Sports betting in US causing financial constraint in low-income households | The Express Tribune

A new study recently revealed that the rapid growth of online sports betting in the United States is disproportionately affecting financially constrained households.

The research highlights the adverse effects of this booming industry on low-income Americans.

NBC News reports that online sports betting has skyrocketed from an average of $1.1 billion per month in 2019 to $14 billion by January 2024.

This surge has contributed to rising credit card debt, declining credit scores, and reduced long-term investments among Americans.

Since the Supreme Court’s 2018 decision to overturn the federal ban on sports gambling, 38 states have legalised and launched sportsbooks, with over $120 billion wagered and $11 billion in revenue generated in 2023 alone.

However, this surge in gambling activity has come at a cost to households that are already struggling with financial stability.

The study, which surveyed 230,171 households across states where sports betting is legal, found that 7.7% of respondents actively participate in sports betting, with an average annual expenditure of $1,100 per household.

Alarmingly, those with higher levels of credit card debt were more likely to engage in gambling, exacerbating their financial difficulties.

Researchers noted that households in the bottom third of the income bracket experienced the most significant increase in betting-related spending.

These households, already facing limited financial resources, are now grappling with rising debt, decreased credit availability, and a higher likelihood of overdrawing bank accounts.

The findings present a dilemma for policymakers. While tax revenue from the gambling industry can fund state investments, the negative impact on financially vulnerable households is undeniable.

The study warns that the growth of legalized sports gambling may undermine government initiatives aimed at promoting savings and financial literacy among low-income Americans.