Don’t Ban Sports Betting—But Let People Opt Out

Rates of bankruptcy have risen among young men in states that have legalized sports betting apps. With political fervor mounting against the legitimacy of the gambling industry, it’s time for gambling apps like FanDuel and DraftKings to upgrade their offerings.

In a wide-ranging conversation with Tucker Carlson earlier this month, centrist commentator Saagar Enjeti called for banning gambling apps. The Supreme Court struck down the federal ban on sports betting in 2018; however, states still have the power to pass their own laws. Online sports betting is currently illegal in 18 states. Lawmakers in Florida, Vermont, Mississippi, New Jersey, Maryland and Connecticut have filed bills to reverse the legalization of sports betting.

When it comes to protecting consumers from addiction, gambling apps have a fairly negative reputation.

Online gambling platforms make most of their money from 3% of gamblers (“whales”). DraftKings, a popular online sports betting platform, employs “VIP hosts” who make phone calls to “whales” every single day to encourage them to bet more money. It’s because of predatory business models like this one that people like Enjeti support current bills aimed at imposing massive restrictions on gambling, but banning a recreational activity is not compatible with America’s pro-liberty tradition.

That might not stop federal regulators from imposing harsh restrictions on sports betting. The Federal SAFE Bet Act, sponsored by Paul Tonko (D-NY) and Richard Blumenthal (D-CT), would impose restrictions on sports betting that would affect all users, not just addicts. The bill includes provisions which have nothing to do with gambling addiction, such as a ban on Proposition Bets (bets that some particular thing will happen in the game rather than a bet on the outcome of the whole game). This bill is backed by the same anti-liberty activists who pushed excessive tobacco restrictions.

Gambling services like FanDuel and DraftKings should respond to this backlash by offering a proactive solution on their terms: Allow gambling, but let players voluntarily restrict themselves, like Odysseus tied his hands when he passed the Sirens.

Gambling websites and apps should display a red STOP button shaped like a stop sign in the top left corner of the screen. When a user clicks the stop button, they should be able to block themselves from the app for 3 days, 7 days, 30 days, or any time period the user decides on. The user should also be added to the gambling company’s “do not call” list for that period.

The stop sign button gives maximum respect to individual choice: both the choice to indulge in vice and the choice to abstain from it.

In a country with a truly and completely unregulated free market, people would be allowed to sign a contract that let enforcers physically drag them out of liquor stores or casinos, or otherwise physically prevent them from indulging in addiction. But because our legal system doesn’t allow people to sign contracts giving another person the right to assault them, there is a limited market for businesses that enforce self-control. Current tools like Betblocker let users block gambling sites, but since they can be uninstalled in a moment of weakness, their effectiveness is limited. It would be more effective if the gambling platform itself provided a stop sign button to block themselves.

As a technical matter, the stop sign button should work with ISPs to block gambling URLs. To prevent VPN circumvention, ISPs could temporarily suspend internet access if a user activates a VPN during their self-ban period.

The stop sign button could also be used for other kinds of addictive online content, such as pornography, online video gaming, or even some types of social media.

Libertarianism is about respecting the ability of each person to be the architect of their own life story.

Usually, what someone truly wants is the same as what they want at the moment. But with addiction (the old-fashioned term is vice), the two can diverge. One might want to lead a life free from gambling or doom scrolling, but find that in the moment one wants to indulge.

Allowing people to tie their hands like Odysseus did when he passed the Sirens respects people’s deepest desires. This could be a principled and general manner of addressing vice. You should be allowed to peddle any vice, but you should give your customers the option to opt out.