Sports Bettors Eye Income, but Some Take on Debt to Fund Wagers

A scant percentage of sports bettors are consistently profitable and a smaller number are proficient enough to make a living wagering on sports, but those long odds aren’t preventing some bettors from giving it a try.

Data from NerdWallet indicate nearly two-thirds of sports bettors queried engage in the activity as a way to generate more income, but some are going into debt to fund their habit. That jibes with other studies confirming elevated consumer loan and credit card balances in states where online sports wagering is legal.

The survey found that 14% of sports bettors have gone into debt for gambling and 31% consider gambling to be an investment,” according to NerdWallet. “While yes, you may win money — 40% of sports bettors say they’ve had net gains in the past 12 months — it’s high risk when compared to something that historically offers slow, long-term growth, like investing in a well-diversified index fund. And going into debt for gambling can indicate problematic financial behavior, just like going into debt for any nonessential spending.”

Those percentages are arguably too high when considering that, by some estimates, just 3% of sports bettors notch consistent profits over the long term.

Some Sports Bettors Making the Wrong Moves

Some novice bettors enter the world of sports wagering thinking they’ll be successful because they’re devoted fans and knowledgeable of specific athletes, sports, and teams. NerdWallet says 42% of surveyed bettors feel that way, but some successful professional bettors say they’re not big sports fans. Some claim to not even watch games on television. Rather, they study line movements to extract value.

The National Bureau of Economic Research notes that since the 2018 Supreme Court ruling on the Professional and Amateur Sports Protection Act (PASPA) avid sports bettors directed 14% less of their incomes to investment and retirement accounts.

A study conducted last year by researchers from Brigham Young University (BYU), Northwestern University, and the University of Kansas found that some sports bettors even sell stocks to fund their sports betting efforts.

More Sports Bettors Entering the Fold

Despite the long odds of success and the potential for financial regret, more bettors are expected to enter the already fast-growing US sports wagering space. Some say they’re going to boost their average wager size in 2025 due to expectations that the economy will be strong.

It’s the start of 2025, and nearly 3 in 10 sports bettors (29%) say they plan to increase the amount they bet this year compared to 2024. Some think they’ll have more cash to gamble this year — around a third of sports bettors (34%) believe they’ll have more money to gamble in 2025 than in 2024,” observes NerdWallet.

Those bettors should be aware of the emotional tolls sports wagering can take. For example, nearly a third of those polled by NerdWallet say a losing bet is “devastating” while 21% hide their betting habit from their significant others.