Sports Betting Across Borders: Spatial Spillovers, Credit Distress, and Fiscal Externalities

Quantitative Data

General

• 1% increase in people using online sportsbooks after legalization (from ~0.6% to 3.7%).
• 900% increase in total sportsbook spending following legalization (roughly tenfold).
• $40 per person per quarter average sportsbook spending after legalization (long-run level).
• 1% increase in quarterly sportsbook deposit participation (near-zero baseline).
• 10%–15% of adults report betting at an online sportsbook in the past year.
• 31 percentage point increase in overall delinquency in the full population.
• ~97% of the population doesnot participate in betting (limiting average population harm).
• Data from Spillover Areas (area just outside the New York State boarder).
  • 132% increase in total sportsbook spending in spillover areas.
  • 18 percentage point increase in delinquency in spillover areas.
  • 4 percentage point increase in sportsbook participation in spillover areas (locations just outside the New York State boarder).
  • $5 per person per quarter average spending in spillover areas.

Demographics

• 67% of bettors are age 44 or younger, indicating concentration among younger adults.
• 48% of men ages 18–49 report having an online sportsbook account.
• 02 percentage point increase in credit card delinquencies among adults under 40.
• 55 percentage point increase in auto loan delinquencies among adults under 40.
• 78 percentage point increase in auto loan delinquencies (spillover) for under 40.
• 25 percentage point increase in credit card delinquencies (spillover) for under 40.

Financial

• 51 percentage point increasein auto loan delinquencies among adults ages 40–64.
• ~3% of population drives most of the financial impact.

Policy

• 1% increase in participation, showing strong policy-driven behavioral change following legalization.
• Data from Spillover Areas
  • 4 percentage point increase in participation from spillover areas effects (showing that legalization impacts neighboring states).

Qualitative Data

Policy

• Policy effects extend beyond borders, affecting both legal and non-legal states.
• States near legal neighbors experience measurable financial harm even without legalization.

Gender

• Gambling participation is concentrated among men and younger individuals.

Finance

• Individuals under 40) showlarger increases in credit card and auto loan delinquencies.

Spillover Effects

• Spillover exposure increases financial risk even in non-legal states.

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Protective Factor

• Adults 65 and older.
• Majority of population does not participate in betting.

Risk Factor

• Individuals under 40 years old.
• Male.
• Credit harm.
• Loan delinquencies.

Identified Recommendations

Research

• Research should expand beyond credit outcomes to include:

• • Mental health impacts
  • Family outcomes
  • Social and behavioral effects

Policy

• • Policy evaluation should consider cross-state economic interactions, not isolated state effects.