Over the weekend, millions of Americans tuned into football games, eating, cheering, and increasingly betting. Sports gambling is everywhere now: It appears on TV ads, in online promotions, and even within stadiums. The American Gaming Association estimates that bets totaling around $35 billion will be placed on NFL games in 2024 alone.

You bet! It is a staggering figure, almost a third higher than last year’s total. But sports gambling is not just entertainment. It has become a major industry with impacts that reach well beyond the games.

The Explosion of Legal Sports Gambling in the U.S.

Silver / Pexels / Just six years ago, in 2018, sports gambling was illegal in nearly every state.

If you follow sports, you must have likely noticed the rise of sports gambling advertisements. Once rare, they are now as common as ads for drinks and snacks. More than one in three Americans places bets on sports, according to a recent Seton Hall poll, a statistic that would have seemed impossible a decade ago.

Fast forward to 2024, it is now legal in 38 states plus Washington, D.C., and it is bringing in around $10 billion in revenue annually.

The Financial Cost of Betting on Games

Studies show that legal sports gambling has real economic impacts, especially on individual finances. A recent study by Northwestern University professor Scott Baker and his colleagues found that sports gambling is often linked with decreased savings. Their research revealed that for every dollar spent on betting, households cut back on other forms of savings by about two dollars.

That is a heavy trade-off. When sports gambling rises, so does the likelihood that people overdraft their bank accounts or max out their credit cards.

These financial strains are especially pronounced among households that already have limited financial stability. For families on a tight budget, the temptation to win big through sports gambling can be difficult to resist. Even though the risks are high. Unfortunately, gambling losses can mount quickly. It is turning what began as a thrilling game of chance into a financial burden that is hard to escape.

Young Men and the Risks of Online Betting Is On the Rise

Dre / Pexels / New research indicates that in states where online betting became legal, households faced a 25-30% higher risk of bankruptcy and debt delinquency.

Another study highlights a trend specifically related to online sports gambling. Economists Brett Hollenbeck of UCLA and Poets Larsen and Davide Proserpio from the University of Southern California found that online sports gambling legalization correlates with increased financial distress.

So, who is most affected? The data points to young men, especially those living in lower-income areas. These young men, often already facing financial pressures, are drawn to the allure of sports gambling as a way to make quick money. However, as the studies show, the odds are rarely in favor of the gambler, and the losses can add up fast.

How Sports Betting Affects Families and Communities?

Sports gambling is not just a personal decision. It is a community issue. The effects of increased gambling activity ripple outward. Thus, impacting families and communities. A win can feel exhilarating. But for those facing losses, the pressure can strain relationships. Financial stress has long been linked to family tension. Unfortunately, sports gambling introduces a new layer to that challenge.

For households where one member is heavily involved in betting, others may face stress from managing budgets or covering unexpected expenses due to gambling losses.

Above all, communities as a whole feel the impact. As households struggle with financial setbacks from gambling, local economies can suffer, too. The reliance on sports gambling as a source of state revenue may be beneficial. However, it can also mean that some of the same funds generated by gambling taxes are needed to support social programs for financially distressed individuals and families.