Betting on Debt: Online Sports Wagering Linked to Financial Woes

Online sports betting, now legal in more than 30 U.S. states, is facing scrutiny for its potential impact on Americans' financial well-being. A recent study by the Federal Reserve Bank of New York has indicated a correlation between engaging in online sports wagering and increased rates of consumer credit delinquency.

The study utilized data from the New York Fed's Consumer Credit Panel, comparing credit outcomes in states where online sports betting is legal versus those where it is not. Researchers found that following legalization, delinquency rates (defined as 90 days past due on any credit product) saw a 0.3 percentage point increase across the general population. More significantly, for the approximate 3% of the population that began sports betting after legalization, delinquencies rose by an estimated 10 percentage points.

This trend suggests that online betting activity could pose a substantial risk, potentially leading to economically meaningful effects and lasting consequences for borrowers' credit profiles. The average quarterly deposit for online sports betting has also surged, reaching $1,250 in 2025, a considerable increase from around $500 just five years prior, indicating a growing financial commitment from bettors.