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Betting on Sports Gambling

12/28/2018

84 Comments

 
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by David Hagenbuch, founder of Mindful Marketing & author of Honorable Influence

What skills did your parents teach you when you were growing up?  Maybe they showed you how to throw a baseball, ride a bike, or drive a car.  If Buffalo Wild Wings launches a major initiative it’s considering, moms and dads might start teaching their kids a whole new set of skills, like how to place bets on teams that will cover spreads in big games.
 
On May 14, 2018, the U.S. Supreme Court struck down a 1992 federal law that largely outlawed sports betting, thereby giving states authority over such gambling.  Several states, like Delaware and New Jersey, quickly legalized sports betting, and many others are poised to follow suit.  It’s hard to imagine policymakers resisting the revenue potential sports gambling represents, which is the same reason Buffalo Wild Wings is considering adding gambling to its menu.
 
There’s certainly nothing wrong with businesses, including those in the highly-competitive restaurant space, looking for other sources of sales.  Furthermore, some restaurants, like Dave and Buster’s, have become successful by marketing experiences alongside entrées.  But, is playing arcade games the same as putting down money on NFL games?

Leisure is in many ways a personal preference.  Everyone needs to relax and refresh at times, in ways that work for them, so who’s to say someone is wrong to spend his/her free time and money reading books, riding bikes, watching movies, or wagering on the outcomes of soccer games?  If done in excess, most leisure activities could potentially be harmful, but gambling appears to carry a unique set of risks for the gambler and others:
  • Financial Risks:  Problem gamblers can easily fall into a downward spiral of debt, leading them to max out credit cards, fail to make mortgage payments, or even declare bankruptcy.
  • Relationship Risks:  Compulsive gambling can lead to neglect of children, fights with spouses, and divorce.
  • Health Risks: Problem gamblers often suffer from stress, anxiety, low self-esteem, and depression, as well as related physical symptoms such as insomnia, high blood pressure, migraines, and heart disease.  Such individuals also are likely to use alcohol and drugs as coping mechanisms, or even commit suicide.
  • Job Risks:  Individuals with gambling problems are frequently absent from work and less productive when they are on the job, often because of their misuse of company time.
 
While most leisure activities tend not to become obsessions, gambling addiction is very real.  Studies have shown that those addicted to gambling exhibit many of the same behavioral and neurological symptoms that drug addicts experience.  What’s more, bookstores and bicycle shops don’t need to run disclaimers in their ads, “Have a reading addiction?” or “Biking problem?  Call . . .”, but casinos put disclaimers like this one on their websites: “Gambling Problem? Call 1-800-GAMBLER for help.”
 
The following statistics from Addiction Tips help put problem gambling into even clearer perspective:
  • Around 80 percent of the American population gambles in a given year.
  • About five out of 100 gamblers have a gambling addiction.
  • Of those age 14-21, 750,000 are addicted to gambling.
  • Most of those addicted to gambling are between the ages of 20 and 30.
  • Over 6% of students in U.S. colleges gamble regularly.
  • Gambling addiction is positively correlated with criminal activity, including violent crimes.

Gambling is a widespread and risky activity; however, the National Council on Problem Gambling acknowledges that “most adults who choose to gamble are able to do responsibly.”  With the legalization of sports betting, gambling activity is likely to explode, so why shouldn’t Buffalo Wild Wings add sports gambling to its menu?  That’s the question longtime ESPN host Mike Greenberg asked during an August 18, 2018 broadcast of his daily sports talk program Get Up!:
 
 “This doesn’t seem that complicated, unless I’m missing something . . . It seems like a lot more people will come [to Buffalo Wild Wings, if it adds gambling].  I don’t see any reason not to and I see every reason to . . . I am one who is in favor of gambling in a significant way, so I don’t see any downside to this.  Tell me what I’m missing if there is something.”
 
