Share 
Gaming Edge’s TL;DR
- A new study shows a link between online sports betting and lower savings and more borrowing.
- Frequent betters were cited as the most likely to have low savings.
A new study of more than 183,000 US households found that legal online sports betting was associated with lower savings, reduced investing, and more borrowing after states allowed mobile wagering.
The research, cited in a July 21 KUTV report, adds new evidence to the policy debate around online sports betting expansion. Researchers from Brigham Young University, the University of Wisconsin-Madison, and the University of Kansas found the financial effects were most pronounced among frequent bettors and households with lower savings.
On average, households cut deposits into brokerage and investment accounts by about $81 per quarter after online sports betting became legal, according to the study. Among frequent bettors, that decline reached about $221 per quarter.
The study also found frequent bettors were depositing more than $1,100 per quarter into sports betting apps after legalization. Nearly 40% of bettors made app deposits at least 10 times, and the average amount deposited increased steadily over time.
Researchers said lower-savings households were more likely to reduce investing, increase credit card debt, and rely on consumer loans after online sports betting became legal.
Household spending mainly stayed the same
At the same time, the study found sports betting did not significantly reduce overall household spending. Instead, spending increased in categories including restaurants, alcohol, and cable or telecommunications services.
To test whether the effect reflected entertainment spending more broadly, researchers compared sports betting with spending tied to Taylor Swift’s Eras Tour. According to the report, concert spending did not produce the same pattern of reduced investments or increased borrowing.
The findings could matter as more states consider expanding online sports betting.
The researchers suggested policymakers consider regulations that add more friction to betting or strengthen consumer protections while preserving legal access.
Based on reporting by Jim Spiewak for KUTV2.
