“What is the difference between a problem gambler and a profitable customer at a sports book? I would argue that there is not one. … Something like 5% of sports bettors are responsible for more than 80% of all of the profit and revenue that sportsbooks generate. … This is called the addiction surplus. … Some researchers have argued that this leads vice industries to tamp down on consumer protections because on a gambling site, their revenues are tied one-to-one to consumer losses. So everything they do to protect consumers literally cuts into the bottom line.”
Better Offline · Tech Strategy & Big Tech · November 2026
Context
The host had described a report in which a reporter posing as a problem gambler was quickly assigned a personal sales rep at a sportsbook. Devor answers with research on how few customers produce most of the profit, and why that gives gambling companies a built-in conflict over protecting customers.
Transcript
fight the sweat. Live in it. Because you are an
underdog. Underdog. Unleash your dog. Terms may apply.
Well, the thing is about like on the pointing of like whether this is, I guess, the big question has been whether prediction markets are investing or not. And, you know, should they sit along alongside, you know, your 401ks, your, you know, ETF stocks. Is that what people are
suggesting? Is that being put on the table?
Well, if you open Robinhood right now, like, you can liquidate your stock position and go put it all on football with prediction marketing. Yes, you can. Like in the same map. You can't.
Is there a prediction market ETF, though, which is just a fund of different options that you could buy into? Usually it's like stocks or bonds.
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