New legalized states and additional betting options have led to more users turning to the world of sports betting.
Though sports betting can result in big wins, it also entails losses and valuable lessons. Several people on social media quickly learned that sports betting may not be for everyone.
What Happened: Benzinga regularly shares large sports betting parlays wins, like a bettor winning $500,000 on a $5 bet when 14 different National Football League players scored touchdowns in the same weekend.
However, not all attempts at leveraging sports betting for financial gain are successful. For instance, a 24-year-old social media user’s attempt to use sports betting to pay off $50,000 in student loans did not go as planned.
As reported by the Wall Street Journal, Jamie Regan posted a TikTok telling the world he would begin sports betting to pay off the loans. The video got over one million views, which to Regan was a moment of destiny.
Instead, three months later, the TikTok series of betting videos is done and Regan lost $30.
Regan isn't the only one using sports betting as a way to try and pay off student loans.
"It's a bigger thing for people, especially our age, who are feeling the effects of a heightened economy and having less money," Regan told the WSJ. "It seems like we're kind of getting the short end of the stick."
Regan won on several bets and hoped to get a sponsorship from a sports betting company before eventually throwing in the towel on his TikTok series.
"Sports betting is kind of like those rigged games at a carnival. You know you're not supposed to win but you still feel like you can."
While Regan's sports betting efforts to pay off loans didn't work out, it has for others.
A student loan was paid off by 29-year-old Kale Daniels through sports betting. The Arizona State University graduate had $7,000 in student loans and was drawn to sports betting after seeing an ad on television.
"Maybe I should try sports betting," Daniels recalled.
Daniels started with $5 to $10 bets on football and basketball and later increased his wagers to $20. Daniels won $,1600 from a first basket parlay in basketball. It was the 2022 Super Bowl (Super Bowl LVI) won by the Los Angeles Rams that helped Daniels reach his goal, with winnings of around $1,500 from the game. Daniels was able to pay off his student loans.
There is also Ethan Bainbridge from Michigan, who has paid off a good chunk into his student loan through sports betting. Starting with debt of $32,000, Bainbridge has been able to use consistent betting revenue to reduce his debt to around $13,000.
"I can go to bed at night knowing that I can still buy myself dinner the next day, I can still pay for my car, I can still pay my rent," Bainbridge, who hopes to have his loans paid off by 2030, said.
Why It's Important: For many people, student loan debt and the monthly payments can be a tough burden, especially during periods of higher inflation. Turning to sports betting is one way people are trying to bring in additional money. The WSJ report even highlights that legendary investor Carl Icahn played poker and used winnings to partially pay for his education at Princeton.
Others have turned to side jobs or extra sources of income to help pay off student loans.
Student loan debt in the United States is $1.7 trillion, according to the report, citing data from the Federal Reserve.
President Joe Biden paused student loan payments during the COVID-19 pandemic and has also cancelled billions of dollars in loans.
Sports betting growth has exploded and the report said that it remains popular, especially with younger users.
Like many things in life, the important thing is to know when to walk away and also to never bet more than you can afford.
Read Next: How to Pay Off Student Loans: A Step-By-Step Guide
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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