This study explored if the academic performance of high schools in Madrid declines after the opening of a new betting house nearby. The researchers compared between schools with and without a new betting house located within 500m. The outcome is schools’ average grade at the standardized state-level exam for university entry. The researchers looked into whether the effect of betting houses is uneven across school types and neighbourhood income levels. The results show that the presence of a new betting house nearby harms the academic performance of public high schools in low-income neighbourhoods. There is no effect on charter schools or public schools in high-income neighbourhoods. This study suggests betting houses increase inequality in education.