US Voters Reject Gambling Expansion Despite Record Industry Spending

The gold rush atmosphere in the American gambling market has received a significant reality check. While operators have been announcing new record revenues almost monthly in recent years, a different picture is emerging at the grassroots level. During the recent midterm elections, citizens in Nebraska, Indiana, and Virginia rejected various proposals for the expansion of the sector. What makes this particularly noteworthy is that the gambling industry invested more money than ever before in advertising campaigns to influence public opinion. It seems that the mere prospect of additional tax revenue is no longer sufficient to brush aside deep-seated concerns regarding gambling addiction and crime.

In Nebraska, the failure was particularly pronounced. The goal was to enable online sports betting via the state's licensed racetrack casinos. However, the measures failed with 54 percent against 45 percent of the votes. Even a companion constitutional amendment, which was intended to pave the way for this change, was rejected by an almost identical margin. The defeat is a bitter pill for the industry's heavyweights, as they had invested heavily in the campaign. The rejection occurred despite aggressive funding of the committee behind the initiatives. It is clear here that money alone does not win elections when moral and social counterarguments carry more weight.

Numbers and facts

The financial dimensions of the campaigns were gigantic. Of the total $22.5 million available to the pro-gambling committee, $20.8 million came from DraftKings and FanDuel alone, the two largest online sports betting platforms in the US. In Indiana, voters in the three counties of DeKalb, Allen, and Steuben rejected casino expansion with majorities of 64.6 percent, 59.6 percent, and 58.7 percent, respectively. In Virginia, plans for new satellite casino facilities in Amherst County and Pulaski also failed at the ballot box.

A look at the national development illustrates the concerns of citizens. Since a landmark US Supreme Court decision in 2018, the market has exploded. Total sports wagers skyrocketed from $4.9 billion in 2017 to a massive $121.1 billion in 2023. Notably, 94 percent of these wagers in 2023 were placed online. This development has a dark side: national online searches for help with gambling addiction rose by 23 percent between 2018 and 2024, equating to approximately 7.3 million searches.

Background

Opposition was led by prominent figures. In Nebraska, former football coach Tom Osborne, along with 45 other athletes and coaches, stood against the plans. They warned of game manipulation, bribery, extortion, and threats against athletes and officials. In one case highlighted by the FBI, a bettor sent racial slurs and graphic death threats to college and professional athletes because their performances did not align with his wagers. Such accounts have clearly left a deep impression on voters.

Jeanne Seaver, founder and president of Moms Against Gambling, sees the election results as a public awakening. She reports on tragic individual cases, such as the suicide of a young man due to sports betting debts. According to Seaver, the industry specifically uses video games and smartphones to target children.

"I think that people are basically waking up finally. There’s no amount of revenue that justifies the human tragedy that comes with statewide sponsored gambling." - Jeanne Seaver, Founder of Moms Against Gambling

Why it matters for German players

The situation in the US shows what happens when a market explodes in a very short time almost without guardrails. For players in Germany, the State Treaty on Gambling 2021 (GlüStV 2021) provides a much safer framework. While in the US, debates are now being held retroactively about advertising bans and restrictions, these are already firmly anchored in Germany. German players benefit from a strict deposit limit of 1,000 euros per month across all providers, monitored by the central LUGAS system. Furthermore, the stake limit of 1 euro per spin on virtual slot machines protects against rapid, high losses.

A significant difference is the role of the Gemeinsame Glücksspielbehörde der Länder (GGL). It maintains an official whitelist, featuring only providers that meet extremely high requirements for player protection. In contrast to the often unfiltered advertising messages in the US, advertising in Germany is strictly regulated, especially to protect minors and vulnerable persons. Anyone playing with a provider licensed in Germany has the certainty that fairness and player protection are state-controlled, rather than having to rely on the "Wild West" of US markets.

What it means for GGL-licensed casinos

For providers with a GGL license, the developments in the US confirm the importance of a sustainable business model. While US providers like DraftKings and FanDuel are now facing massive headwinds and potential federal advertising bans through legislative initiatives like that of Representative Paul Tonko, German providers already have stable regulatory conditions. The GGL whitelist is a seal of quality that creates trust. In the US, by contrast, there is now discussion about banning gambling advertising from television and radio entirely, similar to tobacco advertising. German licenses already focus on prevention rather than retroactive damage control, which ensures the long-term integrity of the market.