‘This is a money-losing proposition for most of these individuals’: Americans are draining stock portfolios to shovel more money into sports betting

Americans are withdrawing money from their stock portfolios and savings accounts to fuel their sports betting habits, according to recent studies. Following the U.S. Supreme Court's 2018 ruling that overturned the Professional and Amateur Sports Protection Act, sports betting has become increasingly popular, with revenue soaring from $441 million in 2018 to over $16.6 billion in 2025. As a result, Americans placed about $30 billion in legal bets during the 2025 NFL season.

Financial experts warn that this trend has proven detrimental to many individuals' finances. Scott Baker, an associate professor of finance at Northwestern University's Kellogg School of Management, states that household bets have increased by $1,100 per year in states where online sports betting is legal, while net investments have decreased by nearly 14%.

These gamblers are not just shifting money from other entertainment budgets, but also using funds to attend sports games or consume sports content, creating a snowball effect of spending on betting and related entertainment.

The impact extends beyond personal finances, as credit scores have fallen an average of 0.3% in states that have legalized sports betting. Increased rates of bankruptcy, debt collections, debt consolidation loans, and auto loan delinquencies have also been observed. Michelle Malkin, a criminal justice and criminology professor at East Carolina University, expresses concern over the potential rise in gambling addiction as sports betting becomes more prevalent.

She notes that problem gamblers make up a small fraction of the population but represent a significant portion of state legal gambling revenue. While regulated states can benefit from tax revenue, advocates argue that increased regulation is necessary to protect individuals from the detrimental effects of gambling disorder.