• Loading stock data...
Wednesday, August 6, 2025
Tuned In returns to NYC on September 16. Hear from the biggest names in sports media. Click here to get your spot

New Study Shows ‘Far-Reaching’ Financial Pain of Sports Gambling

  • A new study links sports betting to a decrease in long-term investments.
  • The links were especially strong in “financially constrained” and “vulnerable” households.
Tanya Breen – Imagn Images

Six years out from the widespread legalization and acceptance of sports betting in the United States, the sports world has been plagued over and over by scandals. A wave has hit in 2024, from Shohei Ohtani’s interpreter to Jontay Porter to most recently, the Notre Dame men’s swimming team. Now, a new study by researchers at BYU, Kansas, and Northwestern is linking sports betting with long-term negative financial consequences for gamblers.

The researchers used credit and debit card transaction data from 2010 to September 2023 to see how people spent their money, and they found a link between an increase in sports betting with a decrease in long-term financial planning.

“People are basically taking away money from long-term investments, and they’re spending it more in the present,” Scott Baker, a co-author and a finance professor at Northwestern’s Kellogg School of Management, tells Front Office Sports. “But then we also see that they are more, maybe, exposing themselves, to some extent, to more financial instability or financial fragility, kind of increasing amounts of overdrafts, running up more debt on their credit card, and things like that.”

The July 9 paper finds that for every dollar spent on sports betting, net investments go down by slightly over two dollars.

“We’re basically finding that this is not just a reorganization of people’s entertainment spending, but that it’s kind of affecting other parts of their financials, and maybe more of their long-term financials than we may have maybe hoped,” Baker says.

The links were especially strong among people who were already more prone to quicker, riskier ways to make money or were already prone to financial issues like overdrafts or overspending. The paper calls these “financially constrained” and “vulnerable” households.

“The legalization of sports betting has far-reaching implications for household financial behavior and health. Our results show that not only does sports betting lead to increased betting activity, but it also leads to higher credit card balances, less available credit, a reduction in net investments, and an increase in lottery play,” the paper concludes. “These findings suggest that while sports betting offers new avenues for state revenue, it also introduces significant financial risks to local residents, especially for already constrained households.”

Another similar study published Aug. 2 used credit bureau data to see whether increased sports betting can impact credit scores. It found that credit scores decreased and bankruptcies skyrocketed in states that legalized sports betting, especially among young men in lower-income counties. Baker says he sees that paper as complementary to his own.

“In as much as a lot of states and the federal government want to encourage people to maybe save more for their retirement or for longer-term things and to kind of reduce buildup of debts and overdrafts and things like that, this might be at least one piece of evidence that has to be taken into account when thinking about how and when and what sorts of people are able to sports gamble,” Baker says.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Oct 3, 2021; Inglewood, California, USA; A general overall view of the NFL Network building adjacent to SoFi Stadium.
exclusive

ESPN Taking Over NFL Network’s Lease Near SoFi Stadium

The network is picking up a little real estate in its mega-deal.

Disney Buying NFL Network, NFL Getting 10% Stake in ESPN

The deal rewrites the playbook for pro leagues and their TV partners.
Jul 28, 2025; Arlington, Texas, USA; Dallas Wings guard Paige Bueckers (5) and guard DiJonai Carrington (21) during the game between the Dallas Wings and the New York Liberty at College Park Center.

WNBA Trade Deadline Hits Ahead of Looming CBA Chaos

The trade deadline is Thursday at 3 p.m. ET.

Featured Today

Inked Under Anesthesia: Athletes Getting $50,000 Tattoos

High-end studios, elite artist teams, and hours under anesthesia.
Coco Gauff at New York Liberty
August 2, 2025

How the New York Liberty Became the Hottest Ticket in Town

Once banished to the burbs, the Libs are now Brooklyn’s marquee attraction.
Las Vegas sign
July 29, 2025

College Sports Embracing Vegas After Years of Cold Shoulder

The Big Ten became the latest newcomer to Sin City.
2000, Jupiter, FL, USA; FILE PHOTO; Montreal Expos pitcher Hideki Irabu in action on the mound against the New York Mets at Roger Dean Stadium during Spring Training
July 28, 2025

Dead Sports Franchises Are Alive and Well on Twitter

The Expos, Sonics, and Whalers have active social media accounts.
Emmanuel Clase

Emmanuel Clase Gambling Leave Not Costing Finlete Investors—Yet

Clase is the company’s only client currently in the majors.
Polymarket
July 21, 2025

Polymarket Set to Become Legal in U.S. After Buying Small Exchange

Derivatives exchange QCX was recently licensed by the CFTC.
Jun 21, 2025; West Sacramento, California, USA; Cleveland Guardians pitcher Emmanuel Clase (48) throws a pitch against the Athletics during the ninth inning at Sutter Health Park.
July 28, 2025

Guardians Star Closer Put on Paid Leave Amid Gambling Probe

Emmanuel Clase joins fellow Guardians pitcher Luis Ortiz on paid leave.
Sponsored

Game On: Portfolio Players Stories, Brought to You by E*TRADE from Morgan Stanley

Dealmaker Jeffrey Kaplan maps the evolution of sports as an asset class
Jun 9, 2025; Cleveland, Ohio, USA; Cleveland Guardians starting pitcher Luis Ortiz (45) reacts after giving up a home run during the fourth inning against the Cincinnati Reds at Progressive Field.
July 18, 2025

MLB Pitcher’s Paid Leave Extended Through August As Betting Probe Continues

Leagues have been dealing with a host of sports betting issues.
Mar 31, 2025; Washington, District of Columbia, USA; Miami Heat guard Terry Rozier (2) drives to the basket against Washington Wizards guard AJ Johnson (5) during the first quarter at Capital One Arena.
July 16, 2025

Terry Rozier’s Attorney Confirms He’s Still Under Federal Gambling Probe

Rozier finished the season playing for the Heat despite the federal probe.
The Department of Justice logo on a podium at the Louisville, Kentucky office. July 1, 2025
July 16, 2025

Prediction Market Platform Polymarket Says It Escaped Federal Probe

Prediction markets are having a moment.
DraftKings
exclusive
July 14, 2025

DraftKings in Talks to Acquire Prediction Market Railbird Exchange

Sportsbooks and prediction markets are becoming increasingly intertwined.