Test Drive for Sports Betting

This article explores the relationship between pay-to-play (P2P) fantasy sports and sports betting, highlighting the potential risks associated with the former. It shows that playing P2P fantasy sports can lead to higher levels of sports betting and online gambling, especially among fans who are high in materialism. P2P fantasy sports providers are using this trend to grow their business by including sports betting alongside their fantasy offerings. The article raises concerns about the negative social costs of gambling and the potential for problem gambling, especially among minors and college students. Fantasy sports contests that lead to cash rewards may condition fans to be more open to traditional sports betting and other online gambling activities. The article highlights that success in fantasy sports can give players a false sense of expertise and cognitive distortions. Finally, it reveals that sports fans who rate high in materialism are likely to pursue games that offer a chance to win cash or other prizes.

Authors of this review:

Nikita Goncharenko

Date of Publication:

19/03/2023

Academic Reference:

Houghton, D., Nowlin, E. and Walker, D. (2019). From Fantasy to Reality: The Role of Fantasy Sports in Sports Betting and Online Gambling. Journal of Public Policy & Marketing. 38.

Tags:sports gambling

Key Ideas

Pay-to-play (P2P) fantasy sports may lead to higher levels of sports betting and online gambling.

Fans with higher levels of materialism tend to engage in direct sports betting, while fans with lower levels of materialism tend to engage in fantasy sports.

P2P fantasy sports providers see an opportunity to grow their business by including sports betting.

Fantasy sports contests that lead to cash rewards may condition fans to be more open to traditional sports betting and other online gambling activities.

Policy makers are concerned about vulnerable consumers, such as minors and college students, and the potential for problem gambling and negative social costs.

Rapid decision making required and the intangible nature of currency online make online gambling more dangerous.

Little research examines the relationship between fantasy sports participation and gambling behavior.

Sports fans consider spending on fantasy sports and sports betting to be complementary investments that enhance the consumption experience.

Daily P2P fantasy sports players exhibit similar behaviors as problem gamblers.

One growing market for fantasy sports is 12- to 17-year-olds.

The activity is difficult to categorize because of its similarity to both sports betting and online gambling.

Fans motivated by materialism will be more likely to bet on sports. Moreover, fans high in materialism are more likely to be lured to other (nonsports) gambling activities.

Continued success in fantasy sports can give the player a sense of confidence and perceived mastery of the game.

The 'skills' developed in these games are actually cognitive distortions.

Companies such as Bovada allow bettors to wire money to an offshore account and place bets on hundreds of contests instantly through an app available in the iTunes App Store.

Sports fans discover online gambling games that they would not know about if not for fantasy sports and sports betting.

Sports fanship drives participation in sports betting, both through participation in fantasy sports and directly.

Citations

External References

Carver, H., & McCarty, K. N. (2013). The effects of materialism, gambling guilt, and religiosity on consumer credit card debt. Journal of Economic Psychology, 39, 278-288.

Crewe-Brown, C., Blaszczynski, A., & Russell, A. (2014). Online sports betting: A longitudinal study of internet gambling behavior. Journal of Gambling Studies, 30(3), 551-564.

Dwyer, B., Shapiro, S. L., & Drayer, J. (2018). The impact of daily fantasy sports on problem gambling: A natural experiment. Journal of Gambling Studies, 34(3), 769-780.

Mahan, J. E., Drayer, J., & Sparvero, E. (2012). The complementarity between daily fantasy sports and sports betting. UNLV Gaming Research & Review Journal, 16(2), 49-59.

Martin, R. J., & Nelson, S. E. (2014). Relationship of fantasy sports involvement with gambling and problem gambling among college males. Journal of Gambling Studies, 30(3), 553-566.