“Except whatever they got addicted to before the legalization of online sports betting, it apparently led to much lower bankruptcy rates etc.”
Yes, Zvi gives evidence on bankruptcy rates. However, that is not the only kind of harm. Sports gambling doesn’t have direct health effects the way that drug or alcohol addictions do. Different types of addictions hit relationships, and sports gambling isn’t good for relationships, but it’s plausibly less harmful than a porn addiction. Sports gambling leaves people functional and able to hold down a job, again in a way that not all other addictions do. I don’t think you can assert that banning sports gambling will make people ‘much less harmed’. Not unless you’ve done a deep dive into all the different forms of harm caused by different types of addiction which they might get instead. If someone like Scott Alexander did that kind of analysis and announced that banning sports gambling is still worthwhile because people will addict themselves to cannabis or porn and that is net better, that would be different, but so far as I know, no one has tried to answer the question.
Separate point: you also can’t make the jump from ‘sports gambling is harmful’ to ‘we should ban sports gambling’. Banning things also causes harm. It moderately reduces takeup, but doesn’t eliminate the thing banned—illegal gambling is a problem everywhere people ban it, Prohibition didn’t eliminate alcohol, and the War on Drugs didn’t magically stop people taking them. So banning things causes a moderate reduction in usage of the thing, with an empirical question mark over how much. Banning things also means criminalising people who would otherwise not be criminalised, ruining their lives. It means devoting more societal resources to police and prisons, to enforce the ban, or else it means diverting existing law enforcement resources away from dealing with other crimes. Even if you accept both that sports gambling is harmful to users (more harmful than whatever other thing they’d get addicted to instead) and that banning it would somewhat reduce usage of gambling, you still can’t come to a firm conclusion that banning it is net beneficial to society.
On Zvi’s levels of legality, I’m OK with the idea of making sports gambling a 2, ie legal with modest frictions, but I really don’t believe that society can justify going to level 3 and criminalising it. And, again, the whole should-we-ban-it debate is a distraction that doesn’t help with the broader question of how society can treat people with addictive personality disorder.
Thanks for the comment, and I agree that it would be helpful if the debate on this topic could focus on the question of ‘how do we encourage people to take up a less harmful addiction’—like vaping vs smoking—rather than typically jumping to the question of ban / don’t ban.