Analyzing the Costs and Benefits of Legalized Sports Betting

Abstract Following a 2018 Supreme Court ruling that overturned the prohibition on sports betting in most states, 38 states have since passed laws legalizing sports gambling. Most of the literature examines the negative impacts of legalized sports betting. As with anything in life, activities often have both costs and benefits. Although many studies analyze the costs of legalized sports betting, most ignore that benefits exist. This study examines both the costs and benefits of legalizing sports betting. When both are considered, legalized sports betting appears to be a net positive in a well-structured regulatory environment.