NerdWallet's Smart Money Podcast
Rolling the Dice: Can Sports Betting Really Pay Off Like the Stock Market?
Oct 23, 2024
In this engaging discussion, Sam Taube, an investing expert at NerdWallet, sheds light on the stark differences between sports betting and the stock market. He stresses the addictive nature of gambling and the financial risks involved. The conversation dives into how long-term investing offers consistency in returns while sports betting can lead to impulsive decisions. Additionally, the hosts tackle the booming sports betting industry’s growth and legal aspects, highlighting the socio-economic implications and the need for financial responsibility.
13:15
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Quick takeaways
- Sports betting differs significantly from investing in the stock market, primarily due to the inconsistency of returns and the potential for addiction.
- Managing the financial risks of sports betting requires setting strict boundaries and treating wagering as a controlled entertainment expense.
Deep dives
The Rise of Sports Betting
Sports betting has experienced substantial growth following the 2018 Supreme Court decision that lifted the federal ban, allowing states to legalize it. Currently, 38 states, along with Washington D.C. and Puerto Rico, have legalized sports betting, with 30 states permitting bets via mobile apps. Research from Goldman Sachs indicates that this industry has reached a $10 billion valuation, with projections estimating it could grow to $45 billion annually. This rapid expansion has also impacted the stock market, as exemplified by the surge in DraftKings' stock price since it became public in 2020.
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