A 2024 Connecticut study revealed a disturbing reality about the sports betting industry: over half of all sports betting revenue comes from individuals with the most severe gambling problems.
The sports betting sector relies more heavily on problem gamblers than any other form of gambling in the state. Connecticut’s situation isn’t unique—similar patterns would be expected in other states that have authorized online sports betting.
The Numbers Tell the Story
Connecticut gambling revenue from approximately 2% of people with severe gambling addiction ranges from 12.4% for lottery products to a staggering 51% for sports betting, according to research from Gemini Research commissioned by the Connecticut Department of Mental Health and Addiction Services.
The proportion was 21.5% for all legalized gambling combined, making sports betting more than twice as financially harmful as the average gambling activity.
Sports bettors in Connecticut lose over $100 million annually to sportsbooks.
More broadly, researchers discovered that over 70% of all legal gambling revenue in Connecticut is generated by fewer than 7% of residents classified as either problem (1.8%) or “at-risk” gamblers (4.9%).
The Real Scope May Be Worse
The study didn’t determine how much sports betting revenue comes from the additional 5% of “at-risk” gamblers. It’s quite possible that more than 90% of all sports betting revenue is generated by people experiencing some level of gambling problems.
The actual problem gambling rate could be substantially higher than the study’s 7% because many people underreport their gambling activity.
The study found that 30.7% of adults in the state don’t gamble at all, meaning the addiction rate would climb significantly higher as more people try online sports betting. Just 10% of adults in the state reported betting on sports.
The research also noted that, on average, three people are harmed for every problem gambler—including friends and family of the person addicted to gambling.
While sports betting isn’t as popular as other gambling forms, it’s arguably the most financially destructive.
Supporting Research
Other research confirms these Connecticut findings.
A 2014 study in the Journal of Gambling Business and Economics examined the extent to which the betting industry relies on problem gambling. According to this paper—the first of its kind in scientific literature—gambling was even worse than expected.
“By many measures, the online gambling customer base can be partitioned into the vital few and trivial many,” the study concluded. “The 80/20 rule is too generous, with even fewer than 20% of gamblers contributing to the 80% of revenues. Furthermore, the trivial many and the vital few are heterogeneous groups with recreational and disordered gamblers commingling.”
Between 4.6% and 17.8% of players accounted for 80% of gambling revenue.
Global Patterns
The World Health Organization also has data on this topic. According to WHO gambling information, people gambling at harmful levels generate around 60% of global losses. This WHO figure includes in-person gambling, which is slightly less harmful than online betting.
Analysts expect global gambling revenue to reach $700 billion by 2028.
Extreme Examples
Perhaps no company worldwide relies more heavily on problem gambling than the Australian sportsbook Betr. It was revealed in 2025 that Betr relied on just 20 gamblers for half of its revenue—an extreme illustration of the industry’s dependence on those least able to afford their losses.
What This Means
These findings reveal a troubling pattern: the sports betting industry’s business model fundamentally depends on extracting money from people experiencing gambling problems. This isn’t a side effect or unintended consequence—it’s the core of how these companies generate profits.
For policymakers, advocates, and consumers, this raises serious questions about:
- Whether sports betting can ever be “responsible” when it depends so heavily on problem gamblers
- How states should weigh tax revenue against the social costs of gambling addiction
- What regulations might be necessary to protect vulnerable populations
- Whether the industry’s self-regulation efforts can ever be effective given this business model
The data suggests that as sports betting continues expanding across America, the number of people harmed—and the extent of that harm—will likely grow proportionally. The question is whether society will act to address this pattern before it becomes even more entrenched.
If you or someone you know is struggling with gambling, resources are available at 1-800-GAMBLER or through the National Council on Problem Gambling.
