New Study Links Sports Betting Legalisation to Sharp Rise in Problem Gambling Cases

A major research study has found a direct link between legalising sports betting and a sharp rise in gambling disorder diagnoses. The picture it paints is sobering for regulators and operators. Problem gambling cases have surged by 61% in states that opened their markets to legal sports wagering.
The Research Findings
Epic Research's analysis looked at records across 200 million adults, focusing especially on Pennsylvania, New Jersey, and other legalisation jurisdictions. The numbers are striking. Back in 2018, when the US sports betting market opened, diagnosis rates sat at 3 cases per 100,000 patients. By 2026, that had climbed to 4.8 per 100,000 patients.
Younger people have been hit hardest. Those aged 18 to 29 have actually seen their gambling disorder diagnosis rates double since legalisation started.
Here's the thing though: states that have resisted legalisation have actually seen their problem gambling rates decline. That suggests the connection isn't simply a natural demographic trend but genuinely tied to market availability.
Accessibility and In-Game Microbetting
Harry Levant, director of gambling policy at the Public Health Advocacy Institute, points to a fundamental shift in how accessible wagering has become. Before legalisation, you had to physically visit a betting location, which served as an informal friction point. Now? Betting happens seamlessly through mobile apps, with no geographical barriers whatsoever.
In-game microbetting is perhaps the most aggressive form of product innovation here. Punters can place bets on micro-events within matches, with new betting opportunities arising every 10 seconds or faster. It's relentless action, engineered to maximise engagement.
The Broader Ecosystem
The research also flags a complication that's harder to track: unregulated prediction markets like Polymarket and Kalshi. These platforms operate outside state-level gambling frameworks yet offer betting-like functionality. Their growth appears to run parallel with official problem gambling increases, potentially adding another layer to the overall trend.
One more thing worth noting. The researchers found that rising help-seeking behaviour is concentrated in legalisation states, which could suggest increased awareness and better access to support services. That's genuinely positive. But the underlying diagnosis numbers tell a different story about the products and what they're actually doing.