Mobile Sports Betting Legalization Raises Credit Delinquencies, NY Fed Finds

The U.S. Supreme Court’s 2018 Murphy v. NCAA ruling cleared the way for states to authorize sports wagering, and 38 states have since legalized mobile betting. More than $500 billion has been wagered as the industry expanded, bringing states new tax revenue while raising questions about household financial stress. The issue also reaches beyond state borders because residents of jurisdictions where betting remains illegal can access neighboring legal markets.

New York Fed researchers Jacob Goss and Daniel Mangrum said in a March 25, 2026 post, drawing on Staff Report No. 1184, that legalization increased online sportsbook spending roughly tenfold and lifted participation by 3.1 percentage points. Overall serious delinquency — defined as any account at least 90 days past due — rose 0.3 percentage point from a 10.7% baseline. After three years, the increase exceeded 0.5 point; among borrowers under 40, credit-card and auto-loan delinquency rose 1.02 and 0.55 points, respectively.