The study assessed effects of sport betting on youth economic development jr~ Kalerwe Trading Center in Uganda with four specific objectives; to find out how unemployment affect youths economic development, to find out how poverty affect youths economic development, to find out how drug abuse affect youths economic development and to determine the relationship between effects of sport betting and youth economic development. It was hypothesized that “there is no relationship between effects of sport betting and youth economic development.” Descriptive and correlational research designs were used. The data was gathered from 94 youth respondents using random sampling technique with a self-administered questionnaire. The results indicate a high grand mean and standard deviation (ii=3.15, S.D0.756) which implies that there is high level of unemployment among the youth which lead to low economic development as a result of gambling. Also, the findings indicates a high grand mean and standard deviation (ji=3.25, S.D0.701) which means that there is high poverty level among the youth which result to low economic development as a result of sport betting. In addition, the outcome indicates a high grand mean and standard deviation (j.t=285, S.D0.876) which reveals that there is high drug abuse rate experienced among the youth which affects their economic development due to sport bet gambling in Kalerwe. Finally, the null hypothesis was rejected and its alternative positive hypothesis was considered because the P value (0.000) was less than the Alpha c~ value (0.0l).therefore, the high correlation coefficient of r=0.676** indicates that there was a significant and strong relationship between effects of sport betting and youth economic development in Kalerwe trading center. And this implies that there is significant involvement of the youth in sport bet gambling, which thereafler it highly xi affects the youths’ economic development making them dwell more in unemployment, poverty and drug abuse. Therefore, the possible recommendations were that; the government should ensure that the youth get involved in better economic ventures apart from sport bet gabling. This can be achieved if strict laws are put in place to control the betting trend of the youth. Thus, the govermuent should put limits in terms of betting time to be only in the evening hours between 6pm and 8pm to ensure that the youth search for better and respectful forms of employment. Government should provide the youth with better business environment by setting better market and provide the youth with business funds. The youth to be guided and advised about the effects of gambling by both parents, government leaders, local leaders and religious leaders. The government to try and reduce the high rate of poverty in the area under this study through creating employment and work opportunities for the youth. Youth to venture into entrepreneurship sector and also get more knowledge through fom’Di education system. Govermnent to crack down those who peddle drugs in the study area and charge them accordingly. Guidance services to be provided to the youth about the effects of drug abuse. Those already addicted to be taken to rehabilitation centers for treatment in order to make them recover.