansion of markets in the internet era means people start to have shared values of what is a valuable card based on market price vs just being interested in some certain cards out of your own interest.

      • strken an hour ago

        In the early to mid 2000s we used to do MTG booster drafts at the local game shop. Maybe the experience was different for different people.

      • lurk2 2 hours ago

        > Again no one thought that was fun in the 90s, everyone hated that aspect of cards in the 90s

        How old was everyone in the 1990s? Kids loved this kind of thing in the 2000s.

        • asdff an hour ago

          I can't imagine kids even liked it then. Again most of those packs were junk cards. Like total crap cards. Oh gee a rattata and some energy cards. All you wanted was Ash's squad from the shows.

          • lurk2 an hour ago

            The kids I knew who played these kinds of card games all loved buying booster packs, but they weren’t paying for these packs themselves and most grew out of playing by the time they reached high school. I can see it not being as fun for adult players who understand the probability metagame being played, but I think one of the reasons these games had so much financial success in the first place was that they identified a behavioral loop that they could exploit, exactly like contemporary developers did with loot boxes.

        • hdjdnsnslsj an hour ago

          The same age as kids in the 2000's?

          • lurk2 41 minutes ago

            I was asking if the “everyone” he was referring to was comprised of children or adults, as it didn’t map to my experience with children who played these games in the 2000s.

    • jparishy 44 minutes ago

      Sports, too. Recent post from the President of Upper Deck talking about it: https://www.linkedin.com/posts/jmash_everything-speculative-...

    • belkinpower 5 hours ago

      The Pokémon card mania in particular is deeply weird to me. I play Magic at a local card shop a few times a month and it’s always full of people playing Magic, D&D, or various board games. I don’t think I’ve seen a single person playing the Pokémon card game. So who’s buying the valuable singles? What’s keeping the market afloat? It’s bizarre.

      • asdff 2 hours ago

        People in their 30s and 40s. It is the same thing with boomers and comic books. What was once in mass circulation in your childhood is now out of print and commanding real value among your nostalgic peers.

      • squigz 5 hours ago

        My guess is literally just the people who trade them - and maybe like, 10 13 year olds.

    • hshdhdhehd an hour ago

      And Robinhood etc.?

    • mnky9800n 2 hours ago

      I used to really enjoy magic. Then at some point I couldn’t keep up with the constructed meta. So I switched to drafting. But now it seems like everything is so gamified that playing the game isn’t enough anymore. Now you need to play all the time both in the shop and on mtg arena and it’s like designed to keep you hooked. I hate it. I really just can’t be bothered to play anymore. It’s no longer fun it’s just a grind.

      • nicce 2 hours ago

        > It’s no longer fun it’s just a grind.

        Like most new games these days. I play only old games or few special ones like Baldur’s Gate anymore.

      • tayo42 2 hours ago

        Why does drafting feel like that?

    • squigz 5 hours ago

      I think there's a massive difference between card packs - which have been as you describe for decades - and the recent boom in sports betting. Most people don't even know what MTG is, or that there's even a market for those cards. Everyone now knows that you can bet on any sport you want - and if some reports are to be believed, a large percentage of people are participating.

      Anyway, this is why I play MTG online - same with 40k, although there's no gambling there. Just too expensive to play either IRL even if I wanted to.

  • toomuchtodo 7 hours ago

    Related:

    Coffeezilla: Exposing the Gambling Epidemic - https://news.ycombinator.com/item?id=45773049 - October 2025

    • Hasz 6 hours ago

      Great video. The convergence between traditional stock market finance and casino gambling is going to seriously scar a generation.

      • skippyboxedhero 5 hours ago

        Who do you think was buying options 30 years ago? Institutional demand, particularly for non-OTC options, was zero. Countries which have legalized gambling tend not to have large options markets.

        There is no convergence. They have always been the same thing. The difference is that you can provide a venue where harm is reduced or one where harm is maximised.

        • Hasz 3 hours ago

          Wasn't around to personally witness it, but I do not believe the first part is true:

          https://www.princeton.edu/~ota/disk2/1990/9015/901507.PDF, specifically page 94.

          Also, IMO there is a big difference between an open market that allows for price discovery and free trading versus placing bets against the same casino at predetermined prices.

        • hollerith 5 hours ago

          Options markets help farmers and miners decide how much to invest in future production. Ditto the consumer of a commodity faced with an investment decision where the success of the investment depends on continued access to the commodity.

          • malfist 3 hours ago

            Are you thinking of the futures market? That's different than options

  • gcanyon 6 hours ago

    This line from the ads always strikes me as darkly ironic:

    > if you need help making responsible choices, call…

    Like, the only “responsible” choice is not to gamble online. What do they even think we’re supposed to take away from that line of the commercial?

    • savanaly 5 hours ago

      > the only “responsible” choice is not to gamble online

      I don't gamble at all in any form, but I still firmly disagree. Some people enjoy gambling in a way that never hurts them-- I've known countless friends and coworkers who talk about doing a bit of it in Vegas or what have you. You're saying every last one is a degenerate gambler somehow concealing it totally from me? They know they're not going net positive on the experience, usually lose some money, and get some entertainment.

      There's a saying about this: abusers give vice a bad name. People should be free to gamble if they want to, and certain checks should be put in place for people who choose to gamble so much it is ruinous to themselves.

      • matthewdgreen 5 hours ago

        These services make a relatively smaller piece of their profit from "responsible" people with a lot of self-control. In many cases, the business is probably not viable without problem gamblers. Problem gamblers account for anywhere from 51% of revenue for sports betting apps, to 90% in the case of casinos [1,2] and the numbers seem to be getting worse.

