A new study by researchers at BYU, Kansas, and Northwestern has linked sports betting to significant long-term financial consequences. The study analyzed credit and debit card transaction data from 2010 to September 2023 and found that an increase in sports betting is associated with a decrease in long-term financial planning. This trend is particularly pronounced among individuals who are already prone to riskier financial behaviors.

The study’s findings suggest that people are diverting funds from long-term investments to spend more in the present, leading to increased financial instability and higher credit card balances. The researchers also noted that these effects are more pronounced among “financially constrained” and “vulnerable” households. The study concludes that sports betting not only increases betting activity but also leads to higher credit card balances, less available credit, reduced net investments, and increased lottery play.

The study’s implications are far-reaching, highlighting the need for policymakers to consider the financial risks associated with sports betting, especially for those who are already struggling financially. The findings also underscore the importance of promoting long-term financial planning and reducing financial fragility among individuals who engage in sports betting.