A recent study has shed light on the devastating impact of online sports betting on financially constrained households in the United States. The rapid growth of the industry has led to a surge in credit card debt, declining credit scores, and reduced long-term investments among Americans, particularly those from low-income backgrounds.
Since the Supreme Court’s decision to overturn the federal ban on sports gambling in 2018, 38 states have legalized and launched sportsbooks, generating $11 billion in revenue in 2023 alone. However, this boom has come at a cost to households already struggling with financial stability.
The study found that:
- 7.7% of respondents actively participate in sports betting, with an average annual expenditure of $1,100 per household.
- Households with higher levels of credit card debt are more likely to engage in gambling, exacerbating their financial difficulties.
- Households in the bottom third of the income bracket experienced the most significant increase in betting-related spending.
The findings present a dilemma for policymakers, who must weigh the tax revenue generated by the industry against the negative impact on financially vulnerable households. 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.
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