In 2018, the US Supreme Court abolished the federal sports betting ban. Many states legalized sports betting soon after. So what has been the impact of sports betting legalization on household finances - did it impact saving or did it shift consumption around.
The authors find that:
1.The legalization of sports betting has led to a reduction in net investment, with a $1 increase in sports betting reducing net investment by $0.99. This effect is more pronounced for low-saving households, where a $1 increase in sports betting reduces net investment by $3 ((this additional drop in savings can be driven by the fact that bettors increase other entertainment expenditures such as watching the games).
2. This increased amount is usually funded at the expense of 'traditional brokerages'
3.The legalization of sports betting has also increased participation in lotteries, but not in online poker, suggesting that not all gambling activities are treated the same.
Interestingly, the introduction of Prize-Linked Savings Accounts could mitigate some of the increase in sports betting, as it has reduced the use of casinos.
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[ 4.7 ms ] story [ 14.8 ms ] threadThe authors find that: 1.The legalization of sports betting has led to a reduction in net investment, with a $1 increase in sports betting reducing net investment by $0.99. This effect is more pronounced for low-saving households, where a $1 increase in sports betting reduces net investment by $3 ((this additional drop in savings can be driven by the fact that bettors increase other entertainment expenditures such as watching the games).
2. This increased amount is usually funded at the expense of 'traditional brokerages'
3.The legalization of sports betting has also increased participation in lotteries, but not in online poker, suggesting that not all gambling activities are treated the same.
Interestingly, the introduction of Prize-Linked Savings Accounts could mitigate some of the increase in sports betting, as it has reduced the use of casinos.
To read more on this paper and others on the topic of gambling and investment - https://www.nominalnews.com/p/sports-betting-investments-cos...