The 2024 NFL season kicks off Thursday, Sept. 5, and it is expected to be the biggest year ever for legal sports betting in the U.S. The American Gaming Association (AGA) predicts $35 billion in legal wagers will be placed this season, up 30% from the 2023 season.
Five years ago, the Supreme Court ruled it was up to individual states whether to allow sports betting. It is now legal in 38 states and Washington, D.C., with more likely to follow.
More than 70 million Americans are expected to make sports bets in 2024. Companies like DraftKings and FanDuel do not keep track of how much is bet on each individual sport, but the AGA said more money is wagered on the NFL than any other league.
While the main argument for legalizing sports betting is that it makes it safer and increases tax revenue, new studies find it is not necessarily a complete jackpot.
One study found that in states with legal sports betting, a person’s chances of going bust significantly increase. Bankruptcy rates hit 25% to 30% within four years of betting legalization. The study also found collections of unpaid debt go up 8%.
Sports betting is especially detrimental for one group in particular. A separate study found betting losses are more common among young men in their early 20s from low-income counties. That same study also noted an increase in credit card debt and overdrafts.
Researchers also found allowing sports betting online or on mobile devices has a negative impact on nearly every financial health indicator they studied. They said nearly 90% of all legal sports betting is done online or via mobile device.
Researchers said a person does not have to have a clinically diagnosable gambling addiction for it to lead to financial ruin.
Still, more states are lining up to roll the dice on bettors, with plans to make sports betting legal. Additionally, some states where sports betting is already legal are looking to expand it further.