Sports Betting and Prediction Markets Impact Mental Health

(AsiaGameHub) –   A new study by Baptist Health South Florida has examined the impact of sports betting and prediction markets on mental health.

The organization has also investigated how the availability of such products and services has led people to increasingly engage in riskier behaviors, which may result in serious health consequences.

Study Investigates the Mental Effects of Betting and Prediction Markets on Individuals

According to Rachel Rohaidy, MD, a psychiatrist at Baptist Health Miami Neuroscience Institute, the main concern is the widespread presence of prediction markets and sports betting.

Previously, these activities required individuals to visit physical locations, but today they are nearly universally available across most of the country, accessible through handheld devices—significantly increasing ease of access.

“When gambling shifts from a destination activity to something in your pocket, the barrier to entry disappears, along with the natural limit on participation,” Rohaidy stated.

In addition to potential mental health impacts, some critics have raised serious concerns about the fairness of prediction market platforms overall. Hersh Shefrin of Santa Clara University’s Markkula Center for Applied Ethics recently analyzed how platforms like Polymarket and Kalshi are not necessarily fair.

Shefrin noted that a small number of account holders consistently gain disproportionate profits, prompting ethical questions about why these users outperform others despite statistical expectations suggesting otherwise.

Prediction markets are also facing criticism, according to Raphael Wald, Psy.D., a neurophysiologist at Marcus Neuroscience Institute. He highlighted how event contracts may create the illusion that participants have control and agency over outcomes.

Criticism of Prediction Markets Is Widespread, Yet the Sector Continues to Expand

However, Wald observed that similar behavioral patterns seen in traditional gambling users have emerged among those engaging with prediction markets.

Criticism is growing at both state and federal levels, with lawmakers in Congress—including Senator Adam Schiff—arguing that the rise of sports event contracts has altered the fundamental purpose of prediction markets.

Schiff contended that current regulatory frameworks were not designed to handle the increasing use of these products for trading on sports outcomes, even though the Commodity Futures Trading Commission (CFTC), which oversees the sector, is collaborating with major sports organizations to enhance protections against insider trading.

The Associated Press recently interviewed gambling addicts about their perspectives on prediction markets, with several users describing them as “the same” as conventional forms of gambling.

Despite this opposition, companies like Polymarket continue to expand in the U.S., having recently launched its iOS app domestically. Meanwhile, Minnesota is set to become the first U.S. state to ban prediction markets after awaiting the governor’s signature.