Sports Bettors Eye Income, but Some Take on Debt to Fund Wagers

Sports Bettors Eye Income, but Some Take on Debt to Fund Wagers

A small fraction of sports bettors earn consistent profits, and an even smaller group possesses the skills necessary to make a livelihood from sports wagering, yet those long odds are not deterring some bettors from attempting it. 

Information from NerdWallet shows that almost 66% of surveyed sports bettors participate in this activity to earn additional money, yet some are accruing debt to support their behavior. That aligns with additional research validating increased consumer loan and credit card debts in regions where online sports betting is permitted.

"The survey found that 14% of sports bettors have gone into debt for gambling and 31% consider gambling to be an investment,” according to NerdWallet. “While yes, you may win money — 40% of sports bettors say they’ve had net gains in the past 12 months — it’s high risk when compared to something that historically offers slow, long-term growth, like investing i a well-diversified index fund. And going into debt for gambling can indicate problematic financial behavior, just like going into debt for any nonessential spending.”

Those percentages may be considered excessive when taking into account that, according to certain estimates, only 3% of sports bettors achieve consistent long-term profits. 

Certain Sports Gamblers Taking Misguided Actions 

Certain inexperienced bettors step into the realm of sports betting believing they will succeed due to their loyalty as fans and their understanding of particular athletes, sports, and teams. NerdWallet reports that 42% of those surveyed express this sentiment, yet some accomplished professional bettors claim they're not major sports enthusiasts. Some assert that they don't even watch games on TV. Instead, they analyze line shifts to derive worth. 

Adding to the troubles for unsuspecting novice bettors is the fact that many make financial errors to fund sports betting. Along with accumulating debt, some sports gamblers reduce their traditional investments to fund their betting habits, which could jeopardize their long-term financial stability in the process. 

The National Bureau of Economic Research observes that following the 2018 Supreme Court decision regarding the Professional and Amateur Sports Protection Act (PASPA), enthusiastic sports bettors allocated 14% less of their earnings to investment and retirement funds. 

A research project carried out last year by analysts from Brigham Young University (BYU), Northwestern University, and the University of Kansas discovered that certain sports bettors go as far as selling stocks to finance their betting activities. 

Increased Number of Sports Bettors Joining 

Even with the slim chances of winning and the risk of financial disappointment, an increasing number of bettors are anticipated to join the already rapidly expanding US sports betting market. Some claim they plan to increase their average bet size in 2025 because they anticipate a robust economy.

"It’s the start of 2025, and nearly 3 in 10 sports bettors (29%) say they plan to increase the amount they bet this year compared to 2024. Some think they’ll have more cash to gamble this year — around a third of sports bettors (34%) believe they’ll have more money to gamble in 2025 than in 2024,” observes NerdWallet.

These gamblers need to recognize the emotional impacts that sports betting can impose. For instance, almost one-third of respondents surveyed by NerdWallet claim that a losing wager is “devastating,” and 21% conceal their betting behavior from their partners.