PPI Report Finds That Socioeconomic Impact of Legalized Sports Betting is Less Harmful Than Feared

Submitted by C Costigan on

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C Costigan

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WASHINGTON — Last weekend marked the beginning of the 2025 NFL season. In many states, Americans will be able to bet on all the games using legalized sportsbooks.

Today, the Progressive Policy Institute (PPI) released a new report arguing that while legalized sports betting has surged, it has not produced the widespread financial fallout that critics feared. Authored by PPI Vice President and Chief Economist Michael Mandel, “Balancing Innovation and Risk: The Case of Legalized Sports Betting,” shows that credit scores and consumer bankruptcies have been in line with the national average or improved in states where legalized sports betting is permitted.

“Problem gambling is real, and policymakers must ensure resources and safeguards are in place,” said Mandel. “However, the data shows that for most people, sports gambling in general hasn’t caused systemic financial harm — instead, it’s boosting the economy and providing another form of entertainment for people.”

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Key findings include:

  • Early adopter states of mobile sports betting saw a 40% decline in consumer bankruptcies (2019–2024), compared to a 34% national decline.
  • Average credit scores for states with legal sports gambling rose about 1.8% from 2019 to 2024, in line with national trends.
  • Sports betting directly added $12.4 billion to GDP growth, in 2019 dollars, between 2019 and 2024.
  • Overall spending on gambling has stayed flat as a share of consumer spending.
Mandel stressed that while responsible, legalized gambling can both educate Americans about risk and stimulate economic growth, stronger measures are needed to guard against addiction and unsafe practices. He called for pragmatic safeguards — such as closing education gaps and ensuring accessible support services for those affected by gambling disorders — to promote innovation in the industry while protecting consumers.

“Sports betting is best understood as part of a broader trend in discretionary, experience-based spending — like travel, live entertainment, or cosmetic procedures,” said Mandel. “Betting has become more of an experience that people get more enjoyment out of rather than other material goods.”

Read and download the report here.

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