New Study: Legal Sports Betting Doesn't Show Negative Impact on Socioeconomic Factors

Many have rushed to criticize the growth of sports betting in the United States since a Supreme Court ruling in 2018 set the expansion in motion. One criticism has been that rampant legal sports betting will lead to more bankruptcies and financial ruin.

The validity of that theory is not certain following the results of a study that investigates the socioeconomic impacts of legalized sports betting in the U.S.

According to a study published the Progressive Policy Institute (PPI) this month, bankruptcy rates and financial scores in states with legal sports betting do not significantly differ from those states that do not have sports betting. The study, which can be found on the PPI website, covers data analyzed from 2019 to 2024.

The PPI study also found that consumer spending on sports betting has not increased at a higher rate than spending overall in the economy since 2019. This is a startling claim considering the massive increase in sports betting advertising across the country. Since 2018, more than 30 states have legalized sports betting and launched regulated sportsbooks.

Large states such as New York, Illinois, and Pennsylvania have legal online sports betting. So do many other states of varying populations, including Massachusetts, North Carolina, and West Virginia. Notably, two large states, California and Texas, have yet to legalize sports betting.

PPI is not a politically-funded organization. It's considered a fairly neutral organization, and it does not have any economic ties to sports betting.

Credit scores increased at higher rate in states with legal sports betting

In its report, the PPI explains that many experts have been concerned for the impacts of widespread sports betting. The report opens by saying "the legalization of mobile sports betting in many states has led to widespread worries about negative financial, social, and emotional impacts of easy access to sports gambling..."

Yet, according to the findings of the report, states that adopted legal sports betting early had a sharper decline in bankruptcies between 2019 and 2024 than states which didn't legalize sports betting or adopted it later. In addition, credit scores have actually increased slightly more in states which adopted sports betting early than in other states.

The study compares sports betting to other activities that are non-essential but for which many individuals spend on, such as lengthy vacations and cosmetic surgery. PPI explains that even though people often go into debt for such activities, "the government does not step in to control behavior" for those instances.

Some troubling information about sports betting

There are factors to keep an eye on, however. PPI points out that a survey conducted by U.S. News in July of 2025 showed that 16% of sports bettors admitted they worried that they may not be able to control their gambling. According to that same survey, 9% of respondents said they've taken the step to seek treatment for gambling addiction.

Economic impact of sports betting is staggering

The PPI report finds that the economic windfall of legalized gambling at large (an activity nearly 65 percent of Americans are in favor of) is well worth the relatively limited risks.

According to the study, in 2024 the total net spending on gambling was $207 billion. By comparison, PPI points out, Americans spent $160 billion on furniture.

As a result, PPI concluded that "gambling is an important economic category of spending."