Keywords
sports betting, gambling, household finance, stock market participation
Abstract
We estimate the causal effect of online sports betting on households’ investment, spending, and debt management decisions using household transaction data and a staggered difference-in-differences framework. Following legalization, sports betting spreads quickly, with both the number of participants and frequency of bets increasing over time. This increase does not displace other gambling or consumption but significantly reduces savings, as risky bets crowd out positive expected value investments. These effects concentrate among frequent bettors and low-savings households. Our findings highlight the potential adverse effects of online sports betting on vulnerable households.
Original Publication Citation
Gambling Away Stability: Sports Betting’s Impact on Vulnerable Households (with Scott Baker, Justin Balthrum, Jason Kotter, and Kevin Pisciotta )
BYU ScholarsArchive Citation
Baker, Scott R.; Balthrop, Justin; Johnson, Mark J.; Kotter, Jason; and Pisciotta, Kevin, "Gambling Away Stability: Sports Betting’s Impact on Vulnerable H" (2026). Faculty Publications. 9240.
https://scholarsarchive.byu.edu/facpub/9240
Document Type
Working Paper
Publication Date
2026
Language
English
College
Marriott School of Business
Department
Finance
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