Legalizing sports betting in Massachusetts doesn't put much of dent in illegal market

One of the most prominent arguments in favor of legalizing sports gambling in the United States has been the urgency to crack down on the illegal market and provide consumers with a regulated alternative that promotes safer gambling practices.

Illegal gambling activity in Massachusetts remains unchanged

However, a new study from the UMass School of Public Health and Health Sciences at the University of Massachusetts puts paid to these claims, as researchers have found out that the impact of legalization has not been that strong on illegal sports betting.

In Social and Economic Impacts of Gambling in Massachusetts, researchers observed the period of 2022 – since the market legalization in August - and 2023 concluding that the number of monthly gamblers who continued to use illegal gambling services remained unchanged.

Naturally, there has been a notable increase in the players engaging in the regulated market. The study tried to best understand how consumer habits have been impacted by the legalization of sports gambling, too.

For example, when asked if they would have engaged in sports gambling even if the activity was not regulated in the Bay State, 53% of respondents confirmed that they would have continued gambling anyway.

The latest data, suggesting that the legal market has not led to a significant drop in the illegal gambling market is nothing to worry too much about, suggests researcher Rachel Volberg, as recapturing the market from the offshore market is usually a long process.

The research was presented during a Massachusetts Gambling Commission meeting last week, and it brought light to the persisting problem of the offshore market continuing to command significant interest in the Bay State.

Massachusetts wants to promote regulated sports gambling better

For one, this could be, as Volberg said – a matter of time. Commissioners have suggested that the findings are useful as they could serve as the basis for calibrating the way the regulated market is promoted, with the regulator directing public awareness campaigns for the sector.

Another matter could be the fact that many popular offshore gambling sites are popular to this day and accessible. A handful of states in the United States, among which Ohio, Connecticut and Michigan have asked Bovada, a popular American-oriented betting and gaming brand, to cut access to local players.

Although the research identified steady numbers of illegal sports betting still, it similarly focused on the prevalence of problem gambling, trying to get a better understanding of what drives gambling-related harm.

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