The Hidden Cost of Sports Gambling

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The one thing Americans love more than sports? Gambling on it.

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Americans wagered a record $119.8Bn on sports in 2023, up 27.8% from 2022.

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But legalizing sports gambling comes with a cost.

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Those who participate in sports gambling tend to invest less and have higher debt levels. At least that’s what a recent study concluded after analyzing 230K households across states that have legalized sports gambling:

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• Net investments in states where sports betting was legalized fell ~14% in 2-3 years
• For every $1 a person bet on sports, it reduced their net investment in stocks and other financial instruments by $2.13
• Low savings households reduced their quarterly total credit card payments by $890 following betting legalization 

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Sports gambling is booming, but the real gamble is folks deferring money that could have been in their investment portfolios.