Source: Fortune
Summary
A new study by the Federal Reserve Bank of New York found that credit delinquency rates have increased by 0.3% in states where sports betting has been legalized, with a 10% increase in delinquency rates among those who participate in sports betting. The study analyzed consumer credit data and defined delinquency rates as being 90 days past due on any credit purchase. Millennials and Gen Z are particularly vulnerable to negative financial consequences, with 22% of Americans having an account with at least one online sportsbook. The study’s findings suggest that sports betting can have dramatic implications for household financial stability.
Our Reading
The numbers tell one story. The widespread financial consequences of sports betting are becoming increasingly clear. Millennials and Gen Z are bearing the brunt of the negative financial consequences, with delinquency rates rising to 26% after legalization. The study’s findings are backed by other research, including a working paper published by the National Bureau of Economic Research, which found that household bets increased $1,100 per year in states with legal online sports betting. The future of legal sports betting looks uncertain, with prediction markets emerging as a new threat to financial security.
One thing is certain: the house always wins, but at what cost?
Author: Evan Null
