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A new study discussed in a KUTV report says legalized online sports betting is associated with lower long-term savings for some U.S. households, with the heaviest bettors seeing the sharpest effects.
According to the report, researchers from Brigham Young University, the University of Wisconsin-Madison, and the University of Kansas analyzed financial transaction data from more than 183,000 households in the U.S. The study found that once online sports betting becomes legal, betting activity rises over time.
One of the clearest findings involved a smaller group of frequent or high-spending bettors. Study author Jason Cutter said some bettors spend about 5% of their income on betting. “For these bettors, they’re cutting savings by about 50%,” Cutter said.
The report said the money used for betting was not mainly coming from entertainment budgets. Instead, Cutter said it was “specifically money that’s coming out of long-term savings,” including savings and investment accounts.
Researchers also found signs of added financial strain for some households with fewer savings. The KUTV segment said those households were more likely to take on new debt, including higher credit card balances and fintech loans. At the same time, spending on restaurants, sports bars, cable packages, and alcohol also increased alongside betting activity.
The report briefly touched on prediction markets, noting that the study did not examine them. Cutter said future research may look at that area, adding that about 90% of contracts on platforms such as Kalshi and Polymarket are tied to sporting events.
For readers following online sports betting policy, the study adds to the consumer-protection side of the debate. The TV report did not provide full methodology details or identify a journal publication, so the underlying research may warrant closer review as more information becomes available.
If you bet on sports, the practical takeaway is straightforward: track spending carefully and treat gambling as discretionary entertainment, not as part of a savings or investment plan.
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Source: As reported by KUTV 2 News Salt Lake City.
