The Impact of Legalized Sports Betting on Crime

Since the legalization of sports betting in Ohio in 2023, there have been several negative consequences that have raised concerns. Two pitchers from the Cleveland Guardians are currently under investigation for allegedly throwing wild pitches to manipulate bets. Additionally, a significant increase has been observed in the number of Ohioans seeking help for problem gambling.

Governor Mike DeWine, who was responsible for signing the law that allowed sports betting, has expressed regret over his decision. A new study conducted by two researchers from Rice University may further support this sentiment. The study reveals that legal sports betting is linked to a substantial rise in crime, particularly assaults following home games where the outcome was unexpected.

The research, published in the Journal of Sports Economics on November 13, found that assaults increased by nearly 93% during the period from the start of games to four hours after their conclusion when compared to the time before sports betting was legalized. Hua Gong and Wenche Wang, the researchers behind the study, highlighted the emotional volatility that can result from sports gambling, which may lead to aggressive behavior.

Methodology and Findings

To determine the relationship between legalized sports betting and crime, the researchers employed a “difference-in-differences” strategy. This method involved comparing crime data from the National Incident-Based Reporting System before and after the legalization of sports betting.

The study focused on markets with teams from the NFL, NBA, MLB, and NHL in 12 states that had legalized sports betting after the U.S. Supreme Court’s decision in 2018. Ohio was not included in the study as it did not legalize sports betting until 2023.

Key findings include:

• The study observed a significant increase in crime between the start of a game and four hours after its conclusion following the introduction of sports betting.
• The impact was more pronounced when the local team played at home, especially if the game’s outcome deviated from the betting odds.
• When a game’s result differed from the predicted odds, it led to more losers than winners, which could contribute to increased aggression among those who lost their bets.

Overall, the researchers noted a 30% to 70% increase in crime between the start of games and four hours after they ended in states that had legalized sports betting.

Broader Implications

The effects of increased crime were more pronounced before the COVID-19 pandemic than during the period when stadiums reopened. However, part of this difference could be attributed to crowd limits and social-distancing measures that were still in place.

Interestingly, the study also found that the increase in crime and violence extended to neighboring states that had not legalized sports betting. This suggests that people traveling to place bets may contribute to higher crime rates in areas where betting is not permitted.

Surprising Results

What surprised the researchers most was that the increase in crime was not confined to states that had legalized sports gambling. Even neighboring states that did not allow betting saw more crime on game days. This could be due to individuals traveling to places where they can place bets and then returning home.

In summary, the study highlights the potential negative consequences of legalizing sports betting, including increased crime rates, particularly in the context of unexpected game outcomes. As the debate around sports betting continues, these findings provide valuable insights into the broader societal impacts of such policies.