What does the economics research say about the macroeconomic effects of the expansion of legalized gambling in the U.S.?

    Since the 2018 Supreme Court ruling that opened the door to sports betting, the number of states with legal online gambling has grown significantly. I'm curious what economists think about the downstream effects of this.

    Is gambling considered a net drag on consumer spending in other sectors, given that it doesn't produce goods or services?

    Is there research on how gambling expansion affects household savings rates or consumer debt levels, particularly across different income brackets?

    How do economists typically model industries like gambling that redistribute wealth without creating productive output — similar to how some treat financial speculation?

    I've seen arguments that gambling functions as a regressive tax, but I'd be interested in what the peer-reviewed literature actually shows about its broader economic footprint.

    Does the expansion of legal sports betting act as a drag on the broader economy?
    byu/Savings_Collar5470 inAskEconomics



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