US States Leave $43 Million Unspent on Problem Gambling Services Amid Administrative Barriers
US states allocated $188m but spent only $145m on problem gambling services in FY2025, leaving a $43m gap due to procurement delays, staffing shortages and late funding. The NAADGS report warns this risks future budget cuts as seen in DC’s FY2024 elimination. NCPG calls for integrated behavioral health treatment equal to substance use disorders.
SCCG Take — Administrative barriers, not low demand, drive underspending and threaten future allocations. States and operators must strengthen delivery infrastructure to sustain responsible gambling support.
US states allocated US$188m for problem gambling services in fiscal year 2025 but spent only US$145m, leaving a gap of around US$43m. Nearly 48 per cent of reporting states spent at least 5 per cent below allocations, while only 2 per cent exceeded budgets. Procurement delays, slow contracting, staff shortages and late funding arrivals drove the shortfall, according to reporting by Focus Gaming News. The NAADGS report cautions that these figures should not be read as evidence of low demand.
Risks of Persistent Underspending
The report warns that repeated underspending can shape future budget decisions. Legislators may view unspent funds as unnecessary rather than the result of infrastructure shortfalls. The District of Columbia demonstrates the consequences. Its dedicated problem gambling budget went unspent for several years before being eliminated in FY2024. The Department of Behavioral Health continues to provide treatment, but doubt remains about the extent of services. Capacity is limited for expanding treatment, training clinicians, supporting peer-recovery programmes or promoting services.
Lack of National Funding and Leadership Transition
Unlike substance use and alcohol use disorders, gambling disorder has no dedicated federal agency responsible for funding, coordinating and overseeing services. Public investment amounts to approximately US$75 per affected person compared with US$919 per person affected by substance use disorders. The National Council on Problem Gambling (NCPG) highlighted the absence of a national monitoring system comparable to the National Survey on Drug Use and Health and a consistent workforce development pipeline.
“NCPG believes it is time to stop treating problem gambling as a stand-alone line item and start treating it as what it is: a behavioural health condition that deserves the same integrated response we’ve built, however imperfectly, for substance use disorders”, the NCPG said.
Heather Maurer stepped down as executive director of the NCPG last month, less than a year after taking the position. The exit follows controversy surrounding the organisation’s partnership with Kalshi, which included a US$2m investment.
Reporting: Focus Gaming News
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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