00:00For the second time this summer, an academic study has been published that found legal sports betting
00:04has a disproportionately negative effect on lower-income households.
00:09Authors of the study analyzed consumer data for more than 230,000 households.
00:15They found that low-income bettors tend to use money they would otherwise invest in traditionally
00:20safer financial products, like stocks and bonds, to wager on sports instead.
00:25The more recent study concluded that legal sports betting has led to a 14 percent reduction
00:30in net investments since 2018.
00:33The study's authors found that sports bettors didn't reduce spending on other forms of gambling,
00:38such as the lottery, and actually increased expenditures on, quote,
00:42complementary goods like restaurants and cable television.
00:46As with a previous study conducted by three collegiate researchers from Southern California,
00:50the second study found that sports betting has adverse effects on consumer credit as well.
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