Here are some things that Greenberg may be overlooking about sports, gambling, and Buffalo Wild Wings:
 
  • Sports are extremely widespread:  There are over 440 internationally recognized sports and more than 8,000 indigenous sports, not necessarily recognized internationally. That pervasiveness means a virtually endless stream of easily-found betting opportunities.
  • Sports inspire passion among a very wide range of people:  Few things stir as much interest and excitement as sports, or enjoy such broad demographic appeal: men and women from toddlers to senior citizens love sports.  The 2018 Super Bowl drew over 103 million viewers in the U.S. alone, which provides some specific support of that extensive popularity. 
  • Gambling can be destructive and addictive: Several paragraphs above have already detailed many risks associated with gambling as well as its potential for addiction.
  • Buffalo Wild Wings is really big:  It’s the largest sports bar chain and the 17th largest restaurant chain in the U.S.  In 2017, it had sales of over $3.9 billion across 1,206 stores, which means Buffalo Wild Wings could expand sports betting across the country about as fast as any company  could.
  • Buffalo Wild Wings targets families:  The firm’s website suggests “Wednesday is for Family,” while promoting $2.99 kids’ meals from 4:00 pm - 8:00 pm from its seven-item, customizable kids’ menu.  Customers also perceive the restaurant as family-friendly, posting online comments like “Yes, this place [is] definitely suited [for] families,” “Fun sports environment with fun bar atmosphere and family restaurant at the same time,” and “an awesome family friendly restaurant.”
  • Buffalo Wild Wings targets college students:  The chain currently offers special promotions with 16 different universities, including the University of Alabama where football fans can get a free order of snack-size wings if Alabama records three or more sacks in a game.  A Google search of “Buffalo Wild Wings student discount” returns numerous hits of other college and universities that have negotiated special student discounts, such as one giving students at Northern Michigan University 10% off food items on Thursdays.  Also, the website Student Discount Program calls Buffalo Wild Wings “the ultimate place to get together with your friends, watch sports, drink beer and eat wings.”
 
Certainly, there are many people who gamble without causing serious harm to themselves or others.  Unfortunately, there also are 5 -7 million Americans, according to the National Council on Problem Gambling, who meet one or more of the diagnostic criteria for pathological gambling, thus experiencing at least some of the undesirable outcomes mentioned above.  These numbers are likely to increase dramatically, as more states legalize betting on activities that have some of the broadest and most impassioned followings—sports.  People who don’t already gamble are probably more likely to start if they can bet on something they enjoy and understand.  For many people, that something is sports.
 
Because of its size and influence with sports fans, Buffalo Wild Wings would accelerate the growth of sports betting like few other companies could, should it choose to move forward with gambling.   However, that probability is only one concern.  Another is the impact Buffalo Wilds Wings would likely have on young people and their betting behavior.
 
As described earlier, Buffalo Wild Wings targets college students, many of whom love sports and already gamble.  These coeds will be easily won over to sports betting, although they can ill-afford it, both because of time (many should study more) and money (many college students have considerable debt).  However, an even younger demographic is at risk, should Buffalo Wild Wings begin sports betting.
 
As mentioned above, the chain also targets families with young children.  While it’s unlikely that any kids would place wagers at the restaurant, children do carefully observe and emulate the behavior of adults.  It’s sad to imagine so many children, most of whom love sports for the pure joy of playing or watching, being socialized into gambling on games.  Greenberg's Get Up! co-host Jalen Rose aptly expressed this sentiment as he said, "I don't want my grandpa teaching me about gambling at [age] seven."

 
It will be hard for Buffalo Wild Wings or any organization to resist the revenue that can come from entering the growing market for sports gambling.  Hopefully, however, the restaurant chain will recognize the unique influence it wields, especially on the lives of young people, and avoid betting on a strategy that can be considered “Single-Minded Marketing.”


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84 Comments
Zach Sheaffer
1/12/2019 10:11:09 am

Sports Gambling: I agree with everything you have said. Gambling brings an excitement level that simply viewing sporting events does not bring. You arguably become a more passionate fan because your hard earned money is invested in the game/games. Gambling is okay to an extent, everything in moderation is okay. However, the problem with gambling is the addiction that comes along with it. If you lose, you have to redeem yourself, so you gamble again, if you win this time, you will gamble again, then you may lose again, then you gamble again..it is a never ending cycle and can cause huge debt if you are not financially responsible and know your limits. Another issue is the target market of Buffalo Wild Wings. They bring in a lot of high school/college students. This demographic is always down for any type of thrill/excitement so if gambling is allowed at this restaurant, things can get messy, fast. Most high school/college students already are in debt and for most of these students, gambling is only going to put them more in the hole. Obviously, gambling will bring in millions of dollars in revenue annually for BWW, but is it ethically responsible to run the risk of putting hundreds of thousands, if not millions of students in even more of a financial burden?

