Online Sports Betting Comes with a Cost, UNH Research Finds

Being able to place a bet from virtually anywhere with just a few taps on a phone may be viewed as a convenience by some sports fans, but recent University of New Hampshire research shows that convenience may come at a cost.

In a study led by Gorkem Turgut (G.T.) Ozer, assistant professor of decision sciences at UNH Peter T. Paul College of Business and Economics, researchers found that state legalization of online sports betting was associated with a 22.8% increase in calls to the National Problem Gambling Hotline, and a 3.1% increase in suicide rates.

“Our key finding highlights a divide: the negative consequences manifest primarily when the activity shifts online,” Ozer says. “The widespread accessibility of mobile gambling coincided with a measurable uptick in problem gambling hotline calls and elevated suicide rates."

When the researchers looked at different demographic groups, they found younger, unmarried and relatively less-educated men were most affected — a group previous research also identified as vulnerable to problem gambling.

Ozer's research was recently published in Information Systems Research. While previous research has linked easier access to gambling with greater potential for harm, Ozer says there was little evidence showing just how much digital access could amplify those risks in the relatively new U.S. online sports betting market.

To reach their findings, Ozer and study co-authors Brad Greenwood, professor of business at George Mason University, and Anandasivam Gopal, professor of business at Nanyang Technological University, analyzed problem gambling hotline calls and suicide rates across the U.S. as states legalized sports betting at different times. Because states differed in whether and when they legalized online betting and physical sportsbooks, the researchers were able to compare the effects of each form of legalization.

The growing risks go beyond just the ease of placing a bet. The research notes that technology has changed the overall nature of sports betting. Consumers are no longer limited to traveling to a physical location to place a wager before a game starts. They can now bet live as a game unfolds or make proposition bets on individual moments and player performances — from whether a particular player will score a touchdown to how many fouls a basketball player will commit.

“The business model of these platforms relies on sustained user participation,” Ozer says. “Integrating real-time feedback loops with unrestricted betting access creates an environment with a lower threshold for potential compulsive behavior.”

While the rapid growth of sports betting has generated billions of dollars in revenue, along with tax revenue for states, Ozer says the research findings highlight potential societal costs that policymakers should consider alongside those economic benefits.

“As online sports betting generates substantial state revenue, policy must actively mitigate its downstream harms,” Ozer says. “Such efforts may include ensuring better provider training, expanded mental health resources, and targeted outreach for high-risk groups.”

The findings are also relevant for colleges and universities, Ozer says, because younger adults are among the groups most affected, and online betting platforms give students around-the-clock access.

"Just as policymakers must weigh tax revenue against public harm, university leaders need to recognize these specific risk conditions and use empirical evidence to shape campus policies, digital guidelines, and student support programs," Ozer says.

Online sports betting fits into Ozer's broader research interest in how digital platforms can influence compulsive behavior. He is particularly interested in how unpredictable rewards, social feedback and game-like features can create a cycle that keeps users coming back — and how, when those behaviors occur across millions of users, their effects can grow from individual concerns into broader societal issues.

Ozer recently received part of a $2.6 million award to continue researching the financial and household impacts of sports betting. He will partner with other researchers to examine how people’s financial health changes when they move between states with different sports betting laws, including potential changes in credit health and financial distress.

Sports betting is now legal in 39 states and Washington, D.C., and Ozer says the continued growth of online betting and prediction markets is making it an increasingly important area.

"Combined with a rapid shift toward younger demographics, identifying further downstream implications to guide policy is more critical than ever," Ozer says.