The Federal Trade Commission should establish a federal regulatory framework for sports betting.

Match-fixing jeopardizes the legitimacy and growth of sports.

Grounds 24 [Dane Grounds, J.D. Candidate, University of Illinois College of Law, 2025; B.B.A.,

Marketing, Honors, University of Georgia, 2021, xx-xx-2024, "PIXELS, PROFITS, AND POLICY: SHAPING THE FUTURE OF ESPORTS BETTING WITH ETHICAL REGULATION, RESPONSIBLE GAMING, AND STRATEGIC INDUSTRY INNOVATION", https://illinoisjltp.com/file/287/Grounds_Final.pdf, DOA 2-8-2026] //JLOH brackets are og While impressive, the growth trajectory of esports brings forth its own challenges, with match-fixing emerging as a particularly pressing issue.131 Match-fixing in esports involves intentionally losing a competition, often for monetary gain through betting.132 This phenomenon poses a serious risk to the legitimacy and growth of the industry.133 A notable example is the case of Lee “Life” Seung Hyun, a Starcraft world champion, who received a lifetime ban for throwing a game at the age of 19.134 The impact of such actions is significant; in esports, a four-year ban can effectively end a player’s career due to the rapid evolution of games and the typically young retirement age of professionals.135 Furthermore, the perception of cheating in esports, including match-fixing, corrupts the integrity of wagers and undermines the stability of betting markets, which rely on the game’s integrity.136 In terms of scale, in 2020, the volume of esports bets was estimated to be around 107 times higher than the volume of prize money, which suggests a considerable incentive for players and teams to engage in match-fixing.137 Cheating, doping, and other unethical practices also impair the industry.138 As the stakes in esports tournaments rise, so do the temptations to employ underhanded tactics to secure victory.139 In esports, common doping substances include Amphetamine and Dextroamphetamine Salts, notably Adderall, which is often used for its ability to enhance focus and reduce fatigue during extended gaming sessions.140 This phenomenon in esports is paralleled by the use of performance enhancing drugs, like anabolic steroids, in traditional sports such as weightlifting and athletics.141 These steroids, designed to mimic the effects of testosterone, are taken by athletes to increase muscle mass and strength, thereby improving their performance in physical competitions.142 Both in esports and traditional sports, the use of such substances represents a significant challenge to the fairness and integrity of competitions.143 In esports, drugs like Adderall can give players an unnatural edge in terms of concentration and endurance, while in traditional sports, steroids enhance physical capabilities beyond natural limits.144 This unfair advantage can skew competition results and undermine the spirit of fair play.145 Integrity in sports betting ensures fairness and unpredictability essential to the industry’s credibility and consumer trust.146 Bettors’ faith in the fairness of sports contests underpins their willingness to participate in betting.147 Unlike casinos, where a known “house edge” may not deter gambling, the perception of fixed sports events can significantly deter betting engagement due to a breach of trust and fairness.148 If bettors believe an event is fixed, it directly undermines the premise that skill or knowledge can influence their betting success, leading to significant loss of trust.149 This perception breach impacts willingness to engage, as the foundational belief in a level playing field is essential for bettors’ participation and trust in the betting ecosystem.150 Unchecked malpractice in esports, including prevalent doping, pose a significant risk by potentially eroding trust among fans, sponsors, and stakeholders. 151 This erosion of trust threatens to severely impede the industry’s future growth and its reputation as a legitimate competitive arena.152 The involvement of minors in esports betting presents a critical issue.153 The ease with which these online platforms can be accessed, and the allure of rapid financial gains pose a significant risk.154 Young individuals attracted by the prospect of easy money may find themselves ensnared in a cycle of betting, leading to potential addiction and financial distress.155 This scenario underlines the importance of stringent regulations and protective measures to shield minors from these dangers.

Well-designed federal regulations prevent addiction by limiting access and protecting the vulnerable.

Altamont-ShVe-Pro-TOC-Digital-Speech-and-Debate-Series-2-4th-Annual-Round-4

The effectiveness of gambling addiction prevention laws depends on their design and enforcement. Well-structured regulations can reduce gambling addiction by limiting access to gambling activities and protecting vulnerable individuals. For example, age restrictions prevent minors from engaging in gambling, lowering the risk of addiction later in life. Additionally, regulations can require gambling operators to monitor players’ behaviors and identify signs of addiction. This may involve tracking spending patterns and offering interventions to those at risk. In this context, trauma-informed care plays a vital role in addressing gambling addiction by recognizing the deeper emotional and psychological factors that contribute to compulsive behavior.

Mitigates - State regulation creates confusion and stifles market growth.