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Owen Joyce
1/12/2019 02:23:58 pm

Sports Gambling: I don't see the issue with BWW bringing sports betting into the fundamentals of there restaurant. I think people should have the option to choose if they want to gamble or not. I don't think it should be BWW responsibility to worry about customers gambling addiction. People should be smart enough on their own to take care of themselves. BWW could make a fortune by introducing sports betting into their restaurants. The marketing is definately single-minded I agree with you there, but I personally feel that it will be very effective in attracting more of the current customers as well as a new market.

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Ima Undieh
1/12/2019 04:12:55 pm

Sports Gambling: The issue of sports gambling is purely ethical, similar to debates concerning smoking or alcohol prohibition. Since the topic is a subjective one, it will be difficult to convince any audience of a right or wrong answer. It is true that gambling – just like anything else – done in excess is bad. This applies to drinking or smoking since it is arguable that little alcohol can even prolong one’s life. It is also true of almost harmless substances such as caffeine. However, I would argue that gambling even sparingly is wrong and it is wholly incoherent with responsibility. Tracing it to the roots, the only force that drives one to partake in either of the two – betting or gambling – is greed. Greed is an evident vice. And it will, without hesitation, lead to other vices. We are aware of the latter but in denial of the former. Many disagree, but also notice that one does not have to be a sports fan to make money through sports gambling. In fact, sports gambling has absolutely nothing to do with sports: the games are placed as base for the mindless exchange of money, and it is easier to win if one knows the game better because predictions will be more probable. In all cases, gambling is wrong.

With that said, the argument becomes irrelevant since what people ought to do and what people will actually do become obvious. BWW bringing in sports gambling is simply embracing a business tactic. It is single minded, but it works. Convincing them to do otherwise is just like asking bars to stop selling alcohol just because people will be encouraged to become drunkards. This is because, despite the goal being to reduce the amount of single-minded marketing strategies upheld, those also appeal to a certain audience. If it did not and all people had equal moral strength, marketing will never be single-minded. Now, it is only up to people (both buyers and marketers) to make the wiser decision.

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Eric Weischedel
1/12/2019 04:30:40 pm

Betting On Sports Gambling: Buffalo Wild Wings introducing sports betting is a paradigm case of Single-Minded Marketing. That is to say, it creates stockholder value but does not uphold societal values. BWW markets its food and TV experience to any sports fans, families, and young adults. Because they are fanatics, these people would be thrilled to bet on their own team. Surely BWW would make money from this venture. However, is it ethical? This market segment does not consist of many gamblers. Therefore, BWW would be introducing this segment into gambling. These people, especially younglings, might not be ready to dive into gambling responsibly. Gambling is not for everyone, yet BWW would be selling it to everyone. Therefore, BWW would spark unhealthy gambling relationships. Because of BWW’s market, it would be unethical to introduce gambling as a product. On the flip side, in the case of a casino, the market is solely gamblers. Even though BWW and a casino would sell the same product, there would be much less harm caused by a casino because of its market. Those at a casino are more apt to gamble responsibly than those at BWW. Therefore, a casino is Mindful Marketing, while BWW is Single-Minded.

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1/13/2019 03:32:32 pm

Betting on Sports Gambling
I fully agree with what you have said. Gambling is very exciting because it causes adrenaline rush. Most of the people who gamble are adrenaline junkies who likes to play sports that has stakes in it like rock-climbing or sky-diving because you put your life at stake. In gambling, the stakes are money. Money is something which you earn through hard work but can be spent easily. Today, people desire to make quick money and gambling is an easy way to make it. Gambling is a game where you place money and if you lose, you lose the money but if you win, you doubled your money. Casinos, Buffalo Wild Wings and other gambling sites are aiming at our desire. They make our chances of winning slim so that they can make profits. The only thing that casinos and BWW is different is that casinos are aim at adults who are responsible at gambling whereas BWW are aim at families, college students and possible kids. Families, college students and kids who are new to gambling will be addicted to it because it is a new thing for them. It is like trying out a new drug and you love so much that you will do anything to get it. BWW will certainly have an increased in revenue due to gambling but it is unethical because it will cause gambling addiction issues to their customers.

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Ben Feenstra
1/13/2019 07:00:52 pm

Disclaimer: I have never had alcohol but I have gambled through a
variety of methods.

