I'd argue that, while a portion of this rise obviously consists of troubled/problem/addicted gamblers, a huge part of the rise of gambling is from desperation: The public's growing belief that the traditional wealth-producing ladders have all been pulled up, and that gambling is the last remaining hope that normal people have of making decent money.

"Work hard all your life and retire with a pension." - fantasy in 2026.

"Invent something new and capitalize on it." - not realistic in the face of gigantic, powerful, all-owning corporations who will squash you.

"Buy an existing business and live off the proceeds." - impossible without existing wealth.

"Become a famous pop star or sports hero." - as improbable as ever.

People have no hope anymore, and hopeless people turn to random chance as the last and only remaining option.

IMO prediction markets are an interesting tool but you can just ban sports gambling and keep 100% of their value and remove 90% of their downsides.