Forecast Calls for 100% Chance of Shady Bets

Last week, media outlets reported that French authorities are investigating unexplained temperature spikes at a Paris weather station following suspicious bets placed on the platform Polymarket.

Federally regulated prediction markets like Polymarket and Kalshi exploit loopholes in state and federal laws to bring casino-style gambling to anyone with a smartphone. Whereas traditional gambling in Arkansas and elsewhere operates under state oversight and state law, prediction market platforms claim protection under federal commodities laws.

The out-of-state companies running these platforms claim it’s not gambling. They just offer “financial products” that let people “invest” in the outcome of sports games or other real-world events — like tomorrow’s weather, foreign policy, and so on.

But calling it an “investment” does not change the reality. It’s wagering on uncertain outcomes in hopes of making money.

A viral security camera video clip making the rounds online claims to show a man using a hairdryer on a thermometer at a French weather station. The video says the man was trying to win a Polymarket bet about the weather in Paris.

Newsweek reports the thermometer spiked four degrees Celsius over the course of about 12 minutes before abruptly dropping again. The incident and the Polymarket wagers placed right before it happened were suspicious enough to prompt investigations.

All of this reminds us about the corrupting influence that gambling has.

Even if the viral video of the man with the hairdryer turned out to be fake, the fact that platforms like Kalshi let users gamble on the weather makes people suspicious when temperatures do something unexpected. Imagine what happens when we have problems from people betting on elections.

We need to close the loopholes and enact clear laws that prohibit prediction market wagering and any activity functioning like it.

Articles appearing on this website are written with the aid of Family Council’s researchers and writers.

Arkansans Wagered $86.5M+ on Sports Betting in March

Arkansans wagered more than $86.5 million online in sports betting last month, according to reports from the Department of Finance and Administration.

Sportsbooks are now legal across most of the country, including Arkansas. Earlier this year the Arkansas Racing Commission approved sports betting license applications by FanDuel and DraftKings. State financial data shows that between the NCAA March Madness tournament and these new online sportsbooks, sports betting spiked by millions of dollars last month.

But this type of gambling is taking a terrible toll on families’ finances. Studies indicate people who gamble on sports may be twice as likely to suffer from gambling problems. When sports gambling happens online, the rate is even higher.

A study by Northwestern University found that for every dollar spent on sports betting, household investment falls by an average of $2. Researchers at UCLA estimate that online sportsbooks are linked to an increase of roughly 30,000 more bankruptcies per year nationwide.

Some online sportsbooks have actually produced advertisements that seem to promote compulsive gambling and other problem-gambling behavior.

In 2023, FanDuel released one commercial that showed people so focused on sports betting that they ignored everyone else around them.

Another ad promoted taking advantage of every opportunity to gamble.

In 2024, FanDuel aired commercials encouraging people to gamble on “surprising” hunches — including powerful hunches that strike between football plays.

More recent commercials advertise “playoff mode” with promotional offers such as $300 in “bonus bets.”

Gamblers who ignore loved ones, wager nonstop, or place bets “on a hunch” quite possibly suffer from gambling addiction, and high-end promotional offers may appeal to people who struggle with gambling problems.

Sports betting is out of control. It’s corrupting sports, and it’s ruining lives. The NFL and sportsbooks have actually faced lawsuits over the harm from gambling addiction and in-game micro-bets.

As powerful corporations try to make gambling part of everyday life, it’s important for Arkansas to protect its citizens and families from predatory gambling. Otherwise gambling addiction will simply continue wrecking lives and hurting families in our state.

Articles appearing on this website are written with the aid of Family Council’s researchers and writers.

Federal Reserve Bank Report Shows Sports Betting Hurts Consumer Credit

A new report from the Federal Reserve Bank of New York shows consumer credit health is suffering in the wake of sports betting’s legalization.

Sportsbooks are now legal across most of the country, and financial data shows last year Arkansans wagered an average of nearly $1.8 million every day placing sports bets. But this type of gambling is taking a terrible toll on families’ finances.

A new report from the Federal Reserve Bank of New York found legalization of sports betting leads to a tenfold increase in spending at online sportsbooks. Researchers also found an increase in credit delinquencies and a decline in credit scores after legalization.

This is just the latest report showing the financial harm that sports betting causes.

Research now shows that the legalization of sports betting may be linked to serious financial problems like credit card debt, overdrafts, late payments on loans, lower credit scores, and higher bankruptcy rates.

A UCLA study found that states with online sportsbooks saw credit scores decline three times as much as states with only physical betting locations.

One writer at The Atlantic described sports betting’s impact as “a wave of financial and familial misery” for households that are least able to afford it.

Besides the financial impact, studies have also linked legal sports betting to increases in binge drinking, mental harm, and even violent crime.

Sports betting is out of control. It’s corrupting sports, and it’s ruining lives.

Tax revenue from gambling has not improved Arkansas’ roads or boosted the economy. As powerful corporations try to make gambling part of everyday life, it’s important for Arkansas to protect its citizens and families from predatory gambling.

Otherwise gambling addiction will simply continue wrecking lives and hurting families in our state.

Articles appearing on this website are written with the aid of Family Council’s researchers and writers.