Online sports betting is pulling young men into debt on a scale that now props up part of the US economy — bad for gamblers, good for the betting apps and the states taxing them.

• Betting apps use AI to spot the customers most likely to lose and push them free bets and bonuses.
• Half the profit at these companies comes from a small group of addicts, the same pattern as cigarettes and alcohol.
• Winning bettors get quietly capped so they can't keep making money, while losers are allowed to bet big.
• Prediction markets like Kalshi are running the same business: most of their volume is parlay-style bets with a heavy house edge.
• States that legalize online betting see bankruptcies and credit card debt jump, and California and Texas are now opening up.

Outlook: With $15 billion wagered in a single NFL week and no real consumer protection in place, the losses and the debt will keep growing.