Gambling Away Stability: Sports Betting’s Impact on Vulnerable Households

ArXiv ID: ssrn-4881086 “View on arXiv”

Authors: Unknown

Abstract

We estimate the causal effect of online sports betting on households’ investment, spending, and debt management decisions using household transaction data and a

Keywords: Online Sports Betting, Household Finance, Risk-Taking Behavior, Consumer Debt, Transactional Data Analysis, Household Finance/Consumer Spending

Complexity vs Empirical Score

• Math Complexity: 3.5/10
• Empirical Rigor: 7.0/10
• Quadrant: Street Traders
• Why: The paper relies on causal econometric methods (e.g., difference-in-differences) which involve moderate statistical formulas but no advanced stochastic calculus, placing math complexity in the low-to-moderate range. The empirical rigor is high due to the use of detailed household transaction data, causal identification, and analysis of real financial outcomes like spending and debt, making it backtest-ready with real-world data.

  flowchart TD
    A["Research Goal<br>Estimate causal effect of online sports betting<br>on household finance decisions"] --> B["Data Sources<br>Household transaction data<br>Online betting platform records"]
    
    B --> C["Key Methodology<br>Matched sample analysis<br>Investment/Spending comparison<br>Pre-Post betting event analysis"]
    
    C --> D["Computational Processes<br>Panel regression models<br>Propensity score matching<br>Event study methodology"]
    
    D --> E["Key Findings<br>Reduced risky investments<br>Increased consumption volatility<br>Higher debt accumulation<br>Impact on vulnerable households"]