Credit Delinquencies Rise Among Young Sports Bettors

Federal Reserve study finds 26% spike in delinquencies for under-40 bettors after legalization

Mar. 31, 2026 at 9:04pm

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An extreme close-up photograph of a stack of well-used credit cards, their surfaces heavily textured and worn, conveying the tangible financial burden of sports betting addiction.The financial toll of sports betting addiction, as seen in the wear and tear on consumer credit cards.NYC Today

A new study from the Federal Reserve Bank of New York has found that credit delinquency rates have risen significantly among young sports bettors since the legalization of sports betting in the U.S. The study found that delinquencies increased by 10% overall for sports bettors, but surged by 26% for those under the age of 40. The researchers warn that sports betting can have 'dramatic implications for household financial stability'.

Why it matters

The rise in credit delinquencies among young sports bettors highlights the potential financial risks and harms associated with the rapid growth of the legal sports betting industry, particularly for vulnerable populations like millennials and Gen Z. As more states legalize sports betting, there are concerns about the broader societal impacts beyond just individual financial troubles.

The details

The New York Fed study analyzed consumer credit data and found that after sports betting was legalized in the U.S., delinquency rates increased by 0.3% overall. However, when looking specifically at sports bettors, the delinquency rate rose by 10%. The researchers defined delinquency as being 90 days past due on any credit purchase, such as auto loans or mortgage payments. The study also found significant 'spatial spillover effects', meaning delinquency rates rose even in states where sports betting remained illegal but bordered legal states, likely due to residents crossing state lines to access online sports betting platforms.

  • The Supreme Court struck down the federal ban on sports betting in 2018, allowing 40 states to legalize the practice.
  • Commercial gaming revenue hit a record $78.7 billion in 2025, a 9.2% year-over-year increase.
  • Americans have wagered more than $520 billion on sports since legalization, with quarterly deposits rising to $1,250 in 2025 compared to $500 five years ago.

The players

Federal Reserve Bank of New York

The regional Federal Reserve bank that conducted the study on the rise in credit delinquencies among sports bettors.

Poet Larson

The co-author of the study and a postdoctoral fellow at the Digital Data Design Institute at the Harvard Business School.

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What they’re saying

“Because you have so many people sports gambling, you can start to see appreciable financial harms.”

— Poet Larson, Study co-author and postdoctoral fellow at the Harvard Business School

What’s next

Researchers and policymakers will likely continue to monitor the financial impacts of the rapid growth of the legal sports betting industry, particularly on vulnerable populations like young adults. There may be calls for increased consumer protections or responsible gambling measures as the industry continues to expand.

The takeaway

The surge in credit delinquencies among young sports bettors underscores the potential financial risks and harms associated with the legalization and normalization of sports gambling, especially for populations that may be more susceptible to developing problematic betting behaviors.