New studies suggest that the rise of sports betting could be associated with financial difficulties • Source: New Mexico

Tax revenue from sports gambling has been a welcomed addition for states, but new studies are showing potential negative effects on consumers. Legal sports gambling has expanded to 39 states and the District of Columbia, leading to a significant increase in betting revenue. However, concerns have been raised about lower credit scores, higher credit card debt, and decreased household savings among sports bettors.
A working paper by researchers at the University of California, Los Angeles and the University of Southern California found that access to legal online sports betting led to lower credit scores and increased bankruptcies for consumers. Another study from Southern Methodist University found that the introduction of online casino gambling alongside online sports betting led to an increase in problem gambling.
While some state lawmakers are pursuing new restrictions on sports gambling, the industry is pushing back, arguing that legal betting provides transparency and helps to curb illegal betting markets. Despite conflicting research findings, some experts believe that sports betting may lead to households spending more on entertainment and betting while saving less.
As more states approve sports betting, regulators are working to address concerns about problem gambling by funding mental health programs. While the long-term impacts of sports betting are still uncertain, policymakers and regulators are called upon to find ways to protect consumers at risk of financial harm. With the expanding industry, it remains crucial to balance the economic benefits of sports betting with the potential negative impacts on consumers.

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