We are in the middle of what I like to call “peak sports.” At the time this will be posted, Major League Baseball and the WNBA will have just crowned their champions all while we are in the thick of the popular college and professional football seasons. At the same time, the NBA and NHL are now starting to play games.

Along with America’s love affair with sports, another related industry has reached a new high. The legal sports betting industry in the United States has experienced significant growth in the last 5 years. Gross gaming revenue from sports betting in the US skyrocketed from $4.3 billion in 2018 to $10.9 billion in 2023. Americans wagered a staggering $119.84 billion on sports in 2023, a 27.5% increase from the previous year.

This rapid growth was sparked by the Supreme Court’s decision in 2018 to overturn the Professional and Amateur Sports Protection Act (PASPA). This move has paved the way for 38 states to legalize sports betting. Legal sports betting has always existed in sports books within casinos and racetracks, but you had to be onsite to place a bet in the past. Mobile betting apps and user-friendly platforms have made it much easier for people to place bets.

As a financial coach, I can tell you that the mixture of sports betting with the 24/7 access of a mobile phone can be a pernicious mixture for people. Prior to the legalization of online sports betting, it was already proven that mobile phones often lead to poor financial habits. I talk to people regularly who must limit access to apps like Amazon and eBay to control their compulsive spending.

Something you enjoyed while you were only in Las Vegas for a weekend can now be coupled with the tools that make us scroll and scroll all day. Push notifications that were used to remind you of an item in your cart can now remind you to bet on an upcoming game or match. When you couple this with social media where individuals are posting their wins, the fear of missing out (FOMO) can make sports betting seem very enticing. What the person on the other side doesn’t know is the person bragging about how they made 50x their bet on a parlay also lost the equivalent 100x their bet the weeks prior on missed bets.

The Mayo Clinic offers a checklist of questions to determine if sports betting has become a problem. If you or someone you know is struggling with a gambling problem, call 1-800-GAMBLER or visit this site. Here are some strategies to prevent sports betting from becoming a threat to your financial wellness in the first place:

Set Your Limits and Stick to Them:

• Have a Budget: Determine a specific amount you can afford to lose and stick to it. Many of these sporting betting companies offer you a welcome bonus for trying their app. Maybe only use what you were given as a guideline.
• Limit Time: Set a time limit for your betting sessions. If you find you make poor decisions after a certain time, there are ways to restrict your own apps after that time.
• Set a Loss Limit: Establish a maximum loss limit and stop betting when you reach it. This was a bit easier when sports betting was in person and in cash, but you can set limits virtually as well.
• Avoid Chasing Losses: Never try to recoup losses by betting more.
• Take Breaks: Step away from betting regularly to maintain perspective.
• Don’t Bet When Upset: If you’re stressed or emotionally unstable, it’s best to avoid betting. Use meditation or exercise to create a mental win streak rather than betting.

So Should You Avoid Online Sports Betting Altogether?

Just because some people abuse something does not make it inherently bad for everyone, but it is important to know yourself. If you have compulsive habits in other areas like spending money online or you spend much of your time online gaming, I suggest not even adding a sports betting app to your phone. I liken it to people who ask me about using credit cards for travel points and cash back. If you had to dig yourself out of significant debt in the past, the possible benefit does not justify the risk. Similarly, if you or those who care for you have noticed a tendency to struggle with sports betting, do not download the app and enjoy your favorite team without stress.