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In Los Cerritos, the expansion of sports betting has ignited a critical dialogue about the industry’s focus on Black communities. This dialogue is a reflection of a larger trend of scrutinizing the tools of the industry across the United States. Various civil rights leaders and analysts are raising alarms, as there is a general worry about potential exploitation, which echoes broader concerns of economic and social vulnerability among African Americans.
The sports betting industry in the U.S., which is dominated by a few major platforms, have met criticism for disproportionately targeting Black Americans. As reported by USA Today, Reverend Al Sharpton has taken these concerns directly to the Federal Trade Commission (FTC), where he has warned about what he describes as a “gambling duopoly”. As Sharpton emphasizes, the big betting companies control a large portion of the mobile betting market, which has created a monopolistic environment which could exacerbate social and financial issues in marginalized communities.
A 2023 NCAA survey found that young Black adults engage in sports betting at a higher rate compared to other ethnic groups. 68% of Black or African American respondents engages in betting, compared to 63% Hispanic or Latino respondents, 55% Asian, and 54% white or Caucasian respondents. Additionally, data shows that African Americans tend to place larger wagers, sparking concern about the marketing strategies of the industry, and how these might be specifically targeting high-participation demographics. One argument raised by advocacy groups related to the focus on Black communities and how this is compounded by broader socio-economic challenges. As a result, it can lead to higher rates of gambling addiction and financial hardship.
In Los Cerritos, local residents are witnessing firsthand how the nationwide betting trend is taking root. Both online betting sites, as well as sports bars, frequently promote betting options by leveraging digital advertisements and in-person incentives. Some of these tactics often includes using cultural ties to sports, especially due to the prominent role Black athletes play in various major leagues including the NBA and NFL.
Comparing the marketing strategies in the U.S. with other countries provide a solid entry point for changes. Take for example Zambia, a country where sports betting is also booming. Here, the strategies used to attract bettors looks different from the ones in the U.S. In Zambia, operators offer a wide range of options, spanning from traditional sports betting to virtual casino games. Although the appeal is broad, the sites also ensure to add warnings from economic experts about the potential harms that gambling can have on financially vulnerable populations. In this way, casino and sportsbook operators can brand themselves and their services, while also keeping a focus on social responsibility.
One operator known for extensive marketing campaigns is Betway Zambia. With a Betway Zambia login, players can access a great variety of sports odds, casino games, crash-games like Aviator, and various jackpots. The campaigns of Betway Zambia use strategic partnerships with known figures from sports, creating trust and enthusiasms among bettors. However, the campaigns also ensure to disclaim some of the potential downsides to gambling.
Comparing the U.S. campaigns with for example Zambia, it is clear that the U.S. is lacking the social responsibility aspect. Reverend Sharpton’s letter to the FTC outlines these risks, where he argues that the power among some of the large betting companies and their associated partners is a threat to fair market practices. Consequently, it is disproportionately impacting Black Americans, who are more at risk to suffer from problematic gambling behaviors.
What Sharpton points out is that when a duopoly has control, consumers suffer, and it is often the most vulnerable among them, including Black Americans, that bear the hardest impacts. This is why the letter calls on regulators to consider in what ways this concentrated market power could weaken consumer protections, and how it might feed into social inequities.
As for now, there has been no response from the major betting platforms regarding neither the dialogue or Sharpton’s letter. Most industry spokespeople have been pointing to their adherence to regulatory standards and their support of consumer education programs, which is highlighted as being evidence of responsible operations.
Critics does argue that such measures are not sufficient enough to deal with the wider socioeconomic consequences of gambling, and that these measures fail to address the deeper structural inequalities which sports betting are perpetuating.
In Los Cerritos, community leaders are assessing what the proliferation of sports betting could mean for families and young adults. Some perceive sports betting as a source of entertainment, while others showcase worries towards the long-term societal consequences.
It is especially the heavily promotion of betting apps on social media platforms popular among Black youth which adds to these concerns.
The sports betting industry is only projected to continue to grow in the U.S., which is why the debate about the impact of the industry on Black Americans is taking place from the local level of Los Cerritos to a national level in the U.S. The push for regulation and fairness from high figures is highlighting the need for a comprehensive strategy, to ensure consumer protection of all groups in society.
