New York Fed Links Online Sports Betting to Higher Credit Delinquencies

A new study from the Federal Reserve Bank of New York finds that legalization of online sports betting in more than 30 states is associated with a measurable rise in consumer credit delinquencies, adding another strain on Americans’ finances as overall delinquencies hit their highest level since the 2008 crisis. Using Equifax credit-report data and consumer-spending records, the New York Fed reports that after states legalized online sportsbooks, 90‑day‑plus delinquencies rose about 0.3 percentage points across the full population, while among the roughly 3% of adults who newly took up betting, estimated delinquency rates jumped by about 10 percentage points. The study also shows average quarterly sportsbook deposits more than doubled since 2020, from around $500 to about $1,250 in 2025, reflecting a sharp increase in gambling outlays on platforms like DraftKings and FanDuel. The report comes as Arizona’s attorney general sues prediction-market platform Kalshi for allegedly illegal sports gambling and as a new federal bill seeks to bar prediction markets from offering contracts that resemble sports bets or casino games, signaling growing regulatory backlash against lightly supervised online wagering. Together, the findings and legal moves underscore mounting concern that easy, app-based betting is quietly eroding household balance sheets and will feed higher default rates if left unchecked.