How to reduce gambling addiction among youth in the sports betting market - eKYC solutions!

The U.S. sports betting market has experienced tremendous growth in recent years. In 2022, sales increased by a remarkable 75% compared to the previous year, making it the fastest-growing sector among all commercial gaming industries.

What has driven such rapid growth?
There are two main reasons for this expansion.

First, after the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) in 2018, many states began legalizing sports betting. Currently, 33 out of 50 states—approximately two-thirds—have legalized it, including New Jersey, Nevada, Pennsylvania, Indiana, New York, and Illinois. This legalization not only offers new entertainment for sports fans but also positively impacts the economy.

The second reason is the advancement of online and mobile platforms, which have made sports betting more accessible and convenient. During the pandemic, systems that allowed people to bet from the comfort of their homes while watching games became particularly popular. Additionally, the emergence of data analysis and artificial intelligence-based prediction services has provided bettors with better insights and more information.

Social Impact of Sports Betting

On the positive side, sports betting has created new jobs and revitalized the economy. Experts predict that the U.S. sports betting market will continue its steady growth, which will also have positive effects on advertising, technological development, and related industries. Many states now operate sports betting under their own regulatory frameworks, with some already generating hundreds of millions of dollars in revenue.

However, on the negative side, there are growing concerns about gambling addiction and its associated social problems. Therefore, it is essential to continuously monitor the growth of the U.S. sports betting market and ensure that it develops in a way that meets social responsibilities.

Negative Effects of Sports Betting

1. Increase in Gambling Addiction Among Young People

With the spread of sports betting apps, gambling addiction among young people, including college students, is worsening. Easy access via mobile platforms is exacerbating these problems. A meta-analysis conducted by professors at the University at Buffalo found that one in 10 college students are pathological gamblers, significantly higher than the 2 to 5 percent of the general U.S. population estimated to have a gambling problem. Other studies report lower numbers for student gamblers but still higher than the overall pathological gambling population.

Additionally, a survey of 3,527 Americans aged 18 to 22—primarily college students—released in April by the National College Athletic Association (NCAA) found that nearly 60% of respondents bet on sports, with 4% betting daily. About 6% reported losing more than $500 in a single day.

2. Threats to Sports Integrity

The legalization and proliferation of sports betting can lead to issues such as match-fixing and manipulating results. Recently, concerns about fairness have been heightened due to incidents involving high-profile athletes, raising questions about the integrity of sports.

3. Use of Artificial Intelligence (AI) and Legal Risks

AI technology is widely used in the sports betting industry for calculating odds, predicting outcomes, and fraud detection. However, this has also introduced emerging legal and ethical issues related to the use of these technologies.

4. Blurry Border with Illegal Gambling

Some platforms operate in a gray area between legal and illegal gambling, leading to friction with regulators. For instance, certain platforms have been deemed illegal in some states and have been ordered to cease operations.

5. Social Impact of Gambling Advertising

The increasing volume of gambling advertisements during sporting events can normalize gambling, particularly impacting youth negatively. Some experts argue that stricter regulations on gambling advertising are necessary to mitigate these effects.

To ensure the sustainable development of the sports betting industry, these issues must be addressed. Industry stakeholders and regulators must work together to foster a culture of responsible gambling and implement measures to protect users, particularly vulnerable groups such as young people.

Social and Economic Issues in Sports Betting

A growing body of research suggests that this newly emerging industry is generating billions of dollars by creating and exploiting a generation of irresponsible gamblers. This has serious economic and social consequences for both individuals and society as a whole. Addressing these issues is crucial for the sustainable development of the sports betting industry. Industry officials and regulators must continue their efforts to foster a culture of responsible gambling and protect users.

ARGOS Identity's Innovative Identity Verification Service

The ID verification service provided by ARGOS Identity ensures fast and secure user authentication, reducing the risk of fraud while creating a trustworthy environment for bettors. As user trust and data protection are critical to the rapidly growing online betting industry, ARGOS' ID verification service offers:

• Fast Integration: System integration is completed in just one day.

• Operational Efficiency: Efficiency improves by 300% after implementation.

• Customization: Companies can tailor their authentication policies, including automation levels and duplicate account management.

• Security: Strong encryption ensures full compliance with privacy regulations such as GDPR.

Partnership with Stadiobet

Recently, ARGOS Identity entered into a partnership with Stadiobet. Through this collaboration, ARGOS Identity delivers a robust identity authentication solution to the global sports betting industry. Stadiobet users benefit from a quick and easy verification process while ensuring the platform is safeguarded against illegal users and duplicate accounts.

ARGOS' advanced AI technology accurately recognizes ID cards from over 200 countries and achieves facial recognition accuracy of over 99.996%. In addition, the latest Liveness technology detects fake IDs and faces, delivering a high level of security for both users and the platform.