🌅 Bankruptcies After Legalizing Sports Gambling

SOURCE

Hollenbeck et al. (2024)

WHAT TO KNOW

• States that legalize online sports gambling experience a 25% to 30% rise in bankruptcy rates within just four years of legalization, translating to roughly 30,000 more bankruptcies in the U.S. each year. Average credit scores also take a 0.3% hit when a state legalizes any form of sports betting, with scores decreasing three times as much in states that allow online or mobile sports betting.

WHY IT MATTERS

• The present study didn’t uncover any significant differences between demographic groups, however, research has long shown that men—particularly young men—are more vulnerable to gambling addiction than women. Current research also suggests people in their 20s are the fastest growing group of gamblers, while 60% to 80% of U.S. high schoolers report gambling in the past year.

CONNECT THE DOTS

• Living near a casino is associated with greater financial hardship and worse mental health, and increases a person’s risk of problem gambling. Experts say it’s too early to know the long-term impacts of legalized online sports gambling, and what happens when the casino moves from the street to the phone.