{"id":82833,"date":"2024-08-04T19:04:08","date_gmt":"2024-08-04T19:04:08","guid":{"rendered":"https:\/\/neclink.com\/index.php\/2024\/08\/04\/declining-credit-scores-in-sports-betting-states-says-ucla-usc\/"},"modified":"2024-08-04T19:04:08","modified_gmt":"2024-08-04T19:04:08","slug":"declining-credit-scores-in-sports-betting-states-says-ucla-usc","status":"publish","type":"post","link":"https:\/\/neclink.com\/index.php\/2024\/08\/04\/declining-credit-scores-in-sports-betting-states-says-ucla-usc\/","title":{"rendered":"Declining Credit Scores in Sports Betting States, Says UCLA, USC"},"content":{"rendered":"


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\n Posted on: August 4, 2024, 03:00h.\u00a0\n <\/p>\n

\n Last updated on: August 4, 2024, 12:32h.\n <\/p>\n

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Consumers in states with legalized sports wagering are experiencing declines in credit scores and an uptick in bankruptcy filings, according to a new study by the University of California Los Angeles (UCLA) and the University of Southern California (USC).<\/p>\n

\"Massachusetts
A sports bettor places an online wager on a mobile device at a bar adjacent to Boston\u2019s Fenway Park. A study conducted by UCLA and USC says states with sports wagering see weakening consumer credit trends. (Image: AP<\/em>)<\/figcaption><\/figure>\n

To date, the deterioration in consumer credit ratings in states that allow sports betting has been modest. UCLA and USC note the average drop in credit scores after a state permits sports wagering is 0.3%. Currently, 38 states and Washington, DC<\/a> permit betting on sports.<\/p>\n

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The decline in credit score is associated with changes in indicators of excessive debt. We find a substantial increase in bankruptcy rates, debt collections, debt consolidation loans, and auto loan delinquencies. We also find that financial institutions respond to the reduced creditworthiness of consumers by restricting access to credit,\u201d according to the study.<\/p>\n<\/blockquote>\n

The universities examined consumer credit trends in states in the first month after some form of sports betting \u2014 online or retail \u2014 was authorized. From there, the researchers differentiated between wagers that were placed at brick-and-mortar sportsbook and those place via computers and mobile apps.<\/p>\n

Online Sports Betting Trends Worse<\/h2>\n

The UCLA\/USC research team observed that softness in consumer credit and loan delinquencies accelerated more rapidly in jurisdictions that allow online sports betting.<\/p>\n

\u201cIn states that allow online\/mobile gambling, the decrease is roughly three times larger, suggesting that legal sports gambling does worsen consumer financial health, especially so when mobile access is allowed,\u201d noted the study. \u201cwe focus on states with online access to gambling, we also find a roughly 28% increase in bankruptcy likelihood and an 8% increase in debt collection amounts, both statistically significant. These effects generally appear roughly two years after when gambling became legal.\u201d<\/strong><\/p>\n

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The report acknowledged that in states that permitted mobile sports wagering, credit card delinquencies decreased, but the researchers added that access to consumer credit in those states became more restricted and the ratio of secured to unsecured loans increased. Recent data indicate sports bettors have responded to economic headwinds by reducing wagering spend<\/a>.<\/p>\n<\/div>\n

For operators, that\u2019s relevant because there\u2019s growing evidence, including rising unemployment<\/a>, that the US economy is slowing. \u00a0Last week, the Philadelphia Federal Reserve said the number of credit card accounts past due in the first quarter reached the highest levels since the survey started 12 years ago and the New York Federal Reserve says almost 20% of consumers are maxed out on their credit cards.<\/p>\n

Other Credit Concerns Stemming from Sports Betting<\/h2>\n

The UCLA\/USC study also noted that the demographics most vulnerable to financial hardship stemming from sports betting are young people and those in lower income brackets. The researchers also highlighted an alarming trend in consumer bankruptcy filings in states allowing online sports wagering \u2014 one that takes awhile to appear.<\/p>\n

\u201cThree to four years after the legalization of online sports gambling, we observe that the likelihood of bankruptcy filing increases by as much as 25-30% when compared to pre-treatment levels,\u201d observed the research team.<\/p>\n

It\u2019s possible to contest the links between sports betting and financial distress. In WalletHub\u2019s<\/em> recently released survey of state-level \u00a0consumer financial distress, two of the 10 most distressed states \u2014 Texas and Georgia \u2014 don\u2019t allow any form of sports betting. On the other hand, each of the 10 states with the least financially distressed consumers allow sports wagering and eight have mobile betting.<\/strong><\/p>\n<\/div>\n


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Posted on: August 4, 2024, 03:00h.\u00a0 Last updated on: August 4, 2024, 12:32h. Consumers in states with legalized sports wagering are experiencing declines in credit<\/p>\n","protected":false},"author":1,"featured_media":82834,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[158],"tags":[],"class_list":["post-82833","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gambling"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/posts\/82833","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/comments?post=82833"}],"version-history":[{"count":0,"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/posts\/82833\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/media\/82834"}],"wp:attachment":[{"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/media?parent=82833"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/categories?post=82833"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/tags?post=82833"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}