A New York Federal Reserve study reveals legalized sports betting in US states correlates with significant credit distress, despite generating substantial tax revenue. The analysis of consumer spending and Equifax data shows a 0.3 percentage point increase in delinquency rates across entire states post-legalisation. However, among active users of apps like DraftKings and Flutter, delinquency rates jump by 10 percentage points — effectively doubling from baseline levels.

This stark contrast highlights the complex trade-offs of regulated gambling markets, where consumer protection concerns may outweigh fiscal benefits. The findings suggest policymakers must carefully weigh economic gains against potential household financial harm.