No Sports Betting Won’t Bankrupt You or Tank Your Credit Score, Survey Says
Summary
The Progressive Policy Institute (PPI) analysed credit and bankruptcy data from 2019 to 2024 for states that adopted online sports betting early (eg. New Jersey, Pennsylvania, Michigan, Illinois). It found no significant rise in personal bankruptcies or widespread drops in credit scores linked to legalised online sports wagering. In fact, early-adopter states saw a larger decline in bankruptcies (around 40%) compared with the national average (34%), and credit scores in those states rose by about 1.8%, roughly matching the national trend.
The PPI contrasts its findings with earlier research from UCLA and USC that suggested sports betting harmed credit health, noting that the earlier studies covered volatile periods (pandemic, inflation spikes) that could confound results. The PPI also references National Council on Problem Gambling data showing betting intensity rose during the pandemic and later fell. The article notes isolated reports of bettors liquidating investments to cover losses but treats these as exceptions rather than evidence of a systemic problem.
Key Points
- PPI reviewed data from 2019–2024 and found no clear link between legal online sports betting and higher personal bankruptcy rates.
- Early-adopter states recorded a ~40% decline in bankruptcies versus ~34% nationally over the period analysed.
- Credit scores in early-adopter sports betting states increased by about 1.8%, in line with national movements.
- PPI highlights methodological issues in prior studies (UCLA/USC), pointing to pandemic and inflation as potential confounders.
- Problem gambling spikes were noted during the pandemic, but betting intensity has reportedly decreased since reopening.
- There are anecdotal cases of gamblers selling investments to fund betting, but these appear to be exceptions rather than the rule.
Why should I read this?
If you keep hearing that sports betting will wreck everyone’s finances — take a breath. This piece cuts through conflicting studies and shows a major policy think-tank didn’t find the doom-and-gloom many feared. Quick read, saves you time worrying and helps you spot when headlines overstate one study’s findings.