How March Madness and Robinhood’s New Feature Are Fueling a Gambling Crisis
The NCAA Division I Basketball Tournament, popularly known as March Madness, is driving more than just hoops excitement—it’s fueling a gambling boom with serious consequences. This year, experts estimate over $3 billion is wagered on bracket outcomes, a trend that’s raising alarms about addiction and financial ruin. Amid this frenzy, Timothy Plan, a family of mutual funds and ETFs rooted in Biblical values, has divested from Robinhood Markets, Inc., citing a new feature that critics say crosses a dangerous line.
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Robinhood’s “prediction markets” tool allows users to bet portfolio funds on sports outcomes, blending investing with gambling in a way that’s drawn swift backlash. Massachusetts has launched an investigation, while New Jersey issued a cease-and-desist order. For Timothy Plan, the move was a step too far, landing Robinhood on its gambling filter alongside casinos and racetracks.
“Many think a little sports betting is as American as apple pie,” said Brian Mumbert, vice president of the Timothy Plan. “But when trading apps become indistinguishable from online casinos, it’s time to push back. Robinhood is trying to blur, or more precisely, obliterate, the line between investments and sports betting.”
The feature taps into the explosive growth of online gambling, which has surged since a 2018 Supreme Court ruling legalized sports betting nationwide. A JAMA Internal Medicine study found a 23% spike in gambling addiction-related internet searches since then. In 2023, about one in four U.S. adults participated in March Madness betting, from office pools to online platforms.
Timothy Plan’s decision reflects its mission to align investments with Christian principles. “Our clients want to live out their faith in their financial lives,” Mumbert added. “Apart from the tragedy of addiction, gambling is at odds with basic Christian principles and appeals to some of the most vulnerable aspects of human nature — from wanting something for nothing to squandering money that could have been used to invest in oneself or one’s family.”
The shift in sports culture is stark. Once taboo—think the 1919 World Series betting scandal—gambling is being embraced by sports leagues and financial firms alike as a revenue stream, but the moral implications and consequences can be secure. As stewards of God’s resources he has entrusted to us, Timothy Plan is warning investors of the contrast between investing and active gambling. Robinhood’s feature skirts regulations meant to curb addiction, drawing scrutiny from states and investors like Timothy Plan, which also excludes companies like Walt Disney (parent of ESPN) from its portfolios.
