Bankruptcies jump 28% in states with legal online sports betting 

Bankruptcies have risen 28% in states that legalised online sports gambling, according to a new working paper from the University of California, Los Angeles.

A 2018 Supreme Court ruling paved the way for states to legalise sports gambling; in the 38 states that did so, financial measures including credit scores and bankruptcies worsened significantly across the board, according to the UCLA paper.

Researchers found that from 2018 to 2023 $300 billion was wagered through new sports gambling channels, most of it online. The study revealed that on top of the 28% surge in bankruptcies, debt collections rose 8% in states that legalised online gambling, while credit scores decreased 0.3%, despite lenders becoming more risk-averse following legalisation. The decrease in average credit score was three times larger in states which had legalised online or mobile gambling.