The Dangers of Problem Gambling in Mobile Sports Betting Apps
8.21.2026
The increasing prevalence of mobile sports betting and prediction markets comes with an increase in problem gambling.
The New York State Bar Association hosted a seminar on the rise of mobile sports betting and prediction markets, which detailed how these platforms can feed into problematic gambling behaviors.
Katie Mibaum, team leader at the New York Council on Problem Gambling, led the webinar.
“We define gambling as risking something of value for the chance of a reward,” said Mibaum. “We think of the something of value being a financial currency, and most of the time, that is correct. But something of value can be very subjective to the individual.”
For example, something of value could be a paper that a person spent a lot of time writing.
Gambling becomes a problem behavior when it interferes with one’s life and responsibilities, like spending money that is supposed to pay bills or checking scores during a work meeting.
“Having a familial history or a personal history with addictions in general also puts you at risk, even if you are a non-gambler,” said Mibaum.
Another issue is “chasing” bets, or betting more in an attempt to recoup a loss. A responsible gambler is able to stick to self-imposed limits, like only spending $300 or leaving a casino after two hours.
In 2022, New York State legalized online sports betting for people 21 and older. On these websites and apps, players can bet on a variety of outcomes – including who wins, which team prevails on the coin toss, how many touchdowns there will be, the margin of victory, and more.
By 2025, nearly $58 billion in bets had been placed, according to the New York State Gaming Commission.
Mibaum said that mobile sports betting apps are risky for problem gamblers. One factor is that the ubiquitous advertising that promotes the apps targets a young male audience, especially during sports games.
“Younger folks might not be as aware of media advertisement, and might not be aware that they’re being targeted with a lot of these different ads,” said Mibaum. “They’re showing you Jamie Foxx in a really sharp suit, getting out of a really fancy car, and saying BetMGM is how he’s getting this great wealth and great fortune – and not the fact that Jamie Foxx is a very good actor and was a musician before that.”
Another risk factor for problem gambling is that mobile sports betting apps are always accessible and always operational. A person can wake up at 3 a.m. and bet on a cricket game on the other side of the world.
“If someone is struggling with alcohol or with drug use, we have in our minds what that would look like… and how that person might act in a certain way,” said Mibaum. “That’s really not the case with someone that’s struggling with their gambling habits. It’s so easy to hide. It’s such a personalized struggle when people are going through it… There’s no face of [problem] gambling. It really can impact anyone – of any tax bracket, any type of life experience, at any point.”
Prediction markets are another venue for online betting. On these websites, people 18 and older can buy contracts tied to the outcomes of real-world events – not just sports, but also election results, the economy, weather, reality TV, geopolitics, and more.
“You can truly invest and create these contracts on any sort of activity you can possibly think of,” said Mibaum. “The prediction market, similar to the mobile sports betting platform, allows for that 24/7 engagement loop. There’s constantly breaking news, there’s constantly events all over the world.”
Prediction markets are regulated under the Commodities Futures Trade Commission. New York State Attorney General Letitia James has filed lawsuits against prediction markets Coinbase, Gemini, and Kalshi, arguing that their activities constitute illegal, unlicensed gambling operations and should be regulated by the state.
Mibaum said help is available for people struggling with problem gambling, including resources available through the New York State Office of Addiction Services and Supports and the New York State Bar Association’s Lawyer Assistance Program.
The webinar was sponsored by the association’s Lawyer Assistance Committee and Sports Committee.
