A new report from the Federal Reserve Bank of New York shows consumer credit health is suffering in the wake of sports betting’s legalization.
Sportsbooks are now legal across most of the country, and financial data shows last year Arkansans wagered an average of nearly $1.8 million every day placing sports bets. But this type of gambling is taking a terrible toll on families’ finances.
A new report from the Federal Reserve Bank of New York found legalization of sports betting leads to a tenfold increase in spending at online sportsbooks. Researchers also found an increase in credit delinquencies and a decline in credit scores after legalization.
This is just the latest report showing the financial harm that sports betting causes.
Research now shows that the legalization of sports betting may be linked to serious financial problems like credit card debt, overdrafts, late payments on loans, lower credit scores, and higher bankruptcy rates.
A UCLA study found that states with online sportsbooks saw credit scores decline three times as much as states with only physical betting locations.
One writer at The Atlantic described sports betting’s impact as “a wave of financial and familial misery” for households that are least able to afford it.
Besides the financial impact, studies have also linked legal sports betting to increases in binge drinking, mental harm, and even violent crime.
Sports betting is out of control. It’s corrupting sports, and it’s ruining lives.
Tax revenue from gambling has not improved Arkansas’ roads or boosted the economy. As powerful corporations try to make gambling part of everyday life, it’s important for Arkansas to protect its citizens and families from predatory gambling.
Otherwise gambling addiction will simply continue wrecking lives and hurting families in our state.
Articles appearing on this website are written with the aid of Family Council’s researchers and writers.
