Abstract

This research investigates the effect sports betting legalization on percapita personal consumption expenditure on recreational services in the U.S. As at the year 2023, 37 of the 50 U.S. sates had legalized Sports betting. Using repeated cross-sectional data, and Panel data, are estimated four separate difference-in-difference regression models. The repeated cross-sectional data consists of all states the have legalized sports betting over the years (as the treatment group), and all others states the have not legalized sports betting as the control group). The panel data, which span the period 1997-2022 and consists of all states that legalized sports betting in the year 2018 as the treatment group and all other states at the control group. In some of regressions, the year 2020 was moved to control for the effects of the COVID-19 pandemic. My results show negative average treatment effects for states that legalized sports betting. Meaning, average percapita personal consumption expenditure lower for states that legalized sports betting in 2018 compared to those that did not. This result is counter intuitive but was also found in one of the two models ran with the repeated cross-sectional data. Thus, I conclude that states that legalize sports betting may see lower personal consumption spending on recreation services compared to those that do not.

Advisor

Luri, Moses

Department

Business Economics

Disciplines

Business

Keywords

Sports Betting, Personal Consumption

Publication Date

2024

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis

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