PPI Study Shows Problem Gambling Fallout Less Than Expected

A new study delivered some shocking insight into the link between legal sports betting and financial risks.

A study conducted by the Progressive Policy Institute was released this week, which dove into the socioeconomic impact of sports betting. The analysis yielded numerous results, but the most surprising was that the spike in bankruptcies and drop in credit scores expected to follow the legalization of sports betting have not materialized. 

The PPI study directly contradicts results from similar studies performed by other groups, delivering a surprising win for regulated sports betting.

Stunning Study Cited Several Sources

The shocking results from the PPI study will lead some responsible gaming groups to reject it, but the report doesn’t leave much room for question. The group used data from the US Federal Courts, the Bureau of Economic Analysis, the National Council on Problem Gambling, and Sacred Heart. These are well-respected sources of information, making the numbers cited by PPI hard to deny.

It is important to note that PPI is not tied to the sports betting industry, nor was it commissioned to conduct the study on its behalf. While this doesn’t necessarily confirm the study’s results, it does make it hard to argue that they were intentionally tainted.

Why Isn’t Financial Fallout Spiking?

When states began to legalize sports betting in 2018, there was a general acceptance that financial fallout would spike. Things like bankruptcies and dropping credit scores were expected to rise, but states were also using some of the new revenue to beef up their problem gambling resources. 

If these results from the PPI hold true, it appears that investments into problem gambling resources are paying off. With sportsbooks and independent watchdogs using cutting-edge technology to detect suspicious or problematic gambling, they may be catching the problem before it can do long-term damage.

Will Responsible Gaming Groups Accept the Results?

The results from the study are a promising sign, but that doesn’t mean they won’t come under fire from responsible gaming groups. That’s because these groups have worked hard on initiatives to help people bet responsibly, using financial dangers as a dire warning. 

With the fallout being far less than initially estimated, it will likely prompt Americans to question other warnings from responsible gaming groups. Even if the numbers are accurate, they could soon change if bettors began to become less fearful and take bigger risks. 

Time will tell if they choose to reject the study or a stepped-up public campaign.