Abstract
Public debate on online sports gambling has focused on addiction, consumer harm, and the adequacy of regulation. Survey evidence from Montgomery County, Pennsylvania (n=654) shows that concern about addiction is widespread and trust in gambling operators is low, yet support for legalization and participation in betting remain substantial.
This paper argues that gambling behavior is best understood not as a function of trust in operators alone, but as a function of how individuals evaluate the broader system in which gambling occurs. The findings suggest that participation can persist under conditions of low trust where the activity is perceived as voluntary and where firm incentives are understood to be partially aligned with user outcomes. A pedagogical model is developed in which behavior reflects the interaction of baseline distrust, perceived system legitimacy, concern about harm, and resistance to paternalistic intervention.
1. Introduction
The expansion of online sports gambling in the United States has generated sustained debate about its social consequences. Surveys consistently show that large majorities of respondents believe gambling can be addictive and that advertising and product design may encourage excessive participation. At the same time, public support for legalized sports betting has remained relatively strong. This coexistence of concern and acceptance presents an apparent tension.
Traditional explanations of gambling behavior tend to emphasize either risk perception or exposure to inducements such as advertising. While both factors are important, they do not fully explain why individuals who recognize risk and express distrust toward operators continue to support or engage in gambling activities.
Two features of this system are particularly important. First, gambling is widely perceived as a voluntary activity in which risks are primarily borne by the individual. Second, there is a growing awareness that firms have incentives not only to generate revenue but also to sustain long-term participation.
Legitimacy does not require high trust in firms or regulators. It depends on whether the system is perceived as tolerable, bounded, and consistent with expectations about autonomy.
2. Data and approach
The analysis is based on a survey of 654 respondents in Montgomery County, Pennsylvania, including 201 Republicans, 139 Independents, and 314 Democrats. The survey collected information on support for legalized sports betting, participation in online gambling, trust in operators, trust in regulators, and perceptions of addiction and harm. Open-ended questions were included to capture how respondents interpret the system in which gambling occurs.
The analysis is descriptive and interpretive. It seeks to identify consistent patterns in behavior and attitudes and to develop a conceptual framework that can account for those patterns.
3. Support and participation
Support for legalized sports betting is relatively high across the sample. Among Republican respondents, 69.2 percent support legalization. Among Independents, support stands at 59.0 percent, and among Democrats, 56.7 percent. Participation rates are lower but remain significant: approximately 32.8 percent of Republicans report engaging in betting, compared with 25.9 percent of Independents and 26.1 percent of Democrats.
| Support legalization — Republicans | 69.2% |
|---|---|
| Support legalization — Independents | 59.0% |
| Support legalization — Democrats | 56.7% |
| Participate — Republicans | 32.8% |
| Participate — Democrats | 26.1% |
| Participate — Independents | 25.9% |
Source: CGHA Survey Series, Montgomery County, Pennsylvania (n=654).
The gap between support and participation is notable. Many respondents support legalization without participating themselves. This indicates that attitudes toward gambling are not determined solely by personal behavior but also reflect broader views about policy and regulation. The relatively higher level of support among Republican respondents appears to reflect a preference for limiting government intervention in areas perceived as matters of personal choice.
4. Trust, distrust, and perceived harm
Trust in gambling operators is low across all groups. Fewer than one-third of respondents in each category express confidence in these firms. At the same time, concern about addiction is high, with approximately two-thirds of respondents indicating that gambling poses significant risks. This combination of low trust and high concern might be expected to reduce participation. However, participation persists.
Trust in regulators is somewhat higher than trust in operators but remains moderate. Respondents do not appear to view the system as fully credible or strongly constrained. Nevertheless, this does not lead to widespread rejection.
5. Managed risk and firm incentives
Among respondents who participate in gambling, a more differentiated view emerges. Some respondents note that platforms are taking steps to identify and mitigate problematic behavior, including deposit limits, usage reminders, and self-exclusion options.
These observations do not imply that respondents view firms as altruistic. Rather, they suggest that users recognize that firms have incentives to maintain a sustainable customer base. A user who loses excessively or disengages entirely is no longer a source of revenue. Firms therefore have reason to moderate behavior at the margin.
IMPLICATION This perception introduces a form of partial alignment between firm incentives and user outcomes. Even where trust is low, users may believe that the system contains mechanisms that prevent the most extreme outcomes.
