UCLA study links online sports betting legalization to rising bankruptcy and gambling addiction rates

In a recent session of the Nebraska Legislature, lawmakers engaged in a critical discussion regarding the implications of legalized online sports betting, particularly its impact on financial health and gambling addiction. The meeting highlighted alarming trends linked to the rise of online gambling, especially among younger demographics.

A significant point of discussion was a study conducted by researchers from UCLA and the University of Southern California, which revealed that states allowing online sports betting experienced a 25 to 30% increase in bankruptcy filings compared to pre-legalization levels. This increase was accompanied by an 8% rise in debt collection amounts and a slight decline in average credit scores. Notably, financial distress was most pronounced among young men in low-income areas, raising concerns about potential predatory practices in the gambling industry.

Senator Bostar emphasized the importance of understanding these findings, stating that the data indicates a need for caution in creating laws that could exacerbate financial difficulties for vulnerable populations. The study also pointed to higher rates of credit card delinquencies and increased reliance on consolidation and unsecured loans among affected demographics.

The discussion further extended to the correlation between online sports betting and gambling addiction. Following the 2018 Supreme Court decision that allowed states to legalize sports betting, there was a reported 23% increase in online searches for gambling addiction help across the United States. States like Ohio, Pennsylvania, and Massachusetts saw even more significant increases, with searches for help rising by 67%, 50%, and 47%, respectively.

Internationally, similar trends have been observed. In Australia, a survey indicated that 15.5% of the population engaged in sports betting, with problem gamblers accounting for one-third of all betting expenditures. Brazil also reported substantial financial losses linked to online betting, with many individuals developing gambling problems.

The Nebraska Legislature's discussions underscore the urgent need to address the health implications of online sports betting, including the recognition and treatment of gambling addiction. As states continue to navigate the complexities of legalized gambling, the potential social and economic consequences remain a pressing concern for lawmakers and communities alike. The session concluded with a call for further examination of these issues to ensure that legislation does not inadvertently harm those most at risk.