Sports betting is becoming routine for many Gen Z adults, while surveys show some are treating wagers as investments rather than entertainment. Betterment found that 66% of Gen Z investors surveyed participate in sports betting, and 52% said they had shifted money intended for investing to betting. The concern is financial as well as psychological: most sportsbook and prediction-market users lose money, and attempts to win losses back can deepen the damage.
Betting is moving into everyday sports culture
Betterment’s August survey of retail investors found sports betting among 66% of Gen Z investors. A September report from the Bank of America Institute said Gen Z accounted for almost 50% of online betting activity in July, during the 2026 FIFA World Cup, surpassing millennials for the first time.
Sports wagering expanded after a 2018 U.S. Supreme Court decision allowed states to authorize sportsbooks; the source material says they have since spread to 30 states. Sports-related event contracts introduced on prediction markets in early 2025 widened access further, including in states without legalized sportsbooks and for people under 21. These contracts are presented by platforms