Have you heard that artificial intelligence (AI) is the fastest-growing sector in the U.S. economy? Harvard economist Jason Furman recently wrote that AI accounted for 92% of the growth in GDP in 2025.

It’s understandable, with all those data centers being built, chips being fought over, and chatbots proliferating like wildflowers. What’s not so understandable is who’s in second place in GDP growth? Gambling!

That’s right! Gambling, mostly sports betting, is the second-fastest growing sector of the U.S. economy. This news comes from the Bureau of Labor Statistics. From 2019 through 2024, software grew at an annual rate of 8.9% and gambling grew at 7.6%.

The speed with which gambling has scooped up America’s disposable income is stunning. Business Insider says the haul from sports gambling increased from $120 billion in 2023 to $150 billion in 2024. That’s a one-year increase of 25%. Gambling is growing faster in a month than the entire economy grows in a year.

In a recent video on the scourge of gambling addiction, Saagar Enjeti, co-host of Breaking Points, recited a list of other achievements for sports wagering:

• The gambling sector generates more annual revenue than the motion picture industry
• Gambling is now by far the largest entertainment sector
• Gambling markets and prediction markets face few restrictions on insider trading
• Gambling platforms and prediction markets are allowed to ban heavy winners

The infiltration of prediction markets such as Polymarket and Kalshi into sports wagering has rapidly expanded the penetration of everyday gambling into American households. Enjeti says that 91% of Kalshi’s revenue — and 40% of Polymarket’s — is now tied to sports wagering.

We reported recently at AddictionNews about the deal cut between Comcast/Infinity and sports playbooks FanDuel and DraftKings. Comcast is enabling onscreen betting on live sporting events right through the TV remote. Recently, odds for the Golden Globe Awards were displayed live during the telecast thanks to Polymarket.

The ability to bet on anything, anytime, without scrutiny, has led to a sense that more and more events are being rigged — and not just sporting events. One lucky gambler walked away with $400K by correctly predicting the rendition date of Venezuelan president, Nicholas Maduro.

Suspicions were also raised when White House Press Secretary Karoline Leavitt abruptly ended a press conference 30 seconds before the 65-minute mark. With 98% odds of the press conference lasting longer than 65 minutes, Leavitt’s shutdown netted a couple of lucky gamblers a huge windfall.

Sports wagering and smartphone gambling have resulted in an era when the outcome of any event is suspect, and the ability of gambling syndicates to prey upon the most vulnerable remains unchecked.

Written by Steve O’Keefe. First published January 27, 2026.

Sources:

“Productivity and Costs by Industry: Selected Service-Providing Industries News Release,” Bureau of Labor Statistics, June 26, 2025.

“Gambling Now Underpins Entire US Economy,” Breaking Points, January 16, 2026.

“America is one big casino now,” Business Insider, December 19, 2024.

“‘A New Low’: Viewers Trash Golden Globes for Displaying Polymarket Odds Throughout Award Show,” Mediaite, January 12, 2026.

“A $400,000 profit on Maduro’s capture raises insider trading questions on Polymarket,” NPR “All Things Considered,” January 5, 2026.

“Gamblers cry foul after White House briefing ends seconds before key betting cutoff,” Raw Story, January 8, 2026.

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