Increased availability of regulated online sports betting in the US has a financial cost, and a recent survey highlights how unpleasant things may be for certain wagerers.
According to a recent U.S. News & World Report survey, 25% of bettors had avoided paying a bill because they were short on funds as a result of losing bets. Some respondents even went so far as to declare that paying rent is one of the responsibilities they have abandoned. In other instances, they're endangering their credit scores and financial circumstances much more.
"Almost a third (30%) of sports bettors say they have debts they attribute to gambling. Of those with debts related to sports betting, more than half (51%) are facing debts of $500 or more,” according to the study, which was conducted earlier this month in conjunction with PureSpectrum.
A survey of 1200 sports bettors in the United States was conducted. They all claimed to have wagered on sports in the previous six months.
Bad Situations Are Made Worse by Bettors
The fact that so few sports bettors win in the long run proves that the odds are stacked against beginners, especially when they don't use sound money management strategies. Many don't seem to be doing that.
Even worse, some are making already bad circumstances worse. According to a U.S. News survey, 15% of sports gamblers have borrowed money for their betting habit, with 12% obtaining payday loans—which are notorious for having exorbitant interest rates.
This is consistent with research conducted last year by the University of California Los Angeles (UCLA) and the University of Southern California (USC), which found that consumer bankruptcy filings were on the rise and credit scores were declining in states where online sports betting is legal.
Losing wagerers are also making their own financial situations worse by accruing credit card debt, among other things. According to U.S. News, 52% of respondents said they maintain monthly amounts on their cards. This situation is made worse by the fact that many people are probably unaware that card issuers treat transactions with online sportsbooks as cash advances rather than regular purchases, which results in higher interest rates.
Another 45% claim that their propensity for gambling has impacted their capacity to accumulate emergency funds sufficient to cover three to six months' worth of costs. That serves as just another reminder of evidence showing that some gamblers sell investments to support their bad habits, among other unwise choices.
More Negativity in Sports Gambling
The rise in bettors publicly insulting sportsmen at games or on social media as a result of losing wagers is another drawback that has coincided with the growth of sports betting in the US. Some have even gone so far as to threaten players' lives or call out their families. Even worse, these offenses are being committed by adults.
"21% of sports bettors say they’ve verbally abused an athlete, either in person or online, after losing money on a bet. More than a quarter of respondents between the ages of 35 and 44 say they’ve lashed out at an athlete over a wager, the highest rate of any age group in the survey,” according to U.S. News.
Additionally, according to the report, roughly 10% of participants have sought treatment for their addiction, and 25% of respondents acknowledge that their betting habit is out of control. That's all for comparatively tiny stakes. Approximately 75% of those surveyed bet less than $500 a month