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A new study of more than 183,000 U.S. households found that legal online sports betting was associated with weaker long-term finances, including lower saving and investing and, for some households, higher credit card debt.
According to KJZZ, researchers from Brigham Young University, the University of Wisconsin-Madison and the University of Kansas examined financial transaction data and found betting activity increased after online sports betting became legal in a state. The study said households reduced deposits into brokerage and investment accounts by about $81 per quarter on average after legalization.
The effect was larger among frequent bettors. That group reduced investment deposits by about $221 per quarter on average, while depositing more than $1,100 per quarter into sports betting apps after legalization. The study also found nearly 40% of bettors made deposits to betting apps at least 10 times, with average deposit amounts rising over time.
Researchers said the financial strain appeared more pronounced among households with lower savings. Those households were more likely to cut investing, increase credit card debt and rely on consumer loans after legalization.
Notably, the study found online sports betting did not significantly reduce overall household spending. Instead, households spent more on categories including restaurants, alcohol and cable or telecommunications services. Researchers argued that pattern suggests sports betting may affect household finances differently than other entertainment spending.
As a comparison, the researchers looked at spending tied to Taylor Swift’s Eras Tour and found concert spending did not lead to the same drop in investments or increase in borrowing.
For readers following sports betting policy, the study adds to the consumer-protection debate as more states weigh online expansion. The article did not identify specific states included in the analysis, the study’s publication venue, or the authors by name, but it said the researchers believe policymakers should consider safeguards that add friction to betting or strengthen consumer protections while preserving legal access.
If more states revisit online sports betting legislation, findings like these could draw closer attention to affordability checks, deposit controls and other responsible gambling measures.
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Source: As reported by Jim Spiewak.
