Three recent reports on sports betting suggest the activity is having an impact on American finances.
Two academic papers cited by NBC News and a third report from TransUnion suggest dollars being spent on sports betting may be coming from other areas, like bills and investments.
For example, 44% of online bettors who gamble more than $500 monthly say they are unable to pay all of their current bills and loans, according to the TransUnion study. That compares to 43% of in-person bettors of the same size but 24% of non-gamblers.
Nearly half, or 49% of the online gamblers betting more than $500 monthly, have been past due on a bill or loan for 90 days or longer in the last year. That drops to 42% for those in-person bettors and 18% for non-bettors.
Sports betting study methodologies
TransUnion’s report used online survey data from 3,000 adults 18 or older in the US collected by Dynata between April 29 and May 8.
The study led by Northwestern professor Scott Baker used information from a quarterly panel of 230,171 American households and used household-level transaction data and a staggered difference-in-differences framework.
The study led by UCLA professor Brett Hollenbeck used data from the University of California Consumer Credit Panel. That includes financial information from a nationwide credit bureau for a sample of about 7 million adults.
Those with less deposit bigger share
One study led by Baker looked at betting’s impact on “vulnerable households.”
“Moreover, while bets come from all along the income distribution, we find that financially constrained households deposit a larger fraction of their income than households facing fewer constraints,” the study states in its introduction.
The study shows sports betting increases credit card debt for low savings households by about $368, about 8% higher than the mean. Untabulated results also suggest legalization of sports betting “significantly increases the probability that low savings households max out their credit cards.”
Financial issues start 2 years post-sports betting
Another study led by Hollenbeck says the effects of sports betting on finances begin about two years after online betting is legalized in a state.
There is about a 28% increase in bankruptcy likelihood and an 8% increase in debt collection amounts in states with access to online gambling compared to those without. Young men, especially those in low-income counties, are most affected financially, the study found.
“While many consumers get real enjoyment from legal gambling, and states benefit in the form of additional tax revenue, there is a corresponding concern that the introduction of sports gambling and the ease at which consumers can now bet online are negatively harming consumer financial health,” the study says.
FanDuel providing STEM aid
FanDuel will partner with Advancing Indigenous People in STEM to “promote Indian country workforce development in the STEM fields and its importance for the gaming industry’s future.”
The partnership specifically supports Resources for Indigenous STEM Education, or RISE Program, though providing travel to gaming industry gatherings, financial support and mentorship opportunities.
FanDuel will be at the AISES Conference in San Antonio from Oct. 3-5.
DraftKings launching WI sports betting
DraftKings will begin in-person sports betting at the Lake of the Torches Casino in Wisconsin on Wednesday, pending approvals.
The launch follows an agreement between the sportsbook and the Lac du Flambeau Band of Lake Superior Chippewa Indians.
Bettors 21 and older will have access to six kiosks and one window counter across from the casino’s sports bar.
Betr acquires sports betting tech license
The Joey Levy and Jake Paul-backed sportsbook Betr acquired a license for Huddle Tech‘s tech stack.
The technology includes oddsmaking, risk and trading tools, and content for same-game parlays, micro markets, and props.
The technology is already integrated into the new Betr platform, which should launch before NFL betting starts. The platform will replace the beta product already live in Ohio and Virginia.
