As March Madness nears its peak, sports betting is gaining momentum as well — but new research shows the toll it takes on many households’ financial stability.
Sports fans will bet about $3.3 billion through legal means on this year’s NCAA men’s and women’s basketball tournaments alone, according to an estimate from the American Gaming Association — a 54% jump over the past three years.
However, as more states have legalized mobile sports betting, leading to broader participation, consumer credit health has suffered, a new report by the Federal Reserve Bank of New York found.
In its report, the New York Fed warned of a “noticeable deterioration in repayment performance” in certain parts of the country with legalized sports betting, as well as “spillover effects” to nearby areas where it’s still not legal.
“Following the legalization of sports betting in a state, credit delinquencies increase, driven by those under 40 years old,” the report said.
