Mobile Sports Betting Apps Drive Credit Card Delinquency Surge Among Borrowers

Mobile sports gambling is widespread and can lead to delinquency and other credit woes for those who lose money on their sports bets. 

Since 2018, more than 30 states have legalized mobile sports gambling, and this has led to more than $500 billion in sports wagers, according to the Federal Reserve Bank of New York. Mobile sports gambling allows bettors to use applications on mobile phones and web browsers to place their bets.

A staff report also from the Federal Reserve Bank of New York reveals online sports betting can be linked to higher delinquency rates. 

How prevalent is online sports gambling? According to a 2025 survey by S&P Global Market Intelligence, 15% of surveyed U.S. internet adults made a bet in an online sportsbook in the past year. FanDuel and DraftKings are the most popular sportsbooks, and football is the most popular sport for betting. 

Gambling Can Cause Credit Problems

Sports gambling can lead to credit woes and even bankruptcy if gambling debts pile up and bettors are unable to pay back the money they owe after losing sports bets. 

Ashley Morgan, a debt and bankruptcy lawyer in northern Virginia, regularly sees clients who gamble hundreds to thousands of dollars each month.

“Sometimes people do not realize how much they are spending since it is so easy to spend money on apps. Many people don’t use credit cards to gamble, but will use cash/debit cards to gamble and put the other expenses on credit cards. This will result in increasing credit card balances,” Morgan told us.

Gamblers Hope to Win Big

None of Morgan’s gambling clients expect to lose. On the contrary, they plan to win big. 

“With gambling, individuals are hoping to hit big and plan to use that money to pay off debt. But too often the big win never comes or any wins are funneled back into gambling,” Morgan explained to us. 

Because gambling can be an addiction it can be difficult for some sports bettors to stop, especially when making bets on a mobile phone. 

“Gambling is addictive and when you have easy access to gambling on your phone, it can be even more difficult to stop,” Morgan told us. “Gambling on your phone really can just feel like a game and you may not necessarily feel like you are spending your own money.”

Seeing Daily Gambling Problems

Michael McAuliffe, President and Founder of Family Credit Management, said he has seen a big increase in sports gambling among younger clients. 

“When I started working with families about 30 years ago, you might hear about gambling contributing to financial problems once a month or so. Now it’s something that comes up almost every day,” McAuliffe told us. “What’s really changed is how easy it is. You don’t have to go anywhere anymore, it’s right on your phone.”

Sports gambling also is widely advertised and promoted.

“It’s part of watching sports, it’s constantly advertised, and sports books are even built into stadiums now. When you combine that with easy access to credit, it’s very easy for losses to get covered with debt and then grow from there,” McAuliffe told us. 

The Bottom Line

Online sports gambling is legal and available in more than 30 states, and gamblers can make bets on their mobile phones or web browsers. All this betting can lead to credit woes, including delinquency, and add to financial troubles for bettors who lose big. 

Online sports gambling is widespread with more than a $500 billion in sports wagers made since 2018. Fifteen percent of surveyed U.S. internet adults made a bet on an online sportsbook in the past year. FanDuel and DraftKings are the most popular sportsbooks. The most popular sport for betting is football.