But Maloney is skeptical of the idea that sports gambling harms household finances. He noted that Americans last year had record 401(k) holdings and record mutual fund ownership.

Maloney highlighted a separate piece of recent academic research that determined the rapid rise of sports betting hasn’t led to an increase in adverse mental health outcomes or financial difficulties. The paper examined self-reported data on mental and financial health from nearly 2 million survey responses across multiple states with legalized betting.

The results were somewhat surprising to lead researcher Timothy Bersak, an associate professor of economics at Wofford College in South Carolina. He said the findings contradict a popular narrative that sports betting leads to widespread harms.

“Our results suggest that there’s not like a really large population of latent problem gamblers that would have these large gambling problems but for the prohibition on sports betting,” he said.

Bersak said his findings don’t negate other recent research: There is a segment of the population that is likely worse off because of sports betting, he said. But for now, a much larger share of the population said they are not being hurt and finding enjoyment from it.

“We really can’t have any sense of the long-term impacts at this point,” he said. “Because at least in the U.S., it’s only been around for at most six years.”

‘That money’s gone’

Justin Balthrop, an assistant professor of finance at the University of Kansas, expected that legalized sports gambling would displace other forms of entertainment spending. Maybe someone would forgo a night out, for instance, and instead put a few bucks on Sunday’s game.

But a paper he co-wrote — titled “Gambling Away Stability” — found that legalized betting led households to spend more on both entertainment and betting, while putting less in savings and investment accounts.

The paper examined financial transaction data from more than 230,000 households across 26 states with legal sports betting between 2018 and 2023. In households that placed bets, net investments dropped by 14% after legalization — a significant figure when factoring in the expected long-term gains of compound interest and rising stock prices.

“What’s happening is they’re pulling money from what I think we would argue are more long-term productive uses of their funds to do this instead,” Balthrop said.

Researchers found that sports betting disproportionately hurts lower-income households as they run up credit card debt and overdraft checking accounts.

Balthrop said policymakers should do more to provide education and transparency to consumers, so they know the full extent of the odds against them.

A gambler himself, Balthrop said bettors should go into every bet financially and mentally prepared to lose because most bettors don’t win.

“I would say the same thing as someone who goes to a casino: Pretend that the hundred bucks you’re bringing to the casino is an entry fee, and maybe you get to leave with some of it,” he said. “But you need to mentally know that money’s gone.”

West Virginia state Sen. Jason Barrett, a Republican, said he believes most people who have placed bets since the state legalized sports gambling in 2018 have done so for fun — not with the expectation of making money.

“The way I look at it is, if somebody decides that they’d rather spend $50 on the outcome of an NFL game as opposed to going out to the movies, I think they should have the right to do that,” he said. “I’m not aware that there are a lot of people that are doing this for a real investment.”

Barrett, the treasurer of a national group of state lawmakers that works on gambling issues, noted that sports betting is still just a fraction of the overall spending on gambling in West Virginia. The American Gaming Association reported sports betting last year brought in about $48 million in revenue in West Virginia; total casino revenues in the state reached nearly $806 million.

While problem betting is always a concern, he said he’s seen no evidence sports gambling has dramatically increased addiction.

“I don’t think all of a sudden that we’ve offered one new product through sports betting, that all of a sudden we’re going to create a bunch of gambling addicts,” he said, “or that people have this illusion that they’re somehow going to regularly beat the book, and that this is going to somehow replace their retirement.”

The American Gaming Association reported that commercial gambling revenues hit a record $66.66 billion last year — a 10.3% increase over 2022.

While casino revenues continue to rise, sports gaming revenues are exploding: Last year, when sports betting became available in five new states, the group reported a total of $11 billion in sports betting revenue — a 46% increase from the previous year. That figure does not include sportsbooks operating at tribal casinos.

Those figures will likely continue to rise as more states approve sports betting.

Missouri regulators are currently crafting rules and a licensing framework for sports betting following the narrow approval of the ballot initiative last month.

Jan Zimmerman, chair of the Missouri Gaming Commission, said the state hopes to launch sports betting by summer. While the agency has heard concerns from state residents about increased problem gambling associated with sports betting, Zimmerman said regulators in other states have not reported a significant uptick.

As it does with casinos, the gaming commission will funnel a portion of sports betting revenues to mental health work to address problem gambling. But because the initiative was passed as an amendment to the state constitution, the gaming commission has limited latitude to create new regulations or safeguards on sports betting.

“The constitutional language is that which was created by that initiative petition,” she said. “So, there’s no going back and maybe molding that to work better to fit our needs.”