Lauren Fish (J.D. Candidate 2026, University of Maryland Francis King Carey School of Law), An Injured Market: How Federal Commerce Clause Powers and Securities-Style Disclosure Requirements Can Address the Strains of State-Regulated Sports Betting, 20 J. Bus. & Tech. L. (2025), https://digitalcommons.law.umaryland.edu/jbtl/vol20/iss2/4, doa-2-20-2026 (Miller)

Sports gambling needs to be a federally regulated activity to ensure transparency in a rapidly growing market. The current patchwork of state regulations creates far too much confusion within the industry, which stifles its potential growth. As the industry continues to expand, sports bettors deserve more protection and equal access to material information when placing their bets. Bettors should also be entitled to a viable avenue for legal recourse when material facts are withheld. The best solution to regulating sports betting would be for Congress to utilize its Commerce Clause powers and enact a comprehensive federal sports betting act. The act should mandate transparent material disclosures, drawing from the SEC’s 10b-5 standards, and institute robust consumer protections to safeguard bettors in a rapidly evolving marketplace. Additionally, the act should include divisions that address enforcement, compliance, and the establishment of a centralized oversight body to ensure consistent standards across states. The landmark case of Murphy v. NCAA acknowledged the evolving landscape of sports wagering, yet there remains significant room for comprehensive regulation. The ongoing issues surrounding injury reporting in sports have fostered a sense of consumer mistrust reminiscent of the concerns that prompted the government to enact the Securities Acts of 1933 and 1934. Just as those regulations aimed to protect investors from deceitful practices, similar measures are needed in the sports betting arena to ensure that bettors can engage with confidence.

Takeout - State regulations already protect integrity; federal action disrupts them.

SBJ 25 — (Bill Millers, The CFTC must respect state and tribal authority in regulating sports betting, Sports Business Journal, Febuary 27 2025,https://www.sportsbusinessjournal.com/Articles/2025/02/27/the-cftc-must-respect-state-and-tribal-authority-in-regulating-sports-betting/, accessed 2‑12‑2026) //Eliac

Over the last seven years, states have diligently worked to legalize and regulate sports betting, implementing stringent rules to protect consumers, ensure fair play, and generate significant tax revenue, nearly $3 billion in 2024. Today, 40 jurisdictions have established regulatory frameworks that provide crucial oversight for sportsbook operators. These laws mandate key protections, including age verification, geolocation services, anti-money laundering measures, and responsible gaming initiatives. Allowing a nationalized betting market to emerge through event contracts, lightly regulated and absent of these safeguards, would not only severely disrupt an effective framework but fully threaten the very sovereignty state elected leaders have harnessed to legalize — or choose not to legalize — sports wagering.

Turn - Over-regulation pushes consumers to the black market.

Wirtz 25[Bill (consumer policy analyst @ Consumer Choice Center), “Overregulating Sports Betting Only Scores Black Market Wins,” Newsmax, 06-24-2025, https://www.newsmax.com/billwirtz/sports-betting-black-market-regulations/2025/06/24/id/1216255/, DOA 01-23-2026] abhi

Let’s begin with a basic economic truth: When a legal market is smothered by excessive regulation and punishing tax rates, a black market inevitably fills the gap. Legal sports betting apps — where permitted — can offer consumers safe, transparent, and regulated environments.¶ But in many states, such competition is either banned outright or heavily throttled. That leaves room for illegal bookmakers to flourish, often with ties to organized crime, little regard for age restrictions, and zero incentive to protect vulnerable populations.¶ Consider Montana. The state’s only legal sports betting option is run through the Montana State Lottery, which only allows betting on the premises of licensed brick-and-mortar establishments. Smartphone users can download the app, but it becomes functional only when they’re physically inside a betting location.¶ This system is wildly out of step with modern consumer behavior, which demands mobile convenience, not location-based restriction.¶ Worse still, Montana’s SB555 would go even further by expanding the definition of "gambling" so broadly that it might sweep in crypto exchanges and even free-to-play gaming apps.¶ Instead of innovating to provide safe, regulated digital betting, the state is reaching for more prohibitions — an approach that has already failed to suppress black market activity.¶ Taxation is another major barrier. States like New York, Rhode Island and New Hampshire advertise a 50% tax rate on sports betting profits, but due to additional operating costs, effective tax burdens reach a staggering 81%.¶ No other leisure industry faces this kind of punitive financial environment. These high rates make it nearly impossible for legal operators to compete with illicit ones, who of course pay no taxes and incur no regulatory compliance costs.¶ This heavy-handed model is spreading. Massachusetts recently proposed the “Bettor Health Act,” which would raise taxes on digital platforms to 51% — in line with the worst offenders — and add strict advertising bans and daily affordability checks.¶ These proposals, while perhaps well-intentioned, would tie the hands of legal platforms and give illegal operators a wide-open lane.¶ The impact of such policies isn’t just theoretical. The latest research from the American Gaming Association paints a clearer picture of consumer behavior: 51% of sports bettors use only legal platforms, 34% mix legal and illegal options, and only 15% rely exclusively on illegal sources.¶ That 15% is where the problem lies — and that’s the group that good policy should be focused on bringing into the legal fold. But when states limit access to legal, easy-to-use platforms, and raise the cost of doing business so high that legal services become uncompetitive, they unintentionally push more people toward shady alternatives.¶ Contrast this with the more open, competitive frameworks in states like Nevada, Iowa, Wyoming, Kansas, and West Virginia. Nevada may be the gold standard with its full 55/55 score in regulatory rankings, but smaller states are also showing how smart policy can foster a thriving legal market while minimizing illegal activity.¶ The national trend is promising: The number of states where sports betting is illegal has fallen from 15 in 2022 to just 11 today. And that number will likely shrink further, with states like Hawaii, Minnesota, and Texas currently considering legislation to legalize sports betting. These states should take care not to repeat the mistakes of jurisdictions that treat betting as a vice to be controlled rather than a consumer activity to be regulated.¶ The key lesson here is simple: Prohibition and overregulation don’t eliminate demand — they just drive it underground. If policymakers are serious about curbing the black market, protecting consumers, and generating public revenue, they must embrace competitive, legal sports betting markets that are accessible, fairly taxed, and digitally enabled.¶ States that have done so are already reaping the benefits. Those that haven’t — like Montana — remain cautionary tales of how too much control can lead to chaos.¶ Let the legal market work. It’s not just good economics — it’s good policy.

