Over the last several days, I’ve discussed the difficulty that esports teams, leagues, players, and developers face. But those may pale in comparison to what may be coming: an unholy alliance between esports and sports betting.
The sports betting industry is anxious to connect with college students, who are among the wagering industry’s most prized targets. More than half of all college students say that they have gambled on sports. One in three college students say they gamble online. One in four college students say they have a gambling problem.
That betting pattern continues after graduation. A survey in 2021 found that nearly half of college graduates placed bets on sporting events, while fewer than one-quarter of high school graduates did.
More troublesome, multiple universities have signed partnership agreements with the nation’s largest sportsbooks – including Michigan State University. These partnerships provide an ongoing revenue stream for the universities’ athletic programs, as well as access to the schools’ vast alumni networks for the sportsbooks.
Since the US Supreme Court struck down prohibitions on online sports wagering in 2018, 70% of states have legalized sports betting and/or online gambling. These states are naturally motivated by a new tax revenue stream, but the impact on individuals has been staggering. Since sports betting prohibitions were invalidated, Americans have wagered nearly $250B with US sportsbooks. Experts estimate that between 1%-2% of Americans will develop a gambling addiction at some point in their lifetimes. The average loss varies by gender. A man with a gambling addiction is likely to lose between $55,000 and $90,000. A woman with a gambling addiction is likely to lose about $15,000. Twenty percent of all problem gamblers declare bankruptcy as a way to relieve their debts.
Esports audience are a desirable target for sportsbooks
It remains to be seen whether sportsbooks will fully embrace esports as a wagering target; however, esports betting exists today, and casinos and sportsbooks are undeniably interested in pursuing the exact same demographic that engages with esports – college students.
At the very least, it is unseemly to prepare students to work in an industry that grinds employees up and spits them out with unreasonable work expectations and summary dismissals; unstable and unsustainable franchise arrangements; disreputable tournament organizers; unsavory sponsorship deals; minimal opportunity to break into professional play as an adult; and rampant gender discrimination.
Community colleges should be about building our community. It would be hard for WCC to demonstrate the growth of a viable esports industry in Washtenaw County. In the very best light, WCC is training workers to leave both Washtenaw County and the State of Michigan. At the worst, it is training workers to take positions in a brutal industry that does not respect the dignity of its workforce. It also offers up students as grist for the addictive and ruinous sports betting mills.
Washtenaw County taxpayers don’t fund WCC to prepare our students to work elsewhere, yet that’s exactly what’s happening here. There are many opportunities for our residents to succeed here, and to build opportunities in Michigan. WCC should focus on building and supporting industries in Washtenaw County.
Yet another minus from the WCC Administration. Does anyone there think these things through? The WCC Administration seems to have chronic amnesia when it comes to remembering where their exceptionally generous funding comes from. Prior to approving any program, the WCC Trustees should require the Administration to demonstrate the actual benefit of a program to the Washtenaw County taxpayers who pay for it.
Photo Credit: Focal Foto, via Flickr
