REPORT: Legal Sports Betting May Be Affecting InvestingBetting Numbers Continue To Rise As Investing Numbers Drop |
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With the rise of legalized sports betting, more Americans are apparently forsaking some additions to their investment portfolios in favor of an increasing budget for betting, according to a new report.
Sportsbook Review found that Americans are betting an average of $1,100 per year on sports. That calculates to about $280 a quarter, an increase of about $25 and climbing.
At the same time, researchers have also found that net investments dropped about 14% in the two or three years after sports betting was legalized in a state, according to Business Insider. “Financially constrained households” also generally dedicated a larger portion of their income to sports wagering.
“These households, already in relatively bad financial shape, are more likely to divert funds from their investment portfolios to betting activity,” researchers note. “Given that sports betting has a negative expected value, this finding underscores the potential for sports betting legalization to exacerbate financial vulnerability and hardship.”
Americans have embraced sports betting at a time when financial advisors are sounding alarms about low savings and investments by some approaching retirement age.
“When asked if the nation faces a retirement crisis, 79 percent of Americans agree there indeed is a retirement crisis, up from 67 percent in 2020,” the National Institute on Retirement Security noted in a recent study. “More than half of Americans (55 percent) are concerned that they cannot achieve financial security in retirement.”
Some of those parlays and futures bets would be better put toward an IRA or 401(k). The findings fall in line with another study from June that reported that bankruptcies rose 28% in the states where wagering on sports is more easily accessible.
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