[dabigv13]

https://www.businessinsider.com/sports-b...ion-2024-8

A new working paper from researchers at the University of California, Los Angeles, and the University of Southern California takes a look at what's happened to consumer financial health in the 38 states that have greenlighted sports betting since the Supreme Court in 2018 struck down a federal law prohibiting it. The findings are, well, rough. The researchers found that the average credit score in states that legalized any form of sports gambling decreased by 0.3% after about four years and that the negative impact was stronger where online sports gambling is allowed, with credit scores dipping in those areas by 1%. They also found an 8% increase in debt-collection amounts and a 28% increase in bankruptcies where online sports betting was given the go-ahead. By their estimation, that translates to about 100,000 extra bankruptcies each year in the states that have legalized sports betting. The number of people who fell dangerously behind on their car loans went up, too. Oddly enough, credit-card delinquencies fell, but the researchers believe that's because banks wind up lowering credit limits to try to compensate for the rise in risky consumer behavior.

"We look at the general introduction of sports gambling and separately the introduction of online access, which is mostly these mobile apps like DraftKings and FanDuel," said Brett Hollenbeck, an associate marketing professor at UCLA's Anderson School of Management and one of the paper's authors. "Where we find the big effects is when the online mobile access goes in."

[dabigv13]

https://www.businessinsider.com/sports-b...ion-2024-8

A new working paper from researchers at the University of California, Los Angeles, and the University of Southern California takes a look at what's happened to consumer financial health in the 38 states that have greenlighted sports betting since the Supreme Court in 2018 struck down a federal law prohibiting it. The findings are, well, rough. The researchers found that the average credit score in states that legalized any form of sports gambling decreased by 0.3% after about four years and that the negative impact was stronger where online sports gambling is allowed, with credit scores dipping in those areas by 1%. They also found an 8% increase in debt-collection amounts and a 28% increase in bankruptcies where online sports betting was given the go-ahead. By their estimation, that translates to about 100,000 extra bankruptcies each year in the states that have legalized sports betting. The number of people who fell dangerously behind on their car loans went up, too. Oddly enough, credit-card delinquencies fell, but the researchers believe that's because banks wind up lowering credit limits to try to compensate for the rise in risky consumer behavior.

"We look at the general introduction of sports gambling and separately the introduction of online access, which is mostly these mobile apps like DraftKings and FanDuel," said Brett Hollenbeck, an associate marketing professor at UCLA's Anderson School of Management and one of the paper's authors. "Where we find the big effects is when the online mobile access goes in."