In 2025, the Progressive Policy Institute (PPI) conducted a thorough analysis of the financial effects of online sports betting on individuals’ credit scores and bankruptcy rates from 2019 to 2024. Contrary to previous concerns raised by researchers over the past year, the PPI found no substantial correlation between the legalization of online sports gambling and an increase in personal bankruptcies or a decrease in credit scores.
The PPI’s study meticulously examined data from states like New Jersey, Pennsylvania, Michigan, and Illinois, among the earliest to legalize sports gambling. The findings revealed a surprising trend: a 40% reduction in personal bankruptcies in these early-adopter states compared to a 34% decline nationally, and a 36% decrease in states that embraced online sports gambling. Furthermore, credit scores in these states saw a modest rise of 1.8%, aligning with the national average, suggesting that the introduction of sports betting did not adversely affect financial health.
This analysis challenges prevailing assumptions and offers a new perspective on the impact of gambling on personal finances. While some might initially view the PPI’s research as favorable to the gambling industry, it provides a nuanced examination of the relationship between sports betting and financial stability.
The debate over sports betting’s financial impacts has been fueled by conflicting studies. A previous survey by the University of California, Los Angeles (UCLA) and the University of Southern California (USC) claimed that online sports betting was linked to declining credit scores and increased bankruptcies. However, the PPI points out that this research took place during a particularly volatile period marked by economic disruptions such as inflation spikes and the coronavirus pandemic.
The PPI highlighted that data from the National Council on Problem Gambling (NCPG) indicated an increase in sports betting during the pandemic, followed by a decline as normalcy returned. This fluctuation in betting activity is crucial for understanding the broader context of the financial impacts observed.
In early adopter states, the trend of fewer consumer bankruptcies could also be attributed to stronger financial literacy and regulatory frameworks. While both the PPI and previous studies focus on data potentially linked to sports betting, they do not capture the complete picture of its financial implications.
There have, however, been anecdotal reports of individuals liquidating investment accounts to sustain their sports betting activities. Such instances might represent outliers rather than a general trend, as not all gamblers face severe financial distress due to betting.
Critics argue that the PPI’s findings overlook the potential for gambling addiction to lead to financial ruin for vulnerable individuals. These voices stress the importance of recognizing problem gambling as a significant issue that could still lead some to financial hardship regardless of overall trends.
“It’s important to consider that while data suggests a neutral or even positive financial trend in some areas, individual experiences can vary greatly,” the discourse around the study continues, emphasizing the multifaceted nature of gambling’s impact.
The counterpoint presented by critics focuses on the necessity of robust support systems and education to prevent gambling-related financial problems. They argue that statistics should not overshadow the real struggles faced by a subset of gamblers who might not have the resources or knowledge to manage their betting habits responsibly.
The debate over the financial consequences of online sports gambling remains complex, with researchers, policymakers, and advocates all weighing in on the issue. While the PPI’s study provides a significant data-driven perspective, it underscores the diverse factors influencing financial outcomes in the context of legalized gambling.
As the gambling industry continues to evolve, these findings may inform future legislation and initiatives aimed at promoting responsible gambling practices. Both proponents and critics agree on the importance of monitoring the industry’s impact on personal and economic health, ensuring that benefits are maximized, and potential harms are mitigated.
In conclusion, the PPI’s research presents a critical reassessment of the assumed economic dangers of sports betting, highlighting the need for ongoing scrutiny and dialogue. As more states consider legalizing online sports gambling, understanding its varied effects remains essential for making informed policy decisions that protect and benefit the public.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
