The Federal Reserve Bank of New York found that consumer delinquency patterns worsen in states that legalize online sports betting, with participation-linked delinquency rising sharply among bettors. In the Fed’s analysis, overall delinquency increased modestly after legalization, but delinquency among sports betting participants jumped by much more, indicating outsized financial instability among higher-risk users. The report frames implications for younger households most exposed to consumer credit risk—particularly Gen Z and millennials—at a time when household budgeting is already under strain. It also points to expanding sports wagering participation after legalization began following the Supreme Court’s 2018 decision. While the study is not higher education-specific, it directly affects student and family credit stability—an upstream factor for enrollment, persistence, and financial aid outcomes.