        [1] https://portal.ct.gov/-/media/DMHAS/Publications/2023-CT-FIN... [2] https://www.umass.edu/seigma/media/583/download

        • strgcmc 2 hours ago

          I got curious and validated your source [1], to pull the exact quote:

          "The proportion of Connecticut gambling revenue from the 1.8% of people with gambling problems ranges from 12.4% for lottery products to 51.0% for sports betting, and is 21.5% for all legalized gambling."

          Without going into details, I do have some ability to check if these numbers actually "make sense" against real operator data. Will try to sense-check if the data I have access to, roughly aligns with this or not.

          - the "1.8% of people" being problem gamblers does seem roughly correct, per my own experience

          - but those same 1.8% being responsible for 51% of sportsbook revenue, does not align with my intuition (which could be wrong! hence why I want to check further...)

          - it is absolutely true that sportsbooks have whales/VIPs/whatever-you-call-them, and the general business model is indeed one of those shapes where <10% of the customers account for >50% of the revenue (using very round imprecise numbers), but I still don't think you can attribute 51% to purely the "problem gamblers" (unless you're using a non-standard definition of problem-gambler maybe?)

        • savanaly 4 hours ago

          I can readily believe that to be true, but my point still stands, the person I'm replying to made a really sweeping and incorrect statement.

          • dwaltrip 4 hours ago

            You don’t think it’s ethically and morally questionable to frequent a business that knowingly harms the majority of its customers?

            I agree there’s a some sort of gray area here, but it feels awfully narrow… especially with the recent sports betting companies.

            • travisjungroth 32 minutes ago

              I don’t want to derail the conversation, but I do want to make an analogy. I’m vegan, and I mostly go to non-vegan restaurants. I’m giving my money to businesses that mostly do something I don’t support.

              The way I resolve this is “What if everyone did what I did?”. The restaurants would obviously have to change. I figure the type of demand I create is more powerful than how they might use the profit.

              I think the same thing applies here. If everyone only gambled responsibly, these companies would all be in the responsible gambling business.

              At the same time, I think sports gambling has completely gotten out of control and needs to be more regulated. More advertising regulation seems like a good place to start.

            • savanaly 4 hours ago

              I feel like the goalposts have been shifted massively in this conversation. The original sentiment was "there's no way to responsibly gamble online", and that's all I was ever responding to.

            • Karrot_Kream 4 hours ago

              "some gray area" is an understatement.

              Sports betting companies structure their odds and order books to disadvantage most bettors. There are plenty of markets where that isn't the case.

        • kulahan 4 hours ago

          Whales provide the most value? You don't say.

          • gcanyon 4 hours ago

            It’s not whales, it’s compulsives. The stories are horrific. People have moved to non-gambling states, and the casinos send them nice letters saying, “We miss you! Here’s a coupon for a free flight to our state, you don’t even have to promise you’ll gamble, just come and have a steak dinner in us”

      • lurk2 an hour ago

        > You're saying every last one is a degenerate gambler somehow concealing it totally from me?

        A person can be generally responsible while still making decisions that are irresponsible. Gambling has a negative expected value, and so is generally considered to be irresponsible. Gamblers will often counter that they expect to lose their money and consider it to be a form of entertainment, but the whole of the entertainment is in believing that you might get lucky; this is indistinguishable from the motivation of a gambling addict. You don’t see these people taking out $500 in 1s and setting them on fire for fun, even though this is the aggregate outcome of habitual gambling.

        Some might protest that all forms of entertainment are like this: You take the $500, take it to a movie theater, and 16 hours later your money is gone and you’ve seen 10 movies. So far as I know, the identification of casual gambling with vice dates back to the Victorian Period. I suspect (but cannot confirm) that the reason gambling was identified as a vice where other forms of comparatively frivolous entertainment were not is due to gambling’s (false) promise of providing money for nothing.

      • snuxoll 5 hours ago

        The problem is this: the house always wins. Casinos, online sports books, the lottery, all of it is designed such that all but quite literally a lucky few will lose money. If you understand this properly, then, yes, there's absolutely nothing wrong with it being a form of entertainment, but that means you need to go in thinking about cost per hour instead of any notion of leaving with more than you began with.

        This is why I have a huge problem with the recent development of online gambling outlets that you can access via your smartphone. In the past you had to go somewhere to gamble, it was a physical act that provided a barrier to entry. Now? You don't even need to think about it, your bank account is already linked, just spend away!

        Personally, I'd rather states loosen laws and allow physical casinos be built and properly regulated than be in the current situation we have with these poorly regulated online money-siphons.

        • LPisGood 4 minutes ago

          The house does not always win in online sports books. I personally know some quant minded people that have been banned or backed off from a dozen or more online sports books because they are crushed by any nontrivial understanding of price/probability and arbitrage. They do make a lot of money from people who bet for fun or based on their perceived knowledge of the particular sport.

      • gcanyon 4 hours ago

        >every one is a degenerate

        Not at all. First, yes, people should be free to make their own choices. But that means making free choices. Just as we don’t allow advertising for cigarettes, we shouldn’t allow advertising for gambling.

        Second, there’s a world of difference between “hey, let’s go have a crazy weekend in Vegas” and “I have a blackjack dealer live on my phone 24x7.”

      • kiba 2 hours ago

        That's like saying drunk gave alcohol a bad name.

        It's a net negative for society but we can't simply get rid of it because of the side effect of doing so, particularly since it's so easy to brew alcohol.

      • rsync 5 hours ago

        Bob and Alice and the eavesdropper is Eve …

        What name do we give “the guy who says it’s fine to tear down Chestertons fence” ?

