Online sports betting is significantly impacting the finances of millions of gamblers, with a new study revealing that one in nine bettors are problem gamblers who spend half of their quarterly retirement savings on wagers. The research indicates a concerning trend where these individuals, often from lower-income households, are treating betting as an alternative to saving for the future.
The study, which analyzed financial transaction data from 184,000 households, found that approximately 11% of online sports bettors exhibit problem gambling behaviors. These bettors are more likely to be from lower-income households and spend 5% or more of their monthly income on sports betting, in addition to other spending on entertainment or lotto tickets.
Researchers observed a negative correlation between money spent on sports betting and contributions to 401(k) or other investment accounts. Frequent bettors reduced their deposits to brokerage accounts by about $220 per quarter, representing a roughly 50% cut in their investments compared to their pre-legalization habits.
Since the Supreme Court's 2018 decision to strike down the federal ban on sports gambling, the US market has seen explosive growth. Wagers increased from $57.6 billion to $167 billion between 2021 and 2025. Online and mobile betting are now legal in 30 states and Washington D.C., with nine additional states allowing gambling in physical locations.
While proponents highlight the crucial tax revenue generated, with states collecting $3.7 billion in 2025 alone, the study's co-author Jason Kotter of Brigham Young University's Marriott School of Business expressed concern. "I think we will look back and shake our heads a bit and wonder at how we were willing to just open the floodgates," Kotter said.
Kotter noted that while the majority of bettors manage their habits responsibly, a small segment is jeopardizing their financial futures. The study also pointed to broader social harms associated with problem gambling, citing other research that shows increases in bankruptcies, credit card delinquencies, domestic partner violence, and child maltreatment.
Public opinion on legal sports betting appears to be shifting. A 2025 Pew Research Center survey indicated that 43% of US adults believe legal sports betting is detrimental to society, an increase from 34% in 2022. In response, lawmakers are considering measures such as advertising bans, prohibiting college player prop bets, banning credit card use for betting, and establishing federal standards to address the current patchwork of state laws.