By Scott R. Baker,  Justin Balthrop,  Mark J. Johnson,  Jason Kotter,  Kevin Pisciotta 

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 the 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 financially constrained households, as credit card debt increases, available credit decreases, and overdraft frequency rises. Our findings highlight the potential adverse effects of online sports betting on vulnerable households.  

Unpublished paper, 2024.

MAY CONTAIN MARKUP

BY JOHN ASHTON

Introductory: “Difference between Gaming and Gambling-Universality and Antiquity of Gambling-Isis and Osiris-Games and Dice of the Egyptians-China and India-The Jews-Among the Greeks ancl Romans-Among Mahometans Early DicingDicing in England in the r3th and 14th Centuries--In the r7th Century-Celebrated Gamblers-Bourchier-Swiss Anecdote Dicing in the 18th Century.”

LONDON. DUCKWORTH & CO. 3 HENRIETTA STREET, COVENT GARDEN, W.C. 1898. 297p.