New UNL study shows hidden financial costs to online sports wagering

LINCOLN, Neb. (KLKN) — The University of Nebraska-Lincoln (UNL) released a new study done by Justin Balthrop, assistance finance professor, that shows hidden financial costs of online sports betting.

The study revealed that sports betting can lead households to save and invest less.

“Online sports betting does more than compete for consumers’ entertainment dollars,” Balthrop said. “It can lead to spending money they planned to invest, particularly among those already facing financial constraints.”

According to the study, 183,821 U.S. households’ financial transactions were analyzed to see how investing, spending and debt changed after the legalization of online sports betting in 26 states.

“People are taking money out of their retirement and out of their savings,” Balthrop said. “It is not synonymous with entertainment funds in practice. It’s synonymous with money that you should be saving or putting to some more productive use.”

According to the study, households with limited savings experienced the most financial consequences.