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What are the risks of online sports betting?

Umito November 6, 2024

If you’re a big enough fan, you can find a sport to watch at any time of year. Yet it’s a particularly good time for sport right now, with football season ramping up and hockey just starting. All this excitement may tempt you to bet on what will happen, but is that really a good idea?

If you’ve ever invested in a particular team, you’re not alone. Now that online sports betting is “legal in 30 states, plus the District of Columbia and Puerto Rico,” it is estimated that “total monthly wagering has increased from an average of $1.1 billion per month in 2019 to $14 billion in January 2024,” said NBC News. That’s a big increase.

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Less investment: On the one hand, betting more could mean investing less. “As major indexes continue to hit all-time highs and a record share of Americans now own stocks, a growing number of investors appear to be leaving the market in favor of sports betting,” said Money. In fact, a July study led by Scott Baker, an associate professor of finance at Northwestern University, found that “households increased their bets by $1,100 per year while simultaneously decreasing their investments by 14 percent when states legalized sports betting.

The researchers also discovered this legalization “led to higher credit card balances” and “poor access to credit,” NBC News said. Another study found that “compared to states that did not implement sports gambling, states that did saw their credit scores drop by a statistically significant, albeit modest, amount.” while bankruptcies increased by 28% and debts transferred to debt collectors climbed by 8%.”

Impacts on general well-being: To top it all off, a recent public health commission report on gambling concluded that “the rise of online gambling has led the commercial gambling industry to explode worldwide, posing a significant threat to public health,” said NBC News. “Beyond financial losses, gambling can lead people to lose jobs, relationships or health and increase the risks of suicide and domestic violence,” the report said. “Even people who are not considered to have a gaming disorder experience the consequences.”

If you like sports betting – perhaps to stay in touch with friends or participate in the office – here’s some good news: East “It is possible for some people to enjoy sports betting in moderation, as long as they set healthy limits,” said Nerd Walletciting certified financial planners Frank Paré and Chris Woods. Keep in mind, however, “that some people may find themselves unable to control the risks associated with their sports betting behavior.” You know yourself best.

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