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The Impact of Legalized Sports Betting on Divorce

Author

Listed:
  • Alvaro Muniz-Fernandez

    (University of Oviedo)

  • Brad Humphreys

    (West Virginia University)

  • Jane E. Ruseski

    (West Virginia University)

Abstract

This paper estimates the causal effect of legalization of sports betting on marital dissolution. We exploit the staggered legalization of sports betting in states following the Murphy v. NCAA (2018) Supreme Court as a source of exogenous variation, using a U.S. state-year panel from 2012 to 2023. Implementing a difference-in-differences design, we find that legalization increases both the flow and stock of divorces: the annual divorce rate and the share of divorced men rise by 0.107 and 0.276 percentage points, respectively. These effects accumulate gradually over the post-treatment period, consistent with a mechanism operating through the slow deterioration of household finances and marital relationships. Our findings suggest that the social costs of sports betting legalization extend beyond individual financial and mental harm to include measurable disruptions to family structure.

Suggested Citation

  • Alvaro Muniz-Fernandez & Brad Humphreys & Jane E. Ruseski, 2026. "The Impact of Legalized Sports Betting on Divorce," Working Papers 26-06, Department of Economics, West Virginia University.
    • Handle: RePEc:wvu:wpaper:26-06
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    File URL: https://researchrepository.wvu.edu/cgi/viewcontent.cgi?article=1262&context=econ_working-papers
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    Keywords

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    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • K36 - Law and Economics - - Other Substantive Areas of Law - - - Family and Personal Law
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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