Chris O'Shea
A new report from the National Bureau of Economic Research has found something that may seem fairly obvious: Sports gambling isn’t good for your wallet.
“Detrimental Financial Activity”
The study explained that for the average American, sports betting is a “detrimental financial activity.” The obvious downside of gambling is that you rarely win. “The house always wins” is a saying for a reason. But the downside of sports gambling extends beyond just losing money on the bets themselves.
Poor Financial Behavior
The report found that some of the negative aspects of sports bettors include:
- Higher credit card debt
- Lower available credit
- Lower investment savings balances
These bets also impact people who are on a tight budget more than those who are not. The report showed that bettors who were on a tight budget had credit card balances about eight percent higher than bettors who were not on a tight budget.
Debts to Pay for Bets
The report also found that sports bettors aren’t only using discretionary funds for their bets. Instead, they sometimes will use credit cards or even household savings accounts. Bettors also reduce their investment contributions and use that money on bets. The study found that investments in states where sports betting is legal are 14 percent lower than in states where sports betting is still illegal.
Sports betting should be done in moderation, especially if you are on a tight budget. It is not a way to make money it’s quite the opposite. If you’re having gambling issues, consider seeking help via one of the many gambling help centers.
Do One Thing: Remove sports gambling apps from your phone so that it makes it harder to place bets.
Jean Chatzky
