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As anyone who watched the Super Bowl can tell you, there’s something unsavory about the direction this takes our society.

The United States is never going to be Vatican City, but it’s hard not to be a little queasy at public universities emailing students to “place your first bet (and earn your first bonus),” as the New York Times reported Louisiana State University doing, or Texas Christian University partnering with a casino as a “presenting sponsor” for its stadium’s new collection of VIP suites. The speed and intensity with which the gaming industry has swung state governments and public universities illustrate how difficult it will be to trust local legislators to stand up to and rigorously regulate the industry.

Financialized industries under modern, liquid capitalism will never be happy with small-time brands earning modest profits. DraftKings has already gone through a reverse merger with a Bulgarian tech firm and a special-purpose acquisition company. Fanduel was acquired by Paddy Power, that European sports betting giant whose co-founder resigned.

And what about the tax argument? Maybe legalized sports gambling does have a negative side, but the benefits toward various worthy state initiatives are worth it.

The first problem is that government revenue really doesn’t work this way. Revenue is fungible: As soon as legislators see a service being funded by one source, it’s a green light to cut its funding from elsewhere. State lotteries, for instance, were widely created with claims that the revenue would bolster, say, education. But instead of that lottery money being added on top of existing education funding, it often ended up replacing it, as state revenue could be diverted elsewhere. Many states have worse education crises than before lotteries were instituted.

To put it another way, states can raise revenue whenever they want, through whatever means they want. If more money is needed for a particular state service, it can be raised through any type of tax.

It’s also a conceptually odd use of a sin tax, considering that the entire point of one is to discourage activities that are damaging to public or societal health. Alcohol and tobacco taxes artificially raise the market price of those goods because higher prices curb alcohol and tobacco use.

But here, the logic is reversed, and we are intentionally expanding the amount of gambling and gambling addiction in order to juice state revenue numbers.

Gaming out the future

Unfortunately, the horse is likely very far out of the barn. These industries are already huge lobbying players, and there’s very little historical precedent for re-criminalizing liberalized industries. The United States’s expansive First Amendment rights will likely make advertising restrictions difficult to pass, as with prescription drugs.

That said, some steps are available around the edges. Massachusetts banned all college advertising of sports betting, for instance. To a cynic, though, there’s something farcical about this now out-in-the-open and legal industry being “regulated” with bills that would, for instance, require a pop-up message about responsible gambling every 10 wagers.

A strange irony of all this is that sports gambling is not the most profitable, or addictive, industry in this sector. Oddsmaking is a skill; bookmakers can set the odds incorrectly or simply get unlucky and have to pay out considerable winnings.

Which is why, as the Times reports, the end goal is full “casino” gambling on your phone — slot machines, roulette, and so on. The industry has tried to rebrand this as iGaming, with the chief executive of DraftKings telling lawmakers at a conference: “It is time for your state to add iGaming … Not in the future, but now.”

One policy error has already been made across much of the United States. It’s not too late to prevent another one.

Jack Meserve is the managing editor of Democracy: A Journal of Ideas.

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