As the World Cup begins, researchers warn sports bettors may be gambling with their grocery money
Legalized sports betting is linked to lower food sufficiency in U.S. households, according to a study by the nonprofit National Bureau of Economic Research (NBER). The research indicates that gambling losses can reduce financial stability, potentially leaving households with fewer resources to purchase essential groceries.
The report, titled “Wagering the Bread Money: Sports Betting Legalization and Food Sufficiency,” arrives as people are expected to wager $60 billion on the FIFA World Cup. The researchers found a correlation between sports wagering and food insufficiency, which is defined as more severe than food insecurity. While food insecurity involves worrying about food running out, insufficiency means a household does not have enough to eat.
How does sports betting impact food sufficiency?
Legalization of sports gambling in nine states led to an additional 284,000 food-insufficient households and $130.2 million in excess healthcare spending annually, according to the NBER paper. The authors noted a cyclical spike in lower food sufficiency during the NFL season.
Among working-age adults without a college degree, household food sufficiency dropped 2.1% as sports betting became legal. That drop was significantly steeper for active bettors, falling by 10.5%, the study found. The largest declines occurred among adults ages 25 to 44, a group the researchers identified as higher-propensity bettors.
What are the financial consequences for bettors?
One in four sports bettors have missed bill payments because of wagers, and about 30% report debts related to sports gambling, according to a 2025 US News survey. Previous NBER research also linked sports betting to lower savings rates and more frequent overdrawn bank accounts.
Les Bernal, national director at Stop Predatory Gambling, told MarketWatch that delinquency rates for car loans and credit cards jumped by 25% to 27% for borrowers under age 40 in states with legal internet sports betting. Bernal stated that commercialized gambling has trapped millions of Americans, particularly young men, in financial distress.
The NBER paper also connected gambling addiction to psychological distress, anxiety, and depression. According to the authors, these mental health issues could impact a person’s earnings and job performance, further reducing the money available for food.
Which states generate the most sports betting tax revenue?
Many states legalized sports betting to increase tax revenue. As of May 2026, New York led the nation with $4.2 billion in tax revenue from sports betting, according to the source.
Illinois followed with $1.2 billion, while Pennsylvania generated $988 million and New Jersey brought in $887 million. These figures highlight the scale of the industry’s growth since the 2018 legal shift.
What factors might influence these findings?
The NBER researchers noted that direct causation is difficult to establish. They stated that the food insufficiency data was self-reported and could be inaccurate.
Other external factors overlapped with the study period, including rising U.S. inflation and changes to SNAP benefits. The researchers also noted that the time frame followed the COVID-19 pandemic, both of which have made it harder for Americans to afford food.
Industry operators like FanDuel and DraftKings provide in-app tools to limit spending and time, and offer resources to address problem gambling. However, Les Bernal suggests that the cumulative losses from regional casinos, state lotteries, and online betting could lead Americans to lose more than $1 trillion in personal wealth over the next five years.
What may happen next?
Given the upcoming 2026 FIFA World Cup and 2028 Olympic Games, researchers suggest their findings could have important policy implications. Lawmakers may face pressure to evaluate the societal costs of gambling against tax gains.
Further research may be required to isolate the impact of sports betting from inflation and SNAP benefit changes. Betting operators could potentially expand their responsible gambling tools as more data emerges regarding food insufficiency.
Frequently Asked Questions
What is the difference between food insecurity and food insufficiency?
Food insecurity is defined as having access to food but worrying it will run out or lack nutrition. Food insufficiency is considered more severe and is a measure of whether a household actually has enough to eat.
Who is most at risk of food insufficiency due to sports betting?
According to the NBER study, active bettors and adults aged 25 to 44 are at higher risk. Specifically, food sufficiency dropped 10.5% among active bettors who were working-age adults without a college degree.
Where can people find help for gambling problems?
The National Problem Gambling Helpline provides free, confidential support 24/7 at 1-800-MY-RESET.
Do you believe state governments should prioritize tax revenue from sports betting over the potential risk to household food security?