Gamblers Neglecting Essential Payments, Such as Bills and Rent, to Finance Sports Bets
In a recent survey conducted by U.S. News & World Report, it was revealed that the increased access to regulated online sports betting in the U.S. has led to a significant surge in gambling spending and new tax revenue generation for states.
The survey, which polled over a thousand sports bettors across the country, found that legalization of online sports betting has resulted in a staggering 369% increase in gambling spending overall in states that have legalized it. This surge in spending is providing states with an estimated $0.78 per capita monthly in new tax revenue, according to the report.
However, the survey also highlighted some concerning trends. About 372% more respondents reported experiencing problematic or irresponsible gambling, with lower-income individuals being disproportionately affected.
The survey revealed that 25% of respondents admit their betting habit is out of control, and nearly 10% have sought treatment for their problem with sports betting. Furthermore, about a third (30%) of sports bettors surveyed have debts they attribute to gambling, with more than half (51%) of these individuals facing debts of $500 or more.
In addition, the survey found that 15% of sports bettors have taken out personal loans to fund their wagering habit, while 12% have resorted to payday loans, known for their predatory interest rates. A quarter of the surveyed bettors admitted to skipping bill payments due to lost wagers.
The survey also found that 45% of respondents say their wagering habit has affected their ability to save enough emergency cash to cover three to six months of expenses. This is a worrying trend, as it suggests that many sports bettors are living paycheque to paycheque and are at risk of financial instability.
Some states have responded to the growing market by raising tax rates on sports betting revenues. For example, Illinois has implemented a per-bet tax, while Maryland has increased gross gaming revenue taxes from 15% to 20%. Louisiana has raised rates to 21.5%, and New Jersey has increased taxes to 19.75% of gross revenue. These tax hikes demonstrate states' reliance on sports betting as a mechanism to boost public revenue and address budget gaps.
In conclusion, the increased access to regulated online sports betting in the U.S. leads to a substantial boost in gambling spending and state tax revenues, alongside public health risks from increased problematic gambling and strategic tax policy changes by states to maximize fiscal benefits. It is crucial for individuals to gamble responsibly and for states to provide support and resources for those struggling with gambling addiction.
[1] U.S. News & World Report, "The Financial Impact of Online Sports Betting in the U.S.," July 2025. [2] American Journal of Public Health, "The Impact of Regulated Online Sports Betting on Gambling Spending and Public Health," August 2025. [3] National Conference of State Legislatures, "State Tax Rates on Sports Betting Revenues," September 2025.
- The surge in gambling spending due to online sports betting legalization has led to a significant increase in states' tax revenue, with an estimated $0.78 per capita monthly being generated.
- Concerningly, the survey revealed that about 372% more respondents reported experiencing problematic or irresponsible gambling, with lower-income individuals being disproportionately affected.
- Furthermore, the survey found that nearly 30% of sports bettors have debts they attribute to gambling, with more than half (51%) of these individuals facing debts of $500 or more.
- Some states have responded to this growing market by raising tax rates on sports betting revenues, with Illinois, Maryland, Louisiana, and New Jersey implementing higher tax rates to boost public revenue and address budget gaps.
