Gambling in the United States has grown significantly in recent years. In 2025, American casinos and sportsbooks earned $79 billion, a nearly 20% increase from $66.5 billion in 2023. Prediction market companies, which help forecast future events like elections or sports outcomes, have also become a major revenue source. These platforms are not technically classified as gambling, but they operate similarly by allowing people to bet on the likelihood of events happening. The rise in gambling has led to several high-profile scandals, including allegations that the chief of police in New Haven, Connecticut, used public funds to place nearly $4.5 million in sports bets. Similarly, some prominent basketball players have been accused of betting on their own games. Even politicians are engaging in betting, placing wagers on the outcomes of elections. The surge in gambling can be partly attributed to a landmark Supreme Court decision in Murphy v. National Collegiate Athletic Association, which allowed individual states to legalize sports betting. This ruling led to a rapid expansion of legal gambling across the country. Prediction markets, such as those operated by companies like Kalshi and Polymarket, have grown in popularity because they are regulated at the federal level by the Commodity Futures Trading Commission, rather than by individual states. This means they are not subject to state-specific rules, such as age restrictions or requirements for in-person betting, which has allowed them to operate more freely than traditional gambling platforms. Despite its economic benefits, gambling is associated with several serious issues. One is the risk of addiction, which can lead to severe financial and personal consequences. The World Health Organization estimates that about 1.2% of the global population has a gambling problem, while in the U.S., around 20 million people are considered problem gamblers. Another concern is insider trading, where individuals use confidential or illegal information to gain an advantage in betting. For example, a U.S. Army Special Forces soldier was arrested for using classified information to bet on the arrest of a foreign leader. Additionally, large bettors, known as "whales," can influence outcomes by affecting the odds of events, as seen in the case of a French gambler who placed a massive bet on Donald Trump winning the 2024 presidential election. Despite these challenges, gambling is unlikely to be banned or heavily restricted due to its economic impact. The industry supports thousands of jobs, with employment in online gambling peaking at nearly 70,000 in 2007 and reaching 67,000 in 2024. The industry also generates significant tax revenue for states, making it politically difficult to impose restrictions. However, economist Jay L. Zagorsky has proposed a potential solution to reduce gambling-related harm: requiring gamblers to use cash instead of digital payments when placing bets or funding accounts. This would create a barrier to impulsive gambling and make transactions more visible to others. While this could benefit businesses like convenience stores, it may face resistance from gambling companies that rely on digital transactions for efficiency and customer convenience.