A budget update report published in July 2026 by the National Association of Administrators for Disordered Gambling Services (NAADGS) has revealed that nearly half of reporting United States states fell short of their allocated problem gambling budgets in fiscal year 2025. While states allocated approximately $188 million for problem gambling services during the period, only about $145 million was actually spent, leaving a $43 million gap that underscores a severe national capacity crisis.
Unpacking the $43 million underspending gap
The NAADGS report indicates that 48 percent of reporting states underspent their problem gambling allocations by at least 5 percent in fiscal year 2025, while only 2 percent exceeded their allocations and the remainder came close. Rather than signaling a lack of demand, this underspending points directly to systemic administrative and clinical shortcomings. Procurement delays, protracted contracting timelines, workforce shortages, and late arriving funds prevent states from deploying resources effectively.
This capacity shortfall coincides with the rapid expansion of legal sports wagering across the United States following the 2018 repeal of the federal ban. Legal gambling has now spread to 39 states and the District of Columbia, with Americans legally wagering more than $668 billion on sports alone. Unspent funds create a misleading impression for legislators during subsequent budget cycles, frequently resulting in budget cuts rather than the necessary infrastructure investments.
Disparities in public health investment
Unlike substance use and alcohol use disorders, gambling disorder lacks a dedicated federal agency to coordinate funding or oversee services. Public investment in problem gambling services averages approximately $75 per affected person, compared with $919 per affected person for substance use disorders.
To address these disparities, the National Council on Problem Gambling (NCPG) recommends shifting from standalone line items to an integrated behavioral health response:
- Prevention: Embedding gambling harm prevention into existing school and community infrastructure rather than building parallel programs from scratch.
- Early Intervention: Implementing routine screening for gambling problems in primary care and behavioral health settings, similar to standard substance use screenings.
- Treatment: Building a credentialed provider network capable of absorbing and utilizing allocated treatment funds.
- Surveillance: Establishing a rigorous national gambling disorder prevalence survey comparable to major substance use surveys.
- Workforce Development: Investing in the clinicians, counselors, and administrators necessary to convert budget allocations into active services.
