Perhaps the most valuable lesson to come from economic theory is the concept of opportunity cost. For the individual, it represents the potential benefits one misses out on by choosing one option over another, asking them to consider what could have been achieved or gained if a different choice had been made. In doing so, it also shows what can be lost. As a very basic example for someone who chooses to buy a new car, the opportunity cost is the money they could have used to invest in education, travel, or to buy other goods and services that may improve their quality of life.
While it has various applications in both business and day-to-day life, the concept can be directly applied to someone with a gambling habit, namely sports betting. America is in the throes of a problematic sports betting crisis, particularly among adult males aged 18-35, although female counterparts are catching up. Aside from providing entertainment, there is little to be gained from sports betting because over time, the Gambler’s Ruin formula stipulates that a net loss is a near certainty. Of further note, is the average problem gambler debt which lands in a startling range of $55,000 and $90,000 per person. While the financial bottom line of gambling behavior should speak for itself, it often doesn’t. Consequently, it helps to better understand the opportunity cost of gambling for someone who struggles to maintain a healthy relationship with the activity. An entire generation is at a crossroads, and any anything that can be done to encourage investment in wellbeing over an activity that can compromise the future should be considered mission-critical. If you suspect that sports betting is taxing more from your life than what’s wagered on a given game or event, consider the following.
5 Opportunity Costs of Gambling for Those Who Have a Problematic Relationship with Sports Betting
I. Furthering Education
The average cost of postsecondary education in the U.S. varies significantly depending on the type of institution, but for public four-year universities, the annual cost is more than $11,600 for in-state students and over $30,700 for out-of-state students, while the average cost of trade school in the U.S. is around $15,000 per year. This is something that sports bettors who are considering furthering their education need to think carefully about, as research confirms that in addition to the massive debt load referenced in the introduction of this article, 1 in 5 sports bettors spend 25% of their income wagering on games and events.
II. Growing a Career
Several factors can prevent professionals from being promoted and furthering their respective careers. Common barriers include inadequate preparation, lack of training, and general underperformance. At minimum, habitual sports betting does nothing to support preparation, training, and performance. On the flip side, gambling behavior can directly result in each of the following:
- Reduced productivity – Sports betting, or thinking about sports betting, at work leads to distraction from responsibilities and compromises one’s ability to work efficiently and effectively.
- Increased absence – Problem gamblers are likely to take extended breaks during the working day, or even full days of absence, to focus on sports betting activities.
- Risk of theft and fraud – As discussed above, problem gambling can have a harmful effect on a sports bettor’s financial situation. Excessive debt can tempt someone to steal or fraudulently obtain company assets to support their gambling habit.
If you desire to further your professional career, focus on anything that supports preparation, training, and performance, while removing the distraction of sports betting from your life.
III. Starting a Business
The average cost of starting a small business in the U.S. varies significantly depending on the type of industry, and whether or not the business is strictly online or requires a brick-and-mortar, along with a variety of other factors. All in all, experts suggest that the average cost to start a small business in its first year is around $40,000. Sports bettors aspiring for entrepreneurship need to think carefully about this, considering the $55,000 and $90,000 average debt load (for problem gamblers) and average 25% income expenditure on sports betting.
IV. Health and Wellness
The average annual cost of eating healthy in America varies, but experts indicate that a family of four could expect to pay between $12,000 and $14,400 per year, or between $3,000 and 3,600 per person. This excludes investment in natural health supplements to attain vital vitamins, minerals, and other nutrients along with investment in fitness (gym memberships, et cetera) needed to optimize physical health and wellness. Concurrently, a minimum recommended average annual cost of mental health counseling is $2,340 per year (based on one $195 session per month) for individuals, though this can increase significantly for certain conditions such as depression or problem gambling.
V. Family
Research shows that the average American spends about 6-hours and 17-minutes of quality time with their family each week. That’s right, only about 6-hours in an entire week. What does that look like for the habitual sports bettor who spends up to 6 hours per day engaged in the activity?
The minutes, hours, days, weeks, and months spent analyzing point spreads, parlays, and prop bets in lieu of time with loved ones is irrevocable. A problem gambler who is a parent will never get those moments back with their children. Whether first-steps, school recitals, bedtime readings, or the simple act of holding their hand on a whimsical walk to the store together, there is no scenario where perceived gambling gains outweigh the priceless time with them. The same is true for anyone with aging or ailing kin, or in a loving relationship that could blossom into something enduring if only afforded the time and effort required to nurture it.
Yes, there is a small relative investment required to put an end to problematic sports betting behavior, although a vast majority are covered by their insurance (find out here). But whatever that value may be, the above summary of opportunity costs of gambling clearly show that the dividends exponentially exceed what sports betting provides in return. Do you struggle to quit or take a break from sports betting? Start focusing on what’s important by reaching out via your preferred form of contact below.
Get Help for Problem Gambling Today
CALL +1 (877) 426-4258
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Email help@kindbridge.com
