"We’re Building a Pool of Future Gambling Addicts" - Michael Lewis on the Hidden Costs of Legal Sports Betting
How a $100B Industry is Turning Young Men into Gambling Addicts
Michael Lewis, a masterful storyteller and chronicler of the world’s unexpected players, joins the podcast to dig deep into some of the most urgent societal issues of our time. From dissecting the meteoric rise of sports gambling in the U.S. to offering an insider’s perspective on the downfall of FTX, Lewis brings his trademark clarity and wit to complex subjects. Known for bestselling works like The Big Short, Moneyball, and The Blindside, Lewis has turned his gaze to the ripple effects of legalized sports betting in his podcast Against the Rules. His latest explorations raise critical questions about addiction, societal values, and the consequences of unchecked industries.
In this conversation, Lewis reflects on the public health crises linked to gambling, the hidden risks of dopamine-driven economies, and his own unexpected journey documenting Sam Bankman-Fried. He also shares wisdom on creativity, focus, and “arbitraging your personality against the world,” offering advice to anyone looking to chart their own unconventional path.
The Lowdown
The legalization of sports betting in 39 U.S. states has made gambling a $100 billion industry, but the societal costs are mounting.
Young men are particularly vulnerable to gambling addiction, with troubling studies showing a staggering 26% risk of developing a gambling problem when exposed.
Michael Lewis proposes an unconventional solution: shame. Making it socially unacceptable to boast about successful gambling accounts might curb some of the harm.
On FTX: Lewis defends his portrayal of Sam Bankman-Fried, arguing the real story lies in SBF’s reckless risk-taking rather than outright malice.
Advice for aspiring storytellers: chase interests no one else is paying attention to.
"We’re Building a Pool of Future Gambling Addicts"
Legalized sports gambling has skyrocketed, with nearly two-thirds of Americans now able to place bets from their phones. But the cracks are showing. Bankruptcy rates in states with legalized gambling are up 20-30%, and studies predict increases in savings deficits and even suicide rates.
Lewis warns that companies like FanDuel and DraftKings target young men, a group already at high risk of addiction. Over 60% of male college students now engage in sports gambling, creating what Lewis describes as "a public health crisis in the making."
"It’s like your whole life is in the casino now." – Michael Lewis
"The Dopa Monsters Are Here"
Lewis critiques how modern industries, from gambling to social media, weaponize dopamine to hook users. He warns that these “on-demand dopamine hits” are rewiring brains, particularly among young people, and fostering addictive behaviors.
Sports used to teach discipline and delayed gratification, but now they often serve as vehicles for instant gratification. Gambling apps amplify the problem by making reckless betting behavior easy and enticing.
"We’ve turned a mechanism that taught patience into one that teaches destruction." – Michael Lewis
"Sam Bankman-Fried Didn’t Start as a Villain"
In his book Going Infinite, Lewis sheds light on the collapse of FTX, portraying SBF not as a calculated criminal but as someone who made catastrophically reckless decisions. The company’s fatal move came when Bankman-Fried used customer funds to plug a billion-dollar hole—a classic case of fraud but not premeditated theft.
Critics argue the response to SBF, including his 25-year sentence, is harsh compared to similar financial scandals like MF Global. Lewis notes that Bankman-Fried’s public apology tour likely worsened public sentiment.
"His flaw wasn’t malevolence; it was reckless risk-taking and overconfidence." – Michael Lewis
"Focus Where No One Else Is Looking"
Lewis offers advice for those inspired by his career: pursue what genuinely fascinates you, especially the overlooked or underappreciated. Great opportunities often lie in areas others ignore.
He reflects on his own journey, emphasizing the importance of individuality:
Writing was his calling, even when no one encouraged it.
Ignore societal norms and focus on your unique passions.
"If everyone else is paying attention to it, it doesn’t need you. Go where your passion is, even if it feels lonely." – Michael Lewis
Quickfire
Q: What advice would you give your younger self?Don’t try to emulate anyone else. Focus on becoming the best version of yourself by following your genuine interests.
Q: What’s the best way to succeed in storytelling?Find the stories no one else is telling. Passion for your subject will shine through, even in a crowded market.
Michael Lewis continues to show us the stories hidden in plain sight, from billion-dollar bets to the quiet struggles shaping our society. Through sharp insights and sharp turns, he reminds us of the power of curiosity—and the cost of ignoring its warnings.
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