Credit card delinquencies among millennials and Gen Z have soared because of sports betting—even in states where it’s illegal, new Fed study finds

Credit delinquency rates are on the rise in states that have legalized sports betting, and it’s impacting Gen Z and millennials the most.

A new working paper from the Federal Reserve Bank of New York found after sports betting was legalized in the U.S., delinquencies among the total population increased 0.3%. While that figure may appear small, when the Fed researchers analyzed the population of just those who participated in sports betting, delinquency rates rose by 10%. 

The New York Fed used an analysis of consumer credit data and defined delinquency rates as being 90 days past due on any credit purchase, such as auto loans or mortgage payments.

“Our findings suggest that sports betting can have dramatic implications for household financial stability,” the authors wrote.

In 2018, the Supreme Court struck down the Professional and Amateur Sports Protection Act effective banning sports betting, opening the door for 40 states to legalize the practice in some form. Since then, participation in sports betting, particularly online, has exploded. Commercial gaming revenue hit a record $78.7 Billion in 2025, according to the American Gaming Association, a 9.2% year-over-year increase....