Brad R. Humphreys, Jane E. Ruseski and Jie Yang
The question of the extent of complementarity between sports betting and spending on spectator sports viewing is addressed in this chapter using Canadian household spending data. They find that spending on betting and spending on spectator sports are indeed complementary. Intriguingly, they also find that betting and spending on sports participation are substitutes. This suggests that further deregulation of sports gambling in Canada could well lead to less physical activity and more sedentary life styles for Canadians.