Complex sentence: This issue can have an effect on the wildlife on both land and water because animals will confuse deflated balloons as food, nesting material, or simply something to play with and when that happens it can lead to negative effects for the animals.
Split into simpler sentences: This issue can have an effect on the wildlife on both land and water because animals will confuse deflated balloons as food, nesting material, or simply something to play with. When that happens, it can lead to negative effects for the animals.