Balancing Acts: Evaluating the Economic Benefits and Social Costs of Legalized Sports Betting in Pennsylvania

Matlak, Alexander

Balancing Acts: Evaluating the Economic Benefits and Social Costs of Legalized Sports Betting in Pennsylvania

Persistent URL

https://hdl.handle.net/10456/59222

Author(s)

Matlak, Alexander

Date Issued

April 7, 2025

Abstract

As legalized sports betting expands across the United States, policymakers and economists are increasingly interested in understanding its broader implications. This paper investigates the economic and social effects of sports betting legalization in Pennsylvania, using a mixed methods approach supported by a Difference in Differences regression model. The analysis compares Pennsylvania to West Virginia and Ohio, leveraging their staggered legalization timelines to isolate the impact on state tax revenue. The study incorporates key controls for betting handle and population, ensuring revenue changes reflect policy effects rather than market size or wagering activity alone. Results show Pennsylvania experienced the highest revenue gains relative to other states, emphasizing the importance of early adoption and infrastructure investment. The paper also uses qualitative research to highlight growing concerns around problem gambling and public health. Taken together, the findings offer a more complete picture of sports betting’s dual impact and provide grounded policy recommendations for responsible regulation, reinvestment, and oversight.

Major

Business

First Reader(s)

Navarro-Sanchez, Francisco