Key facts
- Legal sports betting is linked to a decline in food sufficiency for hundreds of thousands of U.S. households.
- A study found a 2.1% reduction in food sufficiency among working-age adults without college degrees after sports betting legalization.
- The financial stress from sports betting legalization increased difficulty in paying usual expenses by 3.7 percentage points.
- Legalization reduced the likelihood of renters being current on their rent by 2.4 percentage points.
- The study estimated that sports betting legalization created about 284,000 additional food-insufficient households.
- Experts warn that the rapid expansion of online gambling platforms and features like 'in-play' betting increase addiction risks.
A new study released just before the FIFA World Cup has found a significant correlation between the legalization of sports betting and increased food insecurity among U.S. households. Researchers from the National Bureau of Economic Research analyzed data from nine states that legalized sports betting between 2021 and 2023, comparing them to states where betting remained illegal.
The study found that household food sufficiency declined among working-age adults without a college degree following legalization, estimating a 2.1% reduction for this group. When extrapolated to active bettors, this decline could reach approximately 10.5%. The negative impact on food security typically emerged within two months of legalization and persisted for several months, with larger declines observed among younger adults (ages 25-44) and non-white individuals.
Financial stress appears to be the primary mechanism driving these effects. The study indicated a 3.7 percentage point increase in respondents finding it difficult to pay their usual expenses. Furthermore, legalization was associated with a 2.4 percentage point reduction in the likelihood of renters being current on their rent, and a decrease in spending on food eaten away from home.
Researchers estimated that sports betting legalization in the nine studied states contributed to approximately 284,000 additional food-insufficient households and generated about $130.2 million in excess annual healthcare costs. This figure represented 23.1% of the sports betting tax revenue collected by these states in 2023. The U.S. sports betting market reached nearly $17 billion in 2025, with states collecting $3.71 billion in taxes.
Experts also warn that the rapid expansion of online and mobile sports betting platforms, with features like 'in-play' betting and 'cash out' options, is increasing the risk of gambling addiction. Warning signs include needing to bet larger amounts, irritability when trying to cut back, and 'loss chasing.' Young men, highly engaged sports fans, and athletes are identified as particularly vulnerable populations.