Legal Sports Betting Leads to Financial Strain

The expansion of legalized sports gambling in the U.S. has led to significant negative financial impacts on households, including reduced savings, lower investments in financially sound assets, and increased bankruptcies and credit score declines. Studies from institutions like Northwestern University, UCLA, and USC reveal that states with legalized sports betting have seen a 0.3% drop in average credit scores, with a full 1% drop in areas where online betting is most prevalent, and a 28% increase in bankruptcies. Despite these financial woes, states have benefited substantially from tax revenues, with New York earning $862 million in tax revenues last year from sports betting. The accessibility and addictive nature of online sports betting apps are major contributors to these financial issues.