Online Sports Betting Linked to Lower Household Savings

A University of Nebraska-Lincoln study finds legalized online sports betting significantly reduces savings, with the greatest impact on households that already had limited savings.

Updated on Nov. 4, 2026 in Gambling

Online Sports Betting Linked to Lower Household Savings

Live Poll

Do you think sports betting leaves households with less savings for retirement?

University of Nebraska-Lincoln researcher Justin Balthrop published a study in the Journal of Financial Economics finding that legalized online sports betting reduces household savings. The study analyzed financial transactions from 183,821 U.S. households across 26 states that legalized online sports betting.

Why it matters

Legalized online sports betting increases the number of participants and how often they bet, and households with limited savings experienced the greatest financial consequences. The findings add evidence to the debate over the financial effects of expanding sports betting across the United States.

The study analyzed financial transactions from 183,821 U.S. households in 26 states that legalized online sports betting, comparing activity before and after legalization. Frequent bettors tended to have lower incomes, smaller investments, and higher credit card debt than infrequent bettors and non-bettors, but the extraction does not report the magnitude of the savings decline.

The players

Justin Balthrop

Balthrop is an assistant professor of finance at the University of Nebraska-Lincoln who spent nearly two decades in quantitative investment management before entering academia.

University of Nebraska-Lincoln

The University of Nebraska-Lincoln is a public research university in Lincoln, Nebraska, where Balthrop conducted the study.

The details

The study compared financial transactions before and after the legalization of online sports betting in each state. According to the research, online sports betting does not displace other gambling or consumption, and the effects on savings were concentrated among households with limited savings.

Study findings published in the Journal of Financial Economics on November 4, 2026.

Market Landscape

The findings come as states continue to legalize online sports betting in the wake of the 2018 Supreme Court decision in Murphy v. NCAA, which opened the door to state-by-state legalization. The study measures the household financial consequences of that expansion across 26 states that have adopted online sports betting.

Households with limited savings may face the greatest financial strain from online sports betting, according to the study's findings. Readers who bet frequently should be aware that the research links frequent betting to lower incomes, smaller investments, and higher credit card debt.

The takeaway

Monitoring savings and credit card balances can help households guard against the financial strain the study associates with frequent sports betting. Limiting how often and how much is wagered may protect the savings cushion that the research shows is most at risk.