Professional punters are cheating bookmakers by imitating problem gamblers

The industry has grown significantly since the U.S. Supreme Court overturned the federal ban on sports betting in 2018. Currently, 30 states and the District of Columbia have legalized online betting. However, experts warn that this growth is negatively affecting some punters. A study by researchers at Southern Methodist University, the University of Maryland, and the University of California, San Diego analyzed anonymous banking data from gamblers and found that a small but growing proportion of punters spend more than 10 percent of their monthly income on gambling. The trend is especially prevalent among low-income people, raising concerns about the impact of such behavior on their financial and social lives.

Professional punters, also known as “sharps,” develop ways to appear like regular or even addicted gamblers to avoid attention and keep their accounts open. Rafus Peabody, who makes money from betting, noted that some “sharps” make bets that resemble the actions of average punters in order to maintain or increase their betting limits. There are even reports of “sharps” creating systems to log into their accounts in the morning, mimicking addicted gamblers. This trick benefits professional punters, but it also highlights a serious problem with how online bookmakers treat their most vulnerable customers.

While the gambling industry claims to care about responsible gambling, new research paints a different picture. A joint study by UCLA and the University of Southern California found that states that have legalized online betting have seen an increase in bankruptcies and worsening credit scores. The study shows that sports betting has an impact on the finances of not only the punters themselves, but also the broader population in those states. The groups most affected face serious financial problems.

Most people bet without much risk, but bookmakers make significant profits from a small group of problem gamblers. Research shows that about 3% of punters account for nearly half of bookmakers’ revenue, leading some to call for stricter regulations in states considering legalizing online casinos.

These games tend to entice people into gambling even more. Although some U.S. lawmakers, such as Congressman Paul Tonko and Senator Richard Blumenthal, have spoken out against the idea and introduced bills to regulate the industry, major changes at the federal level are unlikely. Experts say that implementing additional security measures, such as banning online casinos and more thorough background checks on players, could help reduce the growing risks of legal online betting.