New Study Released: “Analyzing the Costs and Benefits of Legalized Sports Betting”
August 8, 2025
A new academic study has been released by Professor Kurt Rotthoff of Seton Hall University that evaluates the costs and benefits of legalized sports betting in the U.S. Unlike much of the recent research that focuses solely on potential harms, this study takes a comprehensive approach, offering a clearer picture of the real-world impacts of legalization.
To our knowledge, it is has not been peer reviewed, so we didn’t want to share it broadly at this time. If any members have seen it, we’d be grateful for your insights.
Below are some key takeaways from the research:
- Financial harms are minimal and limited to a small subset of households. Average bettors spend only 0.66% of their income, and aggregate changes in credit scores or bankruptcies are negligible.
- Most “harms” pre-date legalization and are often associated with illegal or unregulated gambling.
- Legalization improves consumer protection, reduces violence, and increases game integrity. Operators in regulated markets are catching suspicious activity, flagging match-fixing concerns, and helping leagues investigate threats.
- Legal markets encourage help-seeking and reduce stigma. Hotline usage is up, but likely reflects better awareness and access, not a surge in problem gambling.
- Economic benefits are significant: Nearly $9 billion in tax revenue collected to date, job creation, GDP growth, and a measurable increase in fan engagement.
Please let us know if you’d like to discuss how this research can support iDEA’s state-level efforts.