      • dwaltrip 4 hours ago

        Ah yes, let’s blame it all on the weak-willed addicts… That hasn’t been tried before, and would certainly help.

      • BoorishBears 5 hours ago

        You can't let society keep inventing new vices for profit in an uninhibited way.

        It feels like a bell curve topic, where the most naive people think you should just ban all vices and have a strictly better world, the middle of the road thinks it's all down to personal fortitude, and then people who know how the sausage is made realize the level of asymmetry that exists.

        Weed isn't just weed anymore, it's fruity pebbles flavored.

        Porn isn't just porn anymore, it tries to talk like a person and build a parasocial relationship.

        Video games aren't just video games anymore, they start embedding gambling mechanics and spending 2 years designing the "End of Match" screen in a way that funnels you into the next game or lootbox pull.

        You need to stop somewhere. Tech + profit motives create an asymmetric war for people's attention and money that results in new forms of old vices that are superficially the same, but realistically much much worse.

        Gambling specifically online might just be giving tech companies too many knobs that are too easy to tune under the umbrella of engagement and retention.

        • snuxoll 4 hours ago

          > You can't let society keep inventing new vices for profit in an uninhibited way.

          I agree, but:

          > It feels like a bell curve topic, where the most naive people think you should just ban all vices and have a strictly better world, the middle of the road thinks it's all down to personal fortitude, and then people who know how the sausage is made realize the level of asymmetry that exists.

          There's a wide gap in beliefs of the people who "know how the sausage is made" which is why I'm guessing you didn't ascribe a certain view to them.

          Realistically, I think it breaks down into three camps:

          1. They agree with the other end of the curve, and think the potential harm is too great.

          2. They're in on profiting from it.

          3. They are open to people being free to make decisions, but think there needs to be regulations on outright predatory behavior and active enforcement of them

          I don't have a problem with anybody choosing to safely engage with recreational drugs, pornography, gambling, alcohol, and a number of other vices - humans have sought these activities out for an extremely long time, and outright banning them simply (as we have seen time and time again) leads to unregulated black markets that are more harmful to society as a whole. But it feels like we've done a complete 180 and now we have barely any regulation where it's needed, late-stage capitalism at its finest.

          So many states have put ID verification laws out for accessing pornography, exposing citizens to huge privacy risks in the process, but we've got casino empires draining their savings accounts and can't do anything about it? Please.

          • BoorishBears 2 hours ago

            I'm ascribing the same level of sentiment to both ends, that's what a bell curve is.

            They have different reasons for their disdain, but neither side tends to love it.

            In general the more people learn about the process, the more they dislike the current system. There's outliers, but that's why the last decade has mostly been a decline in general sentiment around big tech, and even in the last year AI doomerism is going increasingly mainstream.

            Even the people who make these experiences don't do it beliving they're making something enriching. And they're definitely are not clamoring for their own families to grow up on this stuff.

            > So many states have put ID verification laws out for accessing pornography, exposing citizens to huge privacy risks in the process, but we've got casino empires draining their savings accounts and can't do anything about it? Please.

            That's driven by politicians pandering to the naive side of the bell curve, why are you surprised it's not consistent with what's best for the people?.

            Their actions are driven mostly by what looks good at the polls and doesn't hurt their own bottom line too badly.

            States are raking in billions of dollars in taxes from gambling, so it's not going to get that treatment.

    • turtletontine 5 hours ago

      We’re not supposed to take anything from it, it’s a simple legal liability thing. (And maybe actually mandated by law?) It’s like mandatory workplace trainings: they do almost nothing to prevent people from acting badly, but they let employers say “look we told our employers not to do this!!! it’s not our fault they did it anyway!!”

      (More apt comparison is obviously alcohol commercials saying “please drink responsibly”)

      • hshdhdhehd an hour ago

        Funny you say that as any level of alcohol consumption is bad for your body.

    • mrguyorama 5 hours ago

      They are legally required to include that. They don't actually care.

      Casinos and gambling institutions absolutely and purposely optimize to attract and capture more problem gamblers.

      The evolution of digital slots is a great example of this. An average person could have a little fun with an old fashioned basic slot machine, but the modern ones are so aggressively optimized to trigger addiction and keep addicts going that if you aren't vulnerable, they are massively offputting.

      But they don't care, they don't have any desire to serve "Normal" people, and trying to make gambling more fun for people who aren't vulnerable to gambling addiction isn't something they do.

      Because nearly all profit comes from addicts.

  • sakopov 3 hours ago

    > Coinbase CEO Brian Armstrong rattled off crypto buzzwords at the end of the Q3 call, resolving $84K in prediction market bets to "yes."

    https://x.com/Cointelegraph/status/1984161085780263322

    • alphazard 2 hours ago

      Polymarket is not even close to the same thing. Sports betting allows a blessed few corporations to run rigged markets and intentionally prevent price discovery by keeping the smart money out.

      Polymarket uses open orderbooks where you match against someone else who wants the other side of the trade just like the stock market. Prices are set by the market, as they should be.

      • array_key_first 2 hours ago

        Polymarket is like the stock market, that is to say, it's gambling.

        Nobody should be day trading unless it's their job. Yes, I have seen many guys get sucked into it.

        • Karrot_Kream an hour ago

          And people shouldn't be constantly buying mechanical keyboards and keycaps for farming social media karma and affirming their identity when they probably only have a few devices that need keyboards anyway. There's a whole rabbit hole of vice out there if you're interested in looking.

          While we're at it, I propose a Board of Ethically Allowed Activities that make sure we can only do the good and moral things.

          • array_key_first an hour ago

            I'm not saying that we should restrict it. I'm just saying it's not productive or healthy.

