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On the one hand, a growing literature analyzes the individual characteristics that draw people to addictive behaviors [7, 17–20]. Nevertheless, the somewhat vague Spanish Law 13/2011 was far from closing the debate about gambling companies' taxation and its potential negative externalities. This expansion increased Madrid citizens' exposure and accessibility to gambling facilities, and regardless of the ban on underage gambling, also its popularity among teenagers: adolescents' gambling prevalence increased by 30% in Spain between 2016 and 2019 [2, 33]. Understanding high schools as aggregate units of individual-level behavior, which respond to contextual factors such as the supply of gambling facilities, we draw on administrative data to measure high schools' educational performance. This design hinges on the assumption that treated and non-treated high schools followed a similar educational performance trend before the betting houses opened-also known as the parallel trends assumption. This harm is only present among public high schools in low-income areas. Compared to other public high schools situated in low-income areas, we find that those high schools located less than 500m from a new betting house decrease their average grade by 0. Furthermore, we expect that gambling's adverse effects are less detrimental for children from more advantageous families.

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