Gambling is fun and Buffalo Wild Wing's has no responsibility to people who are addicted to gambling or become addicted via their restaurants. In my opinion, gambling should be treated like alcohol. It's something nobody is forced to do and provides a lot of entertainment. Currently there is huge controversy about gambling in video games. "Loot boxes" have become a plague across many video game platforms. Players are able to pay a small amount of money for a guaranteed prize. Typically the prize is not worth as much as the money spent but there is always a chance to get the grand prize, which is what keeps people coming back. I would normally argue this is a non-issue but many of these games are specifically advertising towards children which I think is where the line should be drawn. The issue of gambling is not black and white. It should be allowed to those who want to play but who are also old enough to understand the risks involved. Buffalo Wild Wings wants to provide a service that will increase their consumer base but does not uphold typical societal values. I see no difference between offering gambling and offering alcohol to consumers of age.

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Nathan Winkelspecht
1/13/2019 07:31:47 pm

I mostly agree that gambling should not be introduced into restaurants like Buffalo Wild Wings. The fact that families with children are targeted by Buffalo Wild Wings could lead to a serious increase in young people addicted to gambling if introduced into restaurants. Young children imitate their parents and want to be just like them for the most part. This means with kids seeing their parents gamble they will want to take part in the act too. While there is an age restriction on gambling in each state, some parents would let their kids do it illegally to get a taste of what it is like. While this could be good for some children because the parent can monitor what happens, in others the parent could not care less and just let their kid run rampant with gambling which could get the child addicted to gambling. Now if Buffalo Wild Wings, or other restaurants that could adopt this idea, have a separate room with an age limit where the parents can gamble then I think that could be a way that gambling could be introduced without a big risk of young children getting exposed and potentially addicted to gambling.

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Kyle Anderson
1/30/2019 12:54:05 am

I think introducing sports gambling into Buffalo Wild Wing is definitely simple minded but on the other hand it isn't a bad idea for them to penetrate this market. I understand the dangers of gambling but Buffalo Wild wings shouldn't be held responsible for other peoples inability to control themselves. So I think implementing rules that wont allow the gambling to get out of hand would be beneficial to the success of this new market.

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Daniel Perez
3/15/2019 08:53:24 pm

I had no idea Buffalo Wild Wings was considering adding sports gambling to its menu. This will completely change their target market, since gambling adds a level of seriousness and intensity where the family-oriented restaurant will be pushed out. It seems like Buffalo Wild Wings want to trade one target market for another. I worry about the society and how that will affect the next generations. Growing up where gambling is easily accessible cannot be good to society and it causes me to worry about the effects it will have mentally on the youth of society.

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Drew Kujacich
3/17/2019 07:34:20 pm

Reading this article made me realize how gambling can be so addicting and lead to many problems. I find gambling is a very risky thing to do because you can be totally careless with your money and you end up betting on something that you think you will win, but it ends up not happening and then you can end up losing your money and go into debt, which is a big problem that gambling causes. Many people who gamble it can really change their attitude in life and how they treat other people. I did not realize that Buffalo Wild Wings was putting sports gambling on their menu, I can kind of see why they do this because they are a big sports restaurant and since so many people love to gamble on sports, they probably thought of this idea to add it to their menu to attract even more business. This really worries me about this and what will happen to their business especially with families of young kids because they would not want to take their kids to a place seeing people yelling and getting upset over bets. Also doing this will get children exposed to gambling at a young age and they could be persuaded to do it later in life, so this really has me wondering on how much this will have an impact on young children.

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Wilson Sebastian
3/18/2019 10:00:23 pm

Gambling for some people can be a way to earn their fortune, but most of the time people will only fall into debt. When I read this article, I realize how dangerous it is to gamble. People sometimes bet on money that they do not have. People will do anything to get the excitement, that they are getting when gambling. Therefore, sometimes they do not think of the consequences that they will face when they gamble their money. For businesses like Buffalo Wild to put gambling in their menu, it shows how the trend of gambling has been rising. This can be a real concern for the people out there. This means that people will have more comfortable excess for gambling, and it can create a bad habit for the people. When they gamble, they do not just risk their themselves, but also other people around them. Hopefully, the government can find a way to create an environment where it's safer for everybody to gamble. I think that gambling in public sets a bad example for other people.

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