Mitigates - State efforts are cutting problem gambling nationwide.

Huble 25 [Cait Huble, "National Council on Problem Gambling Survey Shows Drop in Problem Gambling Risk, Highlights Ongoing Challenges", July 17, 2025, National Council on Problem Gambling, https://www.ncpgambling.org/news/national-council-on-problem-gambling-survey-shows-drop-in-problem-gambling-risk-highlights-ongoing-challenges/, Accessed January 26, 2026] //SK

“This new research shows that the nationwide efforts in responsible gambling and public awareness are making a positive impact, but the work is far from over,” said Derek Longmeier, NCPG Board of Directors President. “We must build on this momentum by embedding problem gambling into the broader public health infrastructure and investing in what we know works: collaboration across prevention, education, treatment, and research with the support of the government and communities.” The third installment of the National Survey on Gambling Attitudes and Gambling Experiences (NGAGE 3.0) shows that nearly 20 million American adults report experiencing at least one problematic gambling behavior “many times” in the past year. This represents a decrease from 27.5 million in 2021, but remains elevated compared to 2018 levels. While not all those represented in the study meet clinical standards for addiction, the data clearly show that too many Americans experience problematic behavior as a result of their gambling. Growing awareness of helplines like the National Problem Gambling Helpline™—a national resource that connects individuals to localized treatment—is an encouraging sign that education and outreach efforts are making an impact. While increased awareness doesn’t always translate into immediate action, it’s a critical first step in reducing stigma and expanding access to care. Key findings from NGAGE 3.0 include: High-risk behavior is concentrated among specific groups: ○ 28% of those who gambled on 10+ activities reported problematic behavior. ○ 35% of individuals who gambled on 3+ activities weekly or more often met the threshold for concern. ○ 24% of fantasy sports bettors and 17% of traditional sports bettors reported problematic behaviors. ○ 15% of adults ages 18–34 reported concerning behavior, compared to 2% of those 55+. ○ 10% of men—nearly double the rate of women—reported gambling-related problems. Online gambling participation rose significantly, from 15% in 2018 to 22% in 2024, and is closely associated with risk. Parlay betting nearly doubled, with 30% of sports bettors making parlay wagers in 2024, up from 17% in 2018—raising concerns about loss-chasing behaviors. Public understanding remains limited: Only 39% of Americans view gambling addiction as “very serious,” compared to 62% for drug addiction and 55% for alcoholism. Treatment skepticism is high among those who need it most: 37% of people engaging in risky play believe recovery is unlikely, more than twice the rate of the general gambling population. Sports betting participation has plateaued, holding steady at 23% of adults despite legalization in 38 states—suggesting that legal access does not necessarily expand the market but may intensify risk for active participants. While the survey shows signs of stabilization, it reinforces the urgent need for governmental action. At the federal level, NCPG is advocating for a share of the sports betting excise tax to be reinvested in state-level gambling addiction services, establishing a long-overdue, dedicated funding stream; and, in nearly all 50 states, NCPG and its affiliates continue to lead the charge for dedicating gambling tax revenues to gambling addiction prevention, treatment, and research. “All who profit from gambling, including the government, have an ethical imperative to use some of that money to mitigate gambling’s harms,” said Longmeier. “While many states have followed our advice, oftentimes that funding is directed to other addictions, leaving gambling addiction as an afterthought. Gambling addiction deserves to be treated by the states as the serious health crisis that it is.” NGAGE 3.0 is the most comprehensive national survey of gambling attitudes, behaviors, and experiences in the United States. Conducted by Ipsos in partnership with NCPG from January to March 2024, the study surveyed more than 3,000 U.S. adults using methodology consistent with prior waves in 2018 and 2021. Details on findings and methodology are available at NCPGsurvey.org.