By Eric Stann
Feb. 5, 2026
Contact: Eric Stann, StannE@missouri.edu
Sports gambling is no longer confined to casino floors or Vegas sportsbooks. Instead, it has spread to smartphones, televisions and social media feeds across the country. Now legal in Missouri, this type of betting is often sold as easy entertainment and a boost for state tax revenue. However, research suggests the ripple effects go much deeper — influencing household finances, public health and even how fans view and treat athletes.
As more states legalize sports gambling, experts in economics, psychology and sports management at the University of Missouri explain the benefits and the hidden costs.
How can legal sports gambling affect a state’s economy, including tax revenue and jobs, and how do those benefits compare with the costs?
Expert: Eric Parsons, teaching professor of economics at Mizzou’s College of Arts and Science
Parsons: Legal sports gambling does bring in new tax revenue, but the overall economic benefit is often smaller than people might expect.
Across the U.S., state tax revenue from sports betting has grown quickly, from about $190 million in late 2021 to more than $900 million by mid-2025, according to data from the Census Bureau. That sounds impressive, but economists focus on net gains, not just new dollars coming in.
The key question is whether this is truly new money, or are people just shifting their spending from other activities? Research suggests it’s often the latter. For example, a peer-reviewed study from West Virginia found that while sports betting tax revenue increased, revenue from other — often more heavily taxed — forms of gambling declined even more. The result was a net loss for the state.
These days, most sports betting happens online, so it doesn’t create as many local jobs as a casino or other in-person entertainment. For states like Missouri, the real gain might not be big job growth. Instead, it’s keeping residents’ bets close to home instead of losing them to neighboring states or offshore sites.
Finally, states must account for public costs. Research links online sports betting to increases in problem gambling, crime, intimate partner violence, household debt and bankruptcy. A 2024 National Bureau of Economic Research study found that for every dollar wagered on sports, households reduced savings or investments by about one dollar, with even larger effects for financially vulnerable families.
The takeaway: Legal sports betting can generate revenue, but it also creates social and financial costs that states must plan for.
What prevention and treatment strategies work for gambling addiction?
Expert: Ian Gizer, associate professor of psychology at Mizzou’s College of Arts and Science
Gizer: Prevention research for gambling addiction is still surprisingly limited. Educational programs that explain how gambling works and its risks can raise awareness, but there’s little evidence yet that they change gambling behavior. One promising approach is personalized feedback, where people see how their gambling compares to typical behavior. This can shift attitudes, but we still need stronger evidence that it reduces gambling itself.
Preventive measures — such as time limits, spending caps and smartphone-based controls — show potential, especially for online betting. However, many studies involving these tools are small or have limitations, meaning more research is urgently needed as online gambling expands rapidly.
Treatment options are better studied but still limited. There are well-designed studies indicating that cognitive behavioral therapy is an effective form of treatment for gambling disorder, and growing evidence in support of motivational interviewing as another treatment approach. Evidence supporting other psychological interventions, including self-help groups, however, is weaker.
Some medications, such as naltrexone and nalmefene, affect brain reward systems and can reduce gambling urges for certain people. How these medications work alongside psychotherapy is an important area for future research.
As for barriers to treatment, stigma is a major one. Many people don’t see gambling addiction as a health issue, or they feel ashamed asking for help. Others don’t know if treatment options exist or can’t access affordable care. Addressing these barriers is just as important as improving the treatments offered.
How has legal sports betting changed the experience for athletes and the culture of sports?
Expert: Michelle Brimecombe, assistant teaching professor of parks, recreation, sport and tourism at Mizzou’s College of Agriculture, Food and Natural Resources
Brimecombe: Legal sports betting has transformed sports into a high-stakes financial marketplace, and athletes feel the effects directly.
First, fans are no longer just fans; many are now financial stakeholders. When money is on the line, expectations change. Athletes are increasingly viewed as investments rather than people, and a single missed shot or bad game can trigger intense backlash online.
Second, criticism has become more data-driven and constant. Sportsbooks, media outlets and leagues now use advanced analytics, real-time data and artificial intelligence models to evaluate performance. This puts athletes under nonstop statistical scrutiny, amplifying pressure and public judgment.
Finally, questions about fairness and integrity have always been part of sports, but today they’re felt more strongly than ever. With growing media attention on sports betting and fans more involved in wagering, athletes at all levels can face added scrutiny and pressure to perform. This environment can create stress and concern, as stories about match-fixing or unfair play spread quickly.
While sports betting generates massive revenue for leagues and organizations, it also reshapes the emotional and ethical environment of sports in ways that deserve serious attention. Supporting athletes’ well-being has never been more important.
