18% of online sports bettors lose money needed for living expenses.
According to a new study from researchers from UCLA and USC called “The Financial Consequences of Legalized Sports Gambling,” credit scores have dropped and financial distress associated with sports gambling has skyrocketed in states that went all-in on sports betting since 2018.
The 38 US states that legalized sports betting after the Supreme Court lifted a ban just so happened to also be places where the average credit score fell by 0.3%, with a drop of a full 1% in areas where online sports betting is most prevalent. That lines up with another recent study, which claimed that 18% of online sports bettors lose money needed for living expenses.
The UCLA and USC team also found an 8% increase in debt collection amounts and a ridiculous 28% increase in bankruptcies in those states. Car loan delinquencies are already on the rise, and these states have seen about 100,000 additional bankruptcies in the years since sports betting was legalized. Great idea, guys!
The research made all sorts of fascinating specific claims like the ones mentioned above. When it discusses the why of it all, it makes some less observant but still very valid points. For instance, it attributes all of this financial loss to the accessibility and addictive nature of online sports betting apps. Turns out that putting a bookie in the pocket of every young broke man in America made people lose even more money.
