Andrew Yang Likens Sports Betting to the Lottery Being a Tax on the Poor

• Gambling News
• 26 November 2024

Andrew Yang, a Democratic presidential candidate in 2020 known for advocating a monthly basic income of $1K for every US citizen, thinks that the liberalization of sports betting has had a detrimental effect on society. 

Yang, a businessman, lawyer, lobbyist, and political analyst believes that the continuous growth of legal sports betting nationwide, facilitated by a historic US Supreme Court decision in May 2018, has had negative effects. 

Yang claims that the impact has been especially harsh for those who cannot afford to suffer losses. Yang compares sportsbooks to a modern version of the lottery, claiming they take advantage of the impoverished.

"You know what’s become another ‘tax’ on Americans? Online sports betting,” Yang said on X.

Confronted with resistance from his 1.7 million X followers, Yang made it clear that he has taken part in the legal sports betting industry.

"Guys, I gamble on sports on one of the apps. It’s a time suck and totally changes your viewing experience — and not for the better,” Yang continued. “It’s incredibly easy to imagine people betting money that they can ill afford.”

Yang doesn't oppose gambling; in fact, he has backed legal online poker. A native of New York, Yang also advocates for introducing full-scale casinos in New York City. 

Tax on the Underprivileged? 

Lotteries are frequently characterized as a regressive tax that disproportionately affects low-income individuals, who bear the majority of the tax burden. 

In April, The Economist noted that individuals with lower incomes spend significantly more on lottery games compared to those with higher incomes. Following an analysis of state lottery reports and a comparison with data from the US Census Bureau, researchers at The Economist discovered that in the lowest 1% of zip codes, the typical American adult spends about $600 annually, which is nearly 5% of their income, on lottery tickets. 

“In other words, the poorest households spend roughly 30 times more on lotteries than richer ones, as a share of income. The pandemic appears to have made things worse. In 2021 the poorest 1% of households — flush with stimulus cheques — spent $100 more on lotteries than they did in 2019. The richest 1% spent just $10 more,” the report relayed.

Last year, Americans spent over $100 billion on state-operated lottery games, ranking the US lottery sector as the ninth most lucrative company in the nation if it were considered one organization. 

While most of the nearly 40 states where sports betting is legal don’t handle the wagering themselves or operate as the house, these states are benefiting financially from permitting the broadened gambling activity. Following the landmark SCOTUS decision, state tax income from sports betting has increased to over $6.8 billion. 

Yang Movement 

Yang launched a vigorous campaign in 2020 to obtain the Democratic Party’s nomination for president. 

Among the major political endorsements he received that year were Elon Musk, Jack Dorsey, who was the CEO of Twitter at the time, and Sam Altman, Chair of OpenAI. Endorsements from Vegas associated with Yang featured the late Zappos CEO Tony Hsieh, poker legend Daniel Negreanu, and illusionist Penn Jillette. 

Yang qualified for and took part in the initial seven Democratic primary debates before halting his campaign in February 2020. Yang’s chances of succeeding in the 2028 election are approximately 125/1.