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Gambling Away Stability: Sports Bettingâs Impact on Vulnerable Households / Scott R. Baker, Justin Balthrop, Mark J. Johnson, Jason D. Kotter, Kevin Pisciotta.
- Format:
- Book
- Author/Creator:
- Baker, Scott R.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w33108.
- NBER working paper series no. w33108
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2024.
- Summary:
- 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 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.
- Notes:
- November 2024.
- Print version record
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