Sports betting has grown into a multibillion-dollar industry. It’s also become a drag on many Americans, especially young men, according to recent research.
In states that allowed sports betting after the 2018 Supreme Court ruling, more people went bankrupt. Also, credit scores decreased. Another indicated that someone gambled the money that they could have invested instead. A third found that young men were devoting hours to gambling each day at the expense of work and education.
“Howard,” a man in his mid-20s from North Carolina, told Investopedia he loses about $40,000 a year betting on sports. He dealt with this for seven years until he joined Gamblers Anonymous in October and stopped. He detailed his experience on the condition that he not use his real name.
When Howard got to college, he said betting apps like TonyBet let him wager anytime and anywhere. He often lost his financial aid and paychecks.
Tax Revenue Rolls In, But Finances Are At Stake
DraftKings, FanDuel, and Bet365 have simplified betting. As of December, bettors have wagered almost $500 billion since the ruling. This amount grows each year, says Sportsbook Review, a betting site.
Bankruptcies increased by 25% to 30% in states with legalized online gambling. This was higher than in states where gambling was illegal. The study, led by Brett Hollenbeck, a professor at UCLA, looked at the finances of 7 million Americans.
Hollenbeck’s study found that credit scores fell 1% more in states with gambling. States without gambling saw a lesser decline. Also, debt collections rose by 8%.
A study by Scott R. Baker, an economics professor at Northwestern University, found that many people skip investments and retirement savings. They do this to support their hobbies.
Does The New American Pastime Have ‘Unintended Consequences’?
Gambling takes a lot of time, too. A study by Owen Fleming, a doctoral candidate at Wayne State University, looked at data from the Bureau of Labor Statistics’ American Time Use Survey.
In sports betting states, people enjoyed more leisure time. They spent less time on chores and grooming, his research showed.
Younger men (ages 18 to 25) in gambling states showed more dramatic effects. They spent nearly two extra hours a day on leisure activities. This mainly included watching TV and socializing, which hurt their education and work.
Fleming and his team studied the issue. Their research shows there are trade-offs to consider. Lawmakers should factor these in when thinking about legalizing gambling in their states. Sports betting raises tax revenue that’s hard to come by elsewhere and can be an enjoyable pastime. But it appears to be sucking up money and time from young men, with unknown long-term consequences.
“Lots of young men are spending less time on things like education and work,” Fleming said. “It’s not clear if this will lead to lower tax revenue. Still, policymakers should think about the possible unintended consequences.”
A Syringe That’s ‘Loaded and In Your Pocket’
Sports betting companies say their industry isn’t worse than other hobbies that take time and money.
Maloney said research shows that legalizing mobile sports betting didn’t clearly affect people’s mental or financial health. A 2024 study by Tim Bersak, an economics professor at Wofford College, found that Census data showed no increase in money issues or stress in states with online betting. This was like states that don’t have it.
The industry has taken steps to mitigate the damage from serious gambling addiction. Users of popular sports gambling apps can set money limits. Gaming operations also help advertise the 1-800-GAMBLER addiction hotline. But like many problem gamblers, Howard didn’t get help until a lot of damage had been done. He blames his gambling habit for his money problems. This led to leaving college, broken relationships, and losing his car.