A Federal Reserve Bank of New York study has found a direct link between legal sports betting and rising credit delinquencies, with Americans under age 40 suffering the sharpest financial damage as smartphone gambling apps spread across more than 30 US states.
The research by NY Fed economists Jacob Goss and Daniel Mangrum found that credit delinquency rates rose about 0.3% overall in states where sports betting is legal. But among the roughly 3% of the population who took up betting after their state made it legal, delinquencies spiked by more than 10%.
The sharpest increases were driven by those under 40 years old, Liberty Street Economics the study found.
‘Our findings suggest that sports betting can have dramatic implications for…