New Sports Betting research highlights worrying behaviors, thinking

Key Points

• NerdWallet’s survey reveals that 1 in 5 Americans (20%) placed a sports bet in the past 12 months

• 65% of sports bettors identified in the survey engage in wagering as a way to make extra money

• Nearly 29% of sports bettors plan to increase their wagers in 2025

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It’s no secret that sports betting is a widespread phenomenon that continues to grow in visibility and popularity. Now legal in 39 states (Missouri won’t be operational until mid-2025), Washington, D.C. and Puerto Rico, ongoing research focused on gambling’s impacts is crucial. A recent NerdWallet survey sheds light on the behaviors and perceptions of American sports bettors, revealing concerning trends in financial habits, motivations and risk-taking tendencies. 

As the sports betting landscape continuously evolves, we must continue to adapt, whether that’s preventative measures to reduce the chances of gambling harms, or increasing access to specialized support resources. Here we’ll dive into key takeaways from the survey, discuss its limitations, explore the varying definitions of “sports betting” and shine light on the pathways to care for individuals seeking gambling addiction treatment.

Key takeaways from new betting survey

Increased Participation and Spending

Compared to the 12% reported in a similar 2023 survey, NerdWallet’s survey reveals that 20% of Americans placed a sports bet in the past 12 months. The survey found that, on average, sports bettors spent $3,284 on gambling over the past year, with a median spend of $750. Compared to all gamblers (including non-sports betting), sports bettors spend significantly more ($3,284 vs. $1,827). 

Motivations and Financial Risks

The top reason cited for sports betting was financial gain, as 65% of sports bettors identified in the survey engage in wagering as a way to make extra money. Alarmingly, 14% of sports bettors reported going into debt to fund their gambling activities. 

Another stunning finding was that 31% view sports betting as an investment strategy, which raises concerns about misconceptions regarding gambling as a sustainable, wise financial practice. Only 24% report gambling winnings as taxable income, and 14% attempt to deduct losses. Many may not realize gambling winnings are taxable, regardless of whether they receive a Form W-2 G.

Escalation of Betting Habits

Nearly 29% of sports bettors plan to increase their wagers in 2025 compared to the previous year. Sports betting may be seen as a recreational activity for many, but it is also a behavior that can become compulsive over time. With the political landscape in mind, 34% of individuals believe they will have more money to gamble in 2025 due to shifting economic policies.

Limitations of NerdWallet study

While the NerdWallet survey provides valuable insights, it does have some limitations we feel are important to highlight:

1. This survey depends on self-reported data, and because self-reported data may be unreliable, respondents may underreport or overestimate gambling behaviors.
   
   

2. While the sample of over 2,000 U.S. adults is large and provides important info, this was conducted online and may not be fully representative of all sports bettors.
   
   

3. The survey does not distinguish between those who bet occasionally versus those who bet regularly, limiting insights into behavioral patterns.
   
   

4. The survey notes that 31% see gambling as an investment, but it does not clarify whether these bettors understand the risks or likelihood of profit compared to traditional investments.

Another limitation is that, because of the broad (often varying) definition of what’s inclusive under “sports betting,” the NerdWallet study does not specify whether respondents were engaging in traditional sports betting, DFS, or newer hybrid models. This lack of clarity makes it difficult to determine whether the behaviors observed are specific to one form of betting or indicative of broader trends in the industry.

Varying definitions of “sports betting” in research

Speaking of, the varying definitions of “sports betting” make it difficult to gauge some of the habits of respondents in gambling studies. For example, the NCAA’s recent gambling survey of student-athletes includes “playing the stock market” as a form of gambling. But investing in the market can be considered a sound financial strategy, rather than gambling, depending on the level of risk and speculation involved.

Similarly, the role of fantasy sports in the definition of gambling remains unclear. If a fantasy sports league requires an entry fee, does that classify it as gambling? And while traditional DFS (Daily Fantasy Sports) contests involve peer-to-peer competition, “DFS 2.0 platforms” like PrizePicks and Underdog blur the lines by creating a structure that closely resembles sports betting prop parlays. Unlike traditional DFS games, these newer models pit players against the house.

Regulators are taking notice. Several states, including Massachusetts, Ohio, Arkansas and Florida, have issued cease-and-desist letters or taken legal action against DFS operators offering these pick 'em style contests. The American Gaming Association has gone so far as to label these products as “unlicensed sports betting masquerading as daily fantasy products.” Legal experts argue that the expansion of DFS 2.0 has created a gray area in gambling laws, prompting debates about how such platforms should be regulated.

Knowing where to turn: Gambling addiction treatment

With sports betting becoming more accessible and popular, the need for gambling addiction resources is greater than ever. Problem gambling can have severe financial, emotional, and psychological consequences. For individuals struggling with gambling addiction, seeking help from a specialized treatment provider like Birches Health is essential.

Birches Health is dedicated to providing support and treatment for individuals affected by problem gambling. Birches’ evidence-based approach includes tailored therapy with licensed professionals, covered by insurance, and support programs designed to meet each individual's needs. If you or a loved one is struggling with gambling addiction, know that help is available. Birches Health provides the resources and support necessary to regain control and build a healthier future.

There are different options for getting started with Birches Health:

• Book an appointment 

• Call 833-483-3838

• Email help@bircheshealth.com