            The difference is that hobbies are fun. Gambling is fun in the same way smoking is fun. It's not, but you have to do it. I know, because I was a smoker.

            Also, on the topic of morality: morality is stupid. Gambling isn't immoral. Or maybe it is, I don't care. Gambling is self destructive. It can pretty much exclusively only make your life worse.

            • nbngeorcjhe 43 minutes ago

              > morality is stupid

              least contrarian HN user

              > only make your life worse

              Unless you have a family with whom your finances are intermingled. This is like saying alcoholism only makes your own life worse, because obviously your actions have no effect on the people around you, right?

              • bc569a80a344f9c 7 minutes ago

                You parsed the person you’re responding to wrong. They didn’t say that gambling only affects your life and not anyone else’s, they said it has an exclusively negative outcome and not a positive one.

    • disqard 2 hours ago

      Wasn't this posted a minute ago and on the front page?

      Am I going crazy, or was it just... disappeared from there??

  • cal_dent 6 hours ago
    • neonnoodle 5 hours ago

      > Wonder how all of the focus seem to happen at the same time

      Because this practice was made legal very recently in most places in the US and a concomitant advertising boom has saturated the media. Before the last few years, your average American couldn't bet on sports without visiting a casino sports book in person, or having a bookie (i.e., entering into a risky relationship with organized crime). TV sports coverage now openly refers to how you can use their analysis to make bets.

      • neaden 5 hours ago

        Also because the NBA is going through a gambling scandal with players being involved with the mafia.

        • robotnikman 2 hours ago

          This is the first time I heard of this, I decided to look up some of the news stories behind it. Maybe I'm nieve, but I thought the Sicilian Mafia died out decades a

    • nicce 2 hours ago

      I find it odd that almost nobody ever refers stock trading as gambling. While for most persons it is nothing else.

      • daemonologist 12 minutes ago

        What it comes down to I think is that historically, on average, stock traders come out ahead while "gamblers" do not. (Of course you can still go all-in on one company, or buy insane options, or use leverage, etc., and thereby gamble on stocks.)

      • dbpcut an hour ago

        Because at the end of the day you are buying an asset. Whether that asset stays valuable or not will change.

        Gambling is the chance to have nothing at the end.

  • Karrot_Kream 4 hours ago

    On a somewhat related note, there seems to be a huge interest in vice policing on social media. Gambling, sex, drugs, these are some of humanity's oldest vices. Why has it become so popular on social media to highlight these, along with a narrative of social or cultural decline?

    • hshdhdhehd an hour ago

      Think of it in terms of public health not morality. Heart disease is one of humanities oldest killers but we still want to fix it. We also dont want to ban deep friers as we value freedom. Similar for gambling. We do want to discuss what to do when vice becomes no longer nice.

    • asdff 2 hours ago

      Standard bible thumping. You will notice that there is also an emphasis on traditional family values as well both in the media and in the positions of politicians.

      • Karrot_Kream 2 hours ago

        I guess it's been interesting watching this become popular in secular, lefty circles rather than the historically religious right circles I see this from.

        • asdff an hour ago

          The mainstream left (really a centrist party) might be nominally secular but not really removed from conservative religious values. E.g. consider treatment of gay people in the media vs actual gay culture. In the media it is always a happy monogamous couple where one of the gays is clearly masculine and the other is clearly more effeminate. In reality gay culture is far more complicated than that, with many engaging in polyamorous relationships and/or routine clubbing for example that you won't ever see celebrated in this way in the mainstream media, which sees that sort of behavior as immoral just as a religious person might.

          I'd hate to get all true scotsman but a true leftist would never preach for prohibition as a solution for vice.

          • Karrot_Kream an hour ago

            I think the centrist vs leftist distinction isn't particularly interesting for me in this instance because that's a discussion that feels more relevant at a political party level for me. In the US, the Democrats as a party are center-left.

            But the audience for these anti-vice takes seems to be "lefty" people. Both center-left folks and also leftists. I see plenty of folks on Bluesky who want a socialist revolution tomorrow that also want to ban gambling.

    • fritzo 3 hours ago

      And the fourth oldest vice is gossip, the original social media, talking trash while you pick bugs out of your friend's hair

  • brettgriffin 6 hours ago

    The problem isn't the 70M people who placed bets, its the ~25M with broken risk aversion.

    These are mostly men, and a very specific type of men. You can try to curtail their access to gambling but we're missing the underlying problem.

    • michaelt 6 hours ago

      Has society ever addressed an underlying psychological problem successfully?

      Because when it comes to the underlying psychological causes of homelessness and drug addiction and school shootings and violent extremism my impression is we don’t really do much.

      • skippyboxedhero 5 hours ago

        Do all of these occur with equal proportion in every country/culture?

        I am not sure what you are saying with homelessness...it isn't some massive baffling issue, someone who doesn't have a house, needs a house so build a house? School shootings...I don't understand how anyone can believe this is normal?

        The US has fairly obvious social problems, these essentially inhibit the functional resolution of most of these problems you list. However, gambling is not like this, the solution to problem gambling is (obviously) regulating gambling so that it is possible for the government to control people's behaviour. Simple.

        Homelessness? Build houses. Drug addiction? Get people clean, harsh sentences for dealing. School shootings? No guns. Violent extremism? Jail. These aren't real problems. Most of the world does not have issues with this stuff (I will accept through drug usage in the US appears to be so ingrained in culture, that it would never be possible for anyone to do anything to fix it...the solutions are known however). It is only over the last ten years or so where government has appeared totally unable to do anything because of paralyzing social discord.

        • michaelt 2 hours ago

          It's a classic way of sweeping problems under the rug. Imagine you're a cynical politician.

          A school shooting happens. You don't want to ban guns. So you say "switzerland doesn't have this problem, we need to address the mental health issues that are driving these young men to kill" as a distraction. Nobody's got a workable plan to do that, so you do nothing - which is what you wanted to begin with.

          There are lots of rough sleepers. You don't want to build more houses. So you say "many homeless people are estranged from their support network by mental health issues and addiction, we need to address this underlying cause" as a distraction. Nobody's got a workable plan to do that, so you do nothing.

        • ux266478 31 minutes ago

          I'd rather we actually deal with the issues causing these things than sweep them under the rug and pretend like it's an actual solution.

          > Build houses.

          That doesn't solve homelessness, as we build many houses in America but they aren't being filled with the homeless. You need to apply social services in a complex systematic approach to provide housing that people can afford sustainably, and rehabilitate and integrate people into society. You might think that is a bit of a bad faith "gotcha" like, of course you have to make the housing free and ensure homeless people know it's available. But it's not a small detail to elide, even in context, and doing so is exactly why your thinking is off-base. You haven't even begun to unpack it properly, putting aside the falsehoods. Think about it, what do you do if someone doesn't want to accept the housing for complex reasons like pride or embarrassment? What if it's some crust punk kid riding suicide as a rite of passage? You have to deal with a lot of that! You can't just ignore it!

          > Get people clean, harsh sentences for dealing.

          Punitive measures have proven to be a complete and total failure globally. Even in Asia, where penalties on all sides of the drug trade are high, drug usage is very easy to find and rising. I say this as someone connected to Asia and with a fair amount of "street smarts" that some seem to lack. Japan and Korea don't even try to hide it anymore. Chinese cities are kept clean through a complex system of travel controls and consistent policing to sweep things under the rug. It's easy to score if you pass as Chinese outside of the tier 1 and 2 cities though. Even Saudi Arabia is flooded with black market drugs if you know where to look. Punitive measures empirically do not work.

          > Violent extremism? Jail

          Where is that not the case? Like what are you talking about? Do you know how common attempted domestic terrorism was against the US power grid and cell towers in 2020/2021? No, you don't. Almost nobody does, and certainly nobody has an exact number. That's because it was kept very quiet and the thousands of incidents were suppressed from the media cycle while the people involved were quietly thrown into the maximum security incarceration hole never to be seen again.

          The person you're replying to is right. These issues are solved, and it means looking at why people want to do any of this to begin with and addressing that. You cut it off at the behavioral source. Think of it like this, do you check every pointer before you dereference it? No. You avoid bad pointer dereferences primarily through proper structure of your code.

          You almost tap into this with being cognizant of the fact that it's not universal. It depends greatly on the country and culture. Because some countries and cultures have done a much better job at building worthwhile, healthy societies than others.

      • brettgriffin 5 hours ago

        I'm an optimist at heart, but this subject is dear to me, and my opinion may seem pessimistic: the short answer is, no, it cannot be fixed at any large scale, at least not in a lifetime.

        • squigz 5 hours ago

          Large-scale societal change requires generations of work, indeed. That may be disheartening, but it is the way it is, and we should continue to work toward those changes.

          • fairmind 5 hours ago

            Anti-Smoking, especially in teenagers, seems to have been successful.

            • wizzwizz4 an hour ago

              Vaping is counteracting that somewhat. (There's the perception among many kids that vaping is deeply uncool – and they'd be correct – but that's not something we can rely on.)

              • mattgreenrocks 24 minutes ago

                Yep. Generational memory is short. Eventually our kids or our kids kids will try whatever smoking’s been rebranded to just to spite the adults. And the cycle begins anew.

    • stocksinsmocks 2 hours ago

      I would entertain the possibility that there are at least some who cannot or will not avoid that kind of destructive behavior. The only thing you can do for them is deny access. I know that nobody asked for a lecture on 12 step, but number one is an admission that you do not have control.

      Do you enable the majority who can manage risk, knowing some will be destroyed by it or deny it to everyone to protect the minority who can’t?

    • matthewdgreen 5 hours ago

      These gambling businesses specifically target that 25M. You absolutely can make that much harder for businesses to do, and it will significantly reduce downstream misery.

      • Karrot_Kream 4 hours ago

        This is the logic behind the war on drugs and we all saw how that turned out. Obviously there's nuance to be had as I think some vices, in both type and magnitude, are worse/more destructive than others. But crusades against vice rarely turn out well. Instead you'll see the same people huddled around in underground betting rooms and backroom card game tables where organized crime or just other muscle-for-hire are ready to break your knees for not paying your debt back.

        • dwaltrip 4 hours ago

          There has to be more options than just the two you reference... not saying it’s easy, but we can’t just throw our hands up.

          • Karrot_Kream 4 hours ago

            Yes but this article isn't it.

            Using ideologically charged words like "corporate gambling" and "neoliberal origins" are fun ways to get the moral outrage going of market skeptics but they don't lead to good policy.

            The boring answer is you need to look at how the owner of these instruments (since that's what most of these are) are making money. In the same way that a regulated exchange makes sure you're not dumping garbage onto order books, you need to make sure that the bets are fair and that there's generally positive EV. Prediction markets are a good example of this that isn't predatory but sports books are. Unfortunately this article, as is usual for most of the moral outrage genre, doesn't make this distinction.

        • stocksinsmocks 2 hours ago

          I would not call the California strategy on drugs a success.

        • loeg an hour ago

          Dude, the war on gambling was going fine before it was legalized nationwide like 2 years ago. We don't have to have long memories to remember a time before omnipresent sports betting! It was fine!

          • Karrot_Kream an hour ago

            Sports betting is only one form of gambling, so I have no idea what you're talking about. This article, like your post it seems, is conflating the two and mixing in vague assertions of corporations and whatnot to add a layer of emotion that serves more to manipulate than to elucidate.

            There's always been gambling in my lifetime. There's been legal ones like Indian Casinos and Vegas. Then there's been the below board ones, the private blackjack games, the mahjong parlors in shady parts of town, lottery players (it's okay if the government profits off the losers I guess lol), etc

            If this article were talking about banning sports books and adding in regulation around retail betting then sure that would be a fun discussion. But hyperbole like the article and your copious use of exclamation points doesn't inspire confidence.

          • lotsofpulp an hour ago

            Fyi, the Supreme Court case that opened the floodgates for sports gambling was decided in May 2018, 7.5 years ago.

            https://en.wikipedia.org/wiki/Murphy_v._National_Collegiate_...

    • danielmarkbruce 3 hours ago

      I believe there are studies which show men are more likely to have problems with sports betting, but women are with slot machines. My anecdotal evidence (and it's bordering on statistically significant...) is that these studies are correct.

    • b00ty4breakfast 5 hours ago

      sure, and that should be addressed. But in the meantime, we shouldn't be making it easier for them to engage in that behavior and we shouldn't be making it easier for people to encounter industrialized gambling for the first time who would otherwise find the process too laborious to seek out on a whim.

    • palmotea 6 hours ago

      > These are mostly men, and a very specific type of men. You can try to curtail their access to gambling but we're missing the underlying problem.

      You should address that too, but gambling is frankly a parasitic business meant to exploit such people, and we should not let the perfect be the enemy of the good by avoiding the re-abolishment of such a pernicious industry.

    • hollerith 6 hours ago

      Well, sure, but it is unlikely that we can fix the underlying problem: the science of psychology is not advanced enough.

  • rybosworld 6 hours ago

    I don't think you can kill corporate run gambling - people will just use some offshore website instead.

    It might be something we should treat more like smoking.

    - Require a disclosure of the EV of each bet as the user is placing it. E.g.: Expected loss $5.

    - Ad targeting restrictions.

    • paxys 6 hours ago

      > people will just use some offshore website instead

      No they won't, because moving real money to and from these shady offshore websites is a nightmare, and without enforcement there will be too much fraud in the system for the vast majority of regular people to bother.

      Gambling is so prevalent today because 1) there is incessant advertising, including being overlaid on the game you are watching and 2) it is convenient, taking like 3 clicks and under a minute to go from scratch to placing bets. You can even use Apple Pay. Take away either of these and participation rates will plummet.

      You don't even need to speculate, just look at the numbers. There were countless illegal and gray market gambling options available a decade ago, both online and in-person. How many people were participating back then? I personally didn't know anyone who bet on games outside of maybe the occasional trip to Vegas, and that too was just for the novelty of it. Today >50% of adults in the US are regularly betting online, and the number is growing every year.

      • hyperadvanced an hour ago

        I think you’re right - some people will gamble no matter what, but removing all barriers to entry and advertising it on ESPN will certainly grow that market much more than people actively seeking out betting in shady places online.

        It’s similar to weed legalization 10 years ago. Yes, it’s now much less likely that your weed will be spiked with meth or you will be robbed by your dealer, but also like 1000% more of the population smokes weed now and it has some bad social side effects that people don’t like to think about.

        I think in both cases, as with prohibition, making something commonplace illegal again tends to make people do crazy things if they’re addicted, and I’d bet gambling is no different

      • vhcr 5 hours ago

        This is not a hypothetical, people already do it like that in my country (Argentina), you send your money to a person that buys tokens using cryptocoins, since these websites don't comply with the local regulation, even kids are addicted to gambling.

      • Vaslo 4 hours ago

        People buy illegal stuff and dark markets all the time. Even a decade ago I knew a guy who was buying dope and having it mailed to him from the dark web and he was minimally technical. They know there is a risk but they are willing to take it. This isn’t like buying a lawn motor - people will take some fraud as “acceptable losses”.

        • array_key_first 2 hours ago

          I think the difference is that, with gambling, the "buying" part IS the addiction. It's money centered. But with dope, the "buying" part is nothing - you do it for the dope.

          If I give out free dope, I'll get a lot of people hooked. If I give out free sports betting, but you get nothing, then nobody is hooked.

        • paxys 4 hours ago

          We are not talking about one person. Yes everyone "knows a guy" who will find ways of doing stuff regardless of the laws or availability. We don't need to care about that person. However if half of America is becoming that person then we absolutely need to care.

          • Karrot_Kream 4 hours ago

            You're fighting anecdote with anecdote. Earlier you say back in the gray market days you knew nobody gambling in your circle. Now you're saying the other commenter's "one person" isn't representative. You can't have it both ways. Either both anecdotes need more data to support them or neither do.

    • TSiege 6 hours ago

      This is a problem that literally had minimal societal consequences just a few years ago before the 2018 supreme court ruling[1]. I don't see why we shouldn't just try to move the laws back to how things were in 2017.

      Source 1: https://en.wikipedia.org/wiki/Murphy_v._National_Collegiate_...

    • kelseyfrog 6 hours ago

      You can't kill murder; murder will always exist.

      Surely, like murder, and other negative outcome behaviors, we can reduce the occurrences, right?

      • mattm 30 minutes ago

        If murder was legal, surely the amount of murders would increase.

      • cheeze 6 hours ago

        Yeah. Just like we do for smoking. I don't think I get your point. Are you agreeing with the prior commenter?

    • cogman10 5 hours ago

      I'd ban all advertisement and put a market cap on these companies before mandatory breakups happens.

      None of these companies should be worth a billion dollars.

      My big fear is these companies are all getting rich which means they'll be able to buy political influence.

      I'm pretty tolerant of a lot of vices. I also don't really have a problem with low levels of gambling. But the way these companies are setup is just sick. It's abusive the the public and erosive to society in general.

    • crystal_revenge 6 hours ago

      Even in your comment you can see the challenge with education and gambling. In practice the return on a dollar (just a different formulation of EV) is often legally mandated to be something around 0.9 and for many games is very close to fair.

      But variance, not expectation, is where casinos get their edge. The “Gambler’s ruin”[0] demonstrates that even in a fair game the Casino will win due to their effectively infinite bankroll compared to the player.

      You can also simulate this yourself in code: have multiple players with small bankrolls play a game with positive EV but very high variance. You’ll find that the majority of players still lose all their money to the casino.

      You can also see this intuitively: Imagine a game with a 1 in a million chance to win 2 million dollars, but each player only has a $10 bankroll. You can easily see that a thousand people could play this game and the house would still come out ahead despite the EV being very much in the players favor.

      0. https://en.wikipedia.org/wiki/Gambler%27s_ruin

    • vlovich123 5 hours ago

      If that were the case then the SCOTUS decision legalizing it nationwide would not have been as impactful as it was.

    • toomuchtodo 6 hours ago

      > I don't think you can kill corporate run gambling - people will just use some offshore website instead.

      You can block it at payment rails. The reasonable amount of avoidance of controls around gambling laws is not zero [1]. You're making it hard for all but the most determined, who are free to lose it all.

      [1] https://www.bitsaboutmoney.com/archive/optimal-amount-of-fra... (Control-F "This extends beyond payments") Broadly speaking, we are not "solving" gambling with these ideas; we are, as a society and sociopolitical economic system, pulling levers to arrive at the intersection of harm reduction and rights impairment. Some gambling, but only so much, for most but not all.

      (work in finance, risk management, fintech/payments, etc)

    • pstuart 6 hours ago

      As someone who believes in legalizing all drugs and in general "personal freedoms", I'd add recreational drugs to this list.

      The demand will always be there but there should be strong incentives to not incentivize use (e.g., the Purdue Pharma debacle). We're better served by having these markets addressed by legit players rather then criminal cartels.

      I'm not sure what the best solution is, but unfettered promotion to consume is not the way.

    • rafale 6 hours ago

      Gamblers know the odds are stacked against them yet they end up stuck in a psychological prison within their own brain that they can't escape from even if they realize what they do is harmful.

      Maybe a better law: check id, you are not allowed to take from any gambler more than 10 bets a year and no bet can be over 1k.

      For big gamblers, we can have "qualified gamblers" rules like we do for qualified investors.

      Funny how we don't let average people invest in some stuff but we let them gamble.

      For offshore gambling pursue them aggressively if they serve US clients.

      • no_wizard 5 hours ago

        >For big gamblers, we can have "qualified gamblers" rules like we do for qualified investors.

        This is actually a take I haven't seen elsewhere. Yes, we do protect investors at least marginally better (lots of people still get fleeced with little recourse, unfortunately) but conceptually, this is a very interesting idea.

        The fact that gambling exists on a loophole of being "for entertainment purposes only"[0] isn't a good enough distinction to me.

        [0]: This is a brief one sentence summary of it. There's actually a bit of nuance involved depending on a number of factors, but essentially the core presume rests on some version of this.

        • skippyboxedhero 5 hours ago

          His take isn't new. It is deployed in part in the UK. Effectively, gambling companies adopt the role of the state conducting a full audit into your personal circumstances, income, assets, bank statement, utility bills to work out whether you can gamble.

          I would hope that I don't need to explain why this isn't a good idea. But the one you may not have thought of: gambling companies love this because small companies are unable to audit, margins in the sector collapsed when activity moved online, that has stopped AND they are able to target customers who they don't want to deal with, before these rules it was difficult to identify customers who would take their money, now they have your passport, your address, your bank statements, they know where your money comes from (professional gamblers can still use beards but in the UK, students used to be very popular beards...that has stopped, regulators have also brought in rules to prevent beards being used as part of the changes above...the "neoliberal" US doesn't have rules anywhere close to this, it is complete madness).

          • no_wizard 4 hours ago

            There's a difference here between the concept and implementation though.

            I agree, giving up that much information to a third party, opens too many risks for me, and I don't want it to be standard.

            However, I'm sure there is some middle ground here that isn't so violating to your privacy. Like mentioned before, having a default limit that can only be surpassed if you're willing to go through some form of qualification. The limit can be set in place without any audit required, if its low enough.

      • mrguyorama 5 hours ago

        Why go through all this effort just to enable an industry that does nothing but take a profit off of random chance?

        Just fucking ban it.

        Decriminalize low value bets between average people maybe but there's zero reason we need a gambling industry.

        It is impossible for this industry to behave. Just kill it.

        Your average Fent dealer isn't this predatory FFS

      • skippyboxedhero 5 hours ago

        Gamblers know the odds are stacked against them and still gamble...because it is fun.

        You realise that people waste their money on things that are significantly less understandable than gambling. Do you see someone driving a Ferrari and seethe with rage because Ferrari doesn't run a "qualified driver" program?

  • loeg 2 hours ago

    Matt Stoller is an idiot, but it's hard to disagree with the thesis.

  • thrill 7 hours ago

    “Take athletics. Americans love sports, and that cultural centerpiece is being corrupted in an orgy of greed and speculative ferver.”

    Professional (and collegiate) athletics has always been corrupt - now it’s just more visible.

    The only thing needing abolishing is the advertising of gambling.

  • aeternum 2 hours ago

    Nice try MGM Grand.

  • mattmcknight 6 hours ago

    I am really tired of the lazy argument style of using "corporate" as a synonym for "bad". I too think it's bad to encourage addictive gamblers. I don't care if it is corporate, individual, or state run.

    • loeg an hour ago

      Matt Stoller is a leftist and views everything through that lens. I agree the framing is unfortunate. On the other hand, if you ignore the unnecessary "corporate" part, he's basically right.

  • mberning 6 hours ago

    I don’t have an overly paternalistic view of the government. I’m rather libertarian in that regard. But is it too much to ask that we place some guardrails on things that are know to have trouble with? Smoking, drinking, gambling, etc.

    I certainly feel that people should be able to do it if they really want to, but making it super accessible and highly advertised seems like a bad idea.

    • dinkleberg 5 hours ago

      Agreed. Aside from actions that harm others (like theft, murder, etc.) the government shouldn’t be policing what individuals do. But it should absolutely protect the citizenry from malicious businesses whether it be praying on addictions like gambling and smoking, data privacy, polluting communities, and any other antisocial behaviors that harm the people.

    • skippyboxedhero 5 hours ago

      There are guardrails. Gambling is legalised to introduce guardrails so that regulated providers can exist and provide a product that stops people using offshore.

      Neither accessibility or advertising impacts rates of addiction. It is a real addiction. Does a lack of advertising stop heroin use? Behave.

  • skippyboxedhero 5 hours ago

    Predictably gets several things wrong.

    1. Gambling is a real addiction. It is quite strange that someone using the term "Addiction Markets" fails to understand this. People who are gambling addicts were gambling before it was legal, they were just getting their legs broken in a way that was non-visible to you.

    2. If you ban gambling, the ability of people to gamble online is not reduced in any way. None. The US offshore market was the biggest sports gambling market in the world before it was legalised. Not even close.

    3. I would take a close look at how offshore gambling operators work before casting aspersions about onshore. Onshore, providers are working with regulators to an extremely significant degree. Offshore, sites will advertise that you can gamble on their site if you are on an onshore ban list. If onshore providers are so terrible, why is this the case?

    4. The attempt to say that lotteries are addictive is just nonsense. Generally, there is a very poor understanding of what gambling addiction is (again, point 1). Certain games are designed to appeal to gambling addicts (again, the most prevalent ground for these was...the US...before online gambling was legal, biggest market by far, almost all the large companies making these games come from the US), those games are harmful. Lottery, sports gambling, raffles, DFS, etc. lack all of these properties. In particular, providers will often use virtual events (virtual horse-racing) to try to mimic the properties of more addictive products (with relatively little success)...because the original thing is not as appealing to addicts.

    5. It is correct that the UK has "stake limits" (not quite sure what the author thinks this...all regulated US providers also have these, some states also have deposit acks...which would be beyond the UK standard, I would say many US states are ahead of the UK) but this is only on certain kinds of machines. The author spills a huge amount of words, talks about Trump, talks about the 1980s...but doesn't seem to talk about these machines, which are more prevalent in the US, at all. The author doesn't say anything about the issues in the UK being the same. VIP programs in the UK aren't regulated in any way different to the US (providers have no market lists). There is one important difference: in the UK, the government has given gambling providers that powers to perform extensive background checks, they take your income, an audit of your assets and then decide whether you can use their product...people opposed to gambling never mention this. How does that fit with neoliberal? A company being given the same powers as regulators?

    6. There is an issue with corruption in the US. There is no coincidence that the law on online gambling changed within a few months of one of the largest donors blocking this. Both sides benefitted from this as the largest Democrat donor in those years was the Las Vegas casino workers union. Again, because this corruption meant that some kinds of gambling didn't happen...no mention. This was, we now know, hundreds of billions in value generated by paying politicians hundreds of millions a year...no mention.

    7. The author appears to be unaware that DFS existed after UIGEA, not "laughable"...just a basic understanding of the sequence of events.

    8. Gambling is not inherently addictive. Many things that are legal in the US are not only inherently addictive, but are inherently harmful. Liberals care about you losing your money when you buy a $5 scratch-off, they don't care about you losing your mind with mind-bending psychoactive substances.

    • fwip 11 minutes ago

      > Liberals care about you losing your money when you buy a $5 scratch-off, they don't care about you losing your mind with mind-bending psychoactive substances.

      It's hard to take anything you say seriously if you insist on being this disingenuous. You could just as easily say "Liberals care about people being financially ruined and driven into homelessness, but they don't care about you sharing a doobie on the weekend with your bros."

  • ToucanLoucan 7 hours ago

    > A quarter of bettors can’t pay a bill because of their wagers, a third have gambling debts, more than half carry credit card debts, and a quarter of them are afraid they can’t control their gambling.

    No way. It's almost like these are addictive products being engineered to be as addictive as possible and deliberately punch people's brains in such a way to make them stay. That's so weird.

    • supportengineer 6 hours ago

      >> addictive products being engineered to be as addictive as possible and deliberately punch people's brains in such a way to make them stay

      The exact same argument could be used to make social media illegal.

      • skippyboxedhero 5 hours ago

        Hopefully, the responses to this have highlighted the kind of people you are dealing with.

        No-one can use social media because some people in our society can't control themselves. Socialise the losses.

      • ToucanLoucan 6 hours ago

        Fuck yeah let's do it.

      • cyberax 6 hours ago

        You're saying it as if it's a bad thing.

        Limiting social media to be only used for communication, and not algorithms is a good thing.

      • immibis 4 hours ago

        ...Good?

  • daft_pink 7 hours ago

    Should be abolished, but please leave the prediction markets and just limit participation to a small number.