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During Problem Gambling Awareness Month, there has been a heightened focus on educating younger demographics about the risks linked to gambling.
Gambling literacy, a subject extensively discussed at an industry seminar in Novi this month, stands out as one of the major concerns related to the issue.
Recent studies have revealed that young adult males exhibit the lowest levels of gambling literacy, particularly when it comes to sports betting. This is particularly concerning in Michigan, where online sports betting remains readily accessible 24/7.
A lawmaker from Monroe is leading the charge to enhance the awareness of gambling among the youth in Michigan. However, what exactly is gambling literacy, and why does it pose a more significant concern for younger individuals involved in gambling?
What is gambling literacy?
The term “gambling literacy” is utilized in studies on responsible gaming.
Gambling literacy examines a player’s comprehension of the bets they place, focusing on their understanding of the odds and the probability of winning.
The creation of the Positive Play Scale in 2017 aimed to measure the level at which consumers hold positive beliefs about gambling and engage in a positive approach towards gambling activities.
In order to measure the extent of gambling literacy, a Gambling Literacy Subscale was developed as part of the larger scale. This subscale comprises three statements, aimed at assessing the degree of agreement or disagreement among surveyed gamblers. The statements are as follows:
- Making money through gambling is not a recommended approach.
- After losing, my chances of winning improve.
- Increasing the frequency of my gambling endeavors will enhance my chances of winning more than I lose.
A player’s level of gambling literacy is subsequently assessed based on how they react to these statements.
Sports bettors score lowest with gambling literacy
The National Council on Problem Gambling unveiled the National Survey on Gambling Attitudes and Gambling Experiences 1.0 in 2021.
The study surveyed over 28,000 US consumers, making it the initial comprehensive national examination of gambling issues and public opinions on gambling subsequent to the US Supreme Court’s decision to legalize sports gambling in May 2018.
One of the main findings of the study indicated that sports bettors had significantly lower levels of gambling literacy compared to individuals who did not engage in sports betting.
In the survey, it was found that close to 50% of the sports bettors had the perception that their chances of winning improved following a loss. Additionally, an equal proportion of respondents believed that increasing the frequency of their gambling endeavors would result in more wins than losses.
Compared to non-sports bettors, over 40% of sports bettors hold the belief that gambling is a lucrative means of making money.
Young adults show lowest rates of gambling literacy
According to the 2021 NGAGE report, individuals between the ages of 18-44 exhibit the least amount of gambling literacy.
Only 27% of 18-24 year olds strongly agreed that gambling is not a good way to make money, when asked the baseline question.
The percentage rose to 36% for individuals aged 25-34 and reached 48% for those in the 35-44 age category.
In contrast, the statement was strongly disagreed with by 80% of adults aged 75 years or older.
Poor literacy was demonstrated by almost 27% of individuals aged 18-24 when considering all three gambling literacy assessment statements.
Just 36.4% demonstrated a strong understanding of gambling.
Gambling literacy does not reach an acceptable level until individuals are over the age of 44, at which point it reaches 73%. However, both the 25-34 age group (49.6%) and the 35-44 age group (59.8%) still fall significantly below the level of their older counterparts.
Why young adults struggle with gambling literacy
With the recent expansion of legalized online betting, sports betting has witnessed a surge in popularity around college campuses. Notably, universities such as Michigan State University have even formed partnerships with online sportsbooks like Caesars Sportsbook.
According to research, approximately 75% of college students engaged in gambling activities, whether legally or illegally, in the previous year.
Social media presence
College students are finding it increasingly challenging to escape the daily presence of online sportsbooks, as they maintain a strong presence on various social media platforms.
Earlier this month, Mike Ruffing, the Founder of Maverick LLC, presented at Michigan’s 15th Annual Problem Gambling Symposium in Novi. Maverick LLC is a firm that offers strategic consultation and proactive education to prevent issues related to sports betting.
Ruffing explained that a significant number of college campuses have fostered an environment that embraces sports betting, which is evident in the 75% statistic. He highlighted the reasons why college students are vulnerable to this trend, mentioning social media as a contributing factor. He stated that operators and other entities associated with the industry actively utilize social media as a platform to constantly produce content, thereby glorifying or normalizing sports betting.
