Congress Hears Student Betting Concerns; DraftKings Pushes Back

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Lawmakers on Capitol Hill examined the rise of sports betting on college campuses Wednesday, with experts warning that betting apps and fast, AI-driven gambling features are contributing to problem gambling among students, according to FOX 5 DC.

Lawmakers questioned what can be done to rein in students who are gambling at higher rates. DraftKings pushed back on claims that it uses AI to target problem gamblers.

What the student surveys found

Sports betting is legal in 39 states. Before the Supreme Court’s landmark decision, Americans were wagering about $5 billion a year through regulated sportsbooks. In 2025, Americans wagered $167 billion, a nearly 3,000% spike in less than a decade, according to the report.

A recent survey found that 67% of students have bet on sports. Nearly 16% showed problem gambling behaviors such as chasing losses or spending more money than they planned, and nearly 6% reported losing more than $500 in a single day.

Rep. Michael Baumgartner said a survey found that 1 in 5 students have used financial aid to place bets.

"Young people today are gambling online, offline, legally, illegally, domestically and offshore," said Dr. Lindsey Mortenson, chief mental health officer at the University of Michigan.

Mortenson also pointed to speed. "The faster you can gamble, the faster small problems become big ones, and this combination of fast gambling and few guardrails is why we are on pace to create the largest generation of problem gamblers in U.S. history," she said.

AI claims, DraftKings and proposed bills

University of Maryland professor Paul Sacco said gambling apps use powerful AI algorithms to lure people, especially young adults, into gambling more.

"The worst-case scenarios are really bad, and unlike alcohol and drug use, gambling is not self-limiting, so there’s definitely many stories of people gambling their own wealth away, and then the wealth of their loved ones," Sacco said.

Several bipartisan bills in Congress aim to help regulate student gambling and debt. Rep. Ro Khanna called for an outright congressional ban on prediction markets.

PlayNJ reported Oct. 31 that Congress was weighing prediction market bans and state oversight. In June, PlayNJ reported that the New Jersey Senate advanced multi-state gambling self-exclusion legislation.

Gambling problem? Call 1-800-GAMBLER.

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Source: As reported by FOX 5 DC.

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