US states left US$43m in problem gambling funds unspent despite rise in demand

Procurement delays and staff shortages left prevention, treatment and helpline money unused.

Key takeaways

• US states allocated US$188m to problem gambling services in fiscal year 2025 but spent only US$145m, a gap of around US$43m, according to a NAADGS report.
• Nearly 48 per cent of reporting states spent at least 5 per cent below their allocations, while only 2 per cent exceeded their budgets.
• The report blames procurement delays, slow contracting, staff shortages and funding arriving late in the fiscal year, and says underspending should not be read as low demand.

U.S.- The National Council on Problem Gambling (NCPG) has warned that nearly half of the US states that reported their spending on problem gambling services used less than their allocated budgets in fiscal year 2025. That’s according to a July report by the National Association of Administrators for Disordered Gambling Services (NAADGS). While states allocated a combined US$188m, they spent only US$145m, leaving a gap of around US$43m.

The report attributes the gap largely to administrative and operational barriers, including procurement delays, slow contracting processes, staff shortages and funding arriving too late in the fiscal year. The report warns that underspending should not be interpreted as evidence of low demand. Instead but a lack of the infrastructure and workforce needed to put allocated funds to use. Nearly 48 per cent of reporting states spent at least 5 per cent below their allocations, while only 2 per cent exceeded their budgets.

The NAADGS report cautions that repeated underspending can also shape future budget decisions. Legislators may interpret unspent funds as evidence that the money was unnecessary, rather than recognising the staffing and administrative barriers preventing its use.

The District of Columbia shows the potential 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 has been cast on the extent of those services. Without dedicated funding, , the city has limited capacity to expand treatment, train clinicians, support peer-recovery programmes or promote government services, the report says.

Lack of national funding

Unlike substance use and alcohol use disorders, gambling disorder has no dedicated federal agency responsible for funding, coordinating and overseeing services. The NCPG also highlighted the absence of a national monitoring system comparable to the National Survey on Drug Use and Health, as well as a consistent workforce development pipeline.

According to the report, public investment in problem gambling services amounts to approximately US$75 per affected person, compared with US$919 per person affected by substance use disorders.

“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.

Council restructuring

Last month, Heather Maurer stepped down as executive director of the National Council on Problem Gambling (NCPG) less than a year after taking the position. Maurer’s exit follows controversy surrounding NCPG’s partnership with Kalshi. In May, the organisation announced a multi-year agreement that included a US$ 2 m investment from Kalshi, while making the company the first member of its new Financial Services & Trading membership category.

Frequently asked questions (FAQs)

• Why are states underspending on problem gambling services? A report cites procurement delays, slow contracting, staff shortages and funding arriving too late in the fiscal year. It says these barriers reflect a lack of infrastructure, not low demand.
• Is there a federal agency responsible for problem gambling services in the US? No. Unlike substance use and alcohol use disorders, gambling disorder has no dedicated federal agency to fund, coordinate and oversee services, and no national monitoring system comparable to the National Survey on Drug Use and Health.