Celebrity promotion of risky betting
Celebrity partnerships have been established by various online sportsbooks for their offerings.
Dave Portnoy, the founder of Barstool Sportsbook, has frequently promoted game-day parlays with high odds. Similarly, FanDuel has partnered with Pat McAfee to endorse preset parlays, and DraftKings has enlisted sports media pundits Dan Le Batard and Mike Golic Jr. to do the same.
These influential media figures are closely linked to the college demographic.
According to Ruffing, college students could potentially be swayed by these individuals, with some even taking it to the extent of advocating for high-risk sports betting tactics or fully embracing the concept of reckless gambling.
Parlay betting
Online sports betting has witnessed a surge in popularity, largely due to the widespread adoption of the parlay bet.
By piling up bets one after another, the odds increase significantly, potentially resulting in a substantial payout for the bettor.
Parlay wagers have proven to be a significant source of success for FanDuel Sportsbook, greatly benefiting the company.
FanDuel’s revenue in Illinois for April 2022 amounted to $34.2 million, with parlay betting contributing 70% ($23.3 million) of that total. In January 2025, parlay wagering accounted for 62% ($28.9 million) of the company’s revenue.
In January, FanDuel’s hold from parlay betting in Illinois was 21.5%, which was significantly higher compared to straight bets.
Ruffing noted that the parlay bet is being aggressively promoted, which many consider to be the holy grail of sports betting. The betting scenario involves high odds, requiring multiple outcomes to occur. Consequently, there is a surge in aggressive marketing, fueled by the lucrative revenues observed in Illinois.
FanDuel Michigan shows similar success
Michigan’s monthly revenue reports do not provide a breakdown of sports betting wagers by type. Nonetheless, FanDuel stands out among its competitors in the state with a higher hold, indicating its potential success in parlay betting.
FanDuel’s online sportsbook recorded an impressive 11.9% hold in 2022, surpassing the collective hold of all statewide online sportsbooks, which stood at 8.8%. This outstanding performance allowed FanDuel to secure a significant 40.9% share of the statewide online revenue, amounting to an impressive $163.5 million. It’s worth noting that despite holding just 30.3% of the online handle share, FanDuel managed to dominate the revenue share in the online sports betting market.
The trend has persisted throughout 2025.
In January, FanDuel’s online hold was 13.3%, surpassing the state’s hold of 7.1%. FanDuel contributed to 59% of the total statewide online revenue, amounting to $19.9 million, yet it only represented 32% of the handle.
In February, FanDuel achieved an 11.3% hold, surpassing the statewide hold of 6.6%. FanDuel dominated the online revenue in the state, capturing 61% at $13.9 million, despite having only 36% of the online handle.
Michigan lawmakers, MGCB pushing RG education in schools
A bill mandating the inclusion of responsible gambling in school curricula was proposed by Senator Joseph N. Bellino Jr. (R-Monroe) last month.
By July 1, 2025, the state Department of Education is required to create a suitable instructional program on gambling addiction for various age groups and grade levels, as outlined in Senate Bill 54. This program will be accessible to both school districts and public school academies.
Bellino stated in a press release that due to the rise of mobile betting apps and the legalization of online sports betting in more than 30 states, teenagers are facing challenges related to gambling addiction. According to reports, a significant number of young individuals fail to perceive gambling as a risky activity, resulting in a gambling problem rate among high school students that is twice as high as that among adults. Bellino’s proposed legislation has garnered support from both sides of the aisle and aims to proactively address this escalating issue by educating students about the genuine hazards associated with gambling.
Adding to the traditional trio of reading, writing, and arithmetic, the Michigan Gaming Control Board has fervently supported the inclusion of responsible gambling as the fourth “R” in education.
In order to enhance responsible gaming initiatives, the MGCB successfully obtained supplementary funding for the fiscal year 2025. This financial boost facilitated the expansion of resources and the recruitment of additional staff members dedicated to RG efforts.
If you or someone you are acquainted with is seeking assistance for a gambling-related concern, please reach out to the Michigan Department of Health and Human Services Problem Gambling Helpline at 1-800-270-7117.
