The overturning of the Professional and Amateur Sports Protection Act created uncertainty regarding innovation and risks associated with commercial gaming in the U.S.
The Progressive Policy Institute (PPI) explored the socioeconomic impacts of legalized sports betting in America through a study that identifies areas of risk and innovation in the industry. The PPI leveraged surveys and industry data from U.S. Federal Courts, the Bureau of Economic Analysis (BEA), the National Council on Problem Gambling (NCPG) and Sacred Heart to examine the socioeconomic impact of sports wagering.
The group is not affiliated with gambling. The think tank. is generally perceived as a centrist organization with a somewhat Democratic lean
“The Progressive Policy Institute has long focused on finding the appropriate balance between innovation and regulation,” said PPI Vice President Dr. Michael Mandel. “Innovation drives the economy forward and raises consumer welfare. Regulation protects individuals from risks that are too difficult or costly to avoid themselves.”
Consumer spending on sports betting in the US
The PPI investigated the impact of sports betting on GDP and the spending habits of U.S. consumers on legal gambling. The institute also examined the impact of sports wagering on consumer finances with bankruptcies and consumer credit scores being a large focus.
The abundance of gambling-related advertisements in the U.S. suggest significant growth of sports wagering but, despite the expansion of the vertical, overall spending on sports wagering has nearly grown at the same rate as overall consumer spending. According to data provided by the BEA, consumer spending on gambling in 2024 reached 1.04%. By comparison, consumer spending on gambling in 2017 closed at approximately 1.07%.
U.S. markets outside Nevada were permitted to offer sports wagering in 2018.
Meanwhile, the PPI suggests the mirroring results don’t paint a full picture of what gambling verticals are being impacted by sports betting. According to three NCPG surveys, the percentage of consumers who purchased lottery tickets and instant tickets and visited casinos declined in 2024 compared to 2018. The increased interest in sports betting was evident in 2024 when net spending on sports betting by Americans reached $13.7 billion.
By comparison, net spending on sports betting in 2019 was $920 million. The uptick is attributed to the legalization of online and mobile wagering in markets across the U.S.
The impact of betting on bankruptcies and credit scores
The PPI examined the risks of sports betting with consumer bankruptcies and credit score data detailing how legal sports betting impacts the personal finances of Americans.
Between 2019 and 2024, the PPI found few differences in consumer bankruptcies and credit scores between states that approved online sports betting and states that banned it.
According to the Federal Reserve Bank of New York, during an expansion of legal sports betting between 2019 and 2014, national consumer bankruptcy filings fell by 34%.
In Q1 2025, the filings nearly reached historic lows with the least filings in over 20 years.
The PPI also takes into consideration the early adopters of legalized online sports wagering, with New Jersey reporting a roughly 48.7% decline and West Virginia at a 43.9% drop.
The institute also found credit scores remained flat despite increased interest in wagering.
“For all states that implemented online sports betting through 2024, we find an average 1.7% increase in FICO scores, slightly below the national average,” added Mandel.
US consumers support sports betting
The results conclude that online sports wagering doesn’t have a substantial impact on consumer finances related to credit scores and bankruptcies. The industry is continuing to grow as Missouri plans to launch online wagering in December. Its growth is also being supported by U.S. consumers with a February 2025 national poll by Sacred Heart finding that 58.8% of respondents supported the legalization of sports betting in their states.
Only 22.4% of the respondents opposed sports wagering, while 18.8% were unsure.
The PPI’s findings compared to other industry studies
The PPI determined sports betting has little to no impact on the personal finances of Americans while competing research has found the opposite to be true.
A research paper co-authored by Scott Baker, an associate professor of finance at Northwestern University’s Kellogg School of Management, found that the legalization of sports betting has resulted in lower access to credit and higher credit card balances
The paper also identified an increase in lottery play behind the regulation of sports betting. Baker and his co-authors collected deposit and withdrawal data from online sportsbooks and transactions between equity brokerage accounts for their research.
In regard to bankruptcies and credit scores, 2024 research from UCLA professor Brett Hollenbeck found that legal sports betting states had a 28% uptick in bankruptcies.
The research also found debt transferred to debut collectors grew by 8%.
U.S. News & World Report published a July 2025 survey that had 25% of respondents admit to missing at least one bill payment due to sports wagering. The survey received responses from 1,200 bettors with 30% of them saying they have debt tied to wagering.
