Consumer Risk at the Heart of Idaho Sports Betting Opposition

Nearly seven years removed from the Supreme Court of the United States overturning the Professional and Amateur Sports Protection Act, the legalization of Idaho sports betting remains nothing more than a remote possibility. And just as much as many want to know when or if this will change, they’re also asking another question: Why?

It is a simple yet salient inquiry. And it is an increasingly prevalent one. Just a few years ago, sports betting in the United States wasn’t the majority standard. But now, 38 states as well as the District of Columbia and Puerto Rico offer some form of sports wagering. The number of states will jump to 39 this year, too. Sports betting in Missouri is scheduled to launch sometime between August and December later this year.

The rising popularity of sports betting in the USA makes it harder for Idaho’s gambling laws to continue flying under the radar. Sure, the absence of sports betting in California, sports betting in Texas, sports betting in Georgia, et al. loom larger. The Gem State is a much smaller market than many of the others without legal sports wagering.

Still, when there’s only 11 states that don’t have plans to legalize sports betting, every single one of them gets thrust under the microscope of public curiosity by default. The future of sports betting in Idaho—or lack thereof—remains no different.

With that said, there is an upside, from a national perspective, to this hyper focus. The more attention Idaho sports betting laws get, the more information we receive about why they’re set up as they are now. 

Impact Idaho Sports Betting Might Have on Residents is Fueling Officials’ Hesitance

Previously, we had very little intel on why Idaho sports betting remains illegal. Granted, we have plenty of educated guesses. Chief among them: The Gem State’s heavily conservative-leaning political views. While other “red” states have legalized sports wagering, some of the remaining holdouts—including Utah and Texas—are more conservative than most. 

And yet, political (and religious) views alone are not fueling disinterest among state officials. They are also worried about the impact Idaho online sports betting will have on their residents. As Kevin Hardy of the Idaho Capital Sun writes:

“While states have cheered the new tax revenue from sports gambling, some new studies have linked the burgeoning industry to lower consumer credit scores, higher credit card debt and less household savings. With access on their cellphones, gamblers can bet more often and easily than in traditional casinos, heightening concerns about problem gambling and the financial fallout for sports fans. The rate of gambling problems among sports bettors is at least twice as high as it is for other gamblers, according to the National Council on Problem Gambling.”

This sentiment is front-and-center not just for Idaho sports betting consideration, but for all states. This includes the ones that already legalized sports betting. 

In those instances, states are making a trade-off in the name of tax revenue. Well that, and they are effectively saying that regulated sports betting in the U.S. is better than having people use illegal domestic bookies and offshore betting sites. 

The latter argument makes boatloads of sense. But opponents will point out that it’s difficult to prove the hypothesis. And when you have figures such as double the rate of gambling problems, it serves as a major obstacle in states that have yet to legalize sports wagering.

More Information is Needed on Consumer Trends in the Sports Betting Industry

Just so we are clear: Pretty much all concerns about the adverse impacts of legal sports betting are genuine and fair. Nobody should attempt to dismiss them. 

However, the regulated sports betting industry is not yet seven years old. And in most markets, it is much younger. Many states—such as New York, Kansas, Ohio, etc.—have all launched their services in 2022 or later. 

This timeframe is nothing relative to an entire industry. Markets need to mature and more resources must be invested in additional studies to get a fuller picture of consumer impact. And for what it’s worth, Hardy notes as much in his piece. But he also highlights how the available information works as a roadblock to Idaho sports betting:

“So far, researchers have not reached a consensus about potential harms, though three papers released this year found poor financial results for consumers in states with legalized sports gambling. In a working paper released in August, researchers at the University of California, Los Angeles and the University of Southern California determined access to legal online sports betting led to lower credit scores and higher rates of bankruptcies. That study examined credit bureau data of more than 4 million American consumers. ‘Our results ultimately suggest that gambling legalization does harm consumer financial health,’ the report said.”

This data plays a huge part in shaping Idaho sports betting consideration—or outright disinterest.

Time Will Tell Whether Idaho Changes Stance

Despite current concerns from state officials, we would be remiss to say Idaho sports betting will never be legalized. They do profile as one of the last states that would do it, should they ever. But the industry is still so young and new that both supportive and opposing stances alike can change in a heartbeat.

In tougher cases like Idaho, though, the evolution of sports betting in the United States seems like it will be key. You can envision California sports betting or Texas sports betting eventually making it through for purely financial gain. Those markets are lucrative enough to accept the incumbent downsides.

For Idaho, state legislators may want to see a material shift in how the industry is regulated. How can it be made safer for consumers? What are the actual extent of the known downsides? How can they be addressed? Can anything else be done to not just treat problem gambling, but prevent it?

If and when more effective answers to these questions arise, the chances of Idaho sports betting legalization should improve. Until then, we should not expect The Gem State’s to amend their laws anytime soon.

Take a look at this list of the top online sportsbooks so you can find one that works for all of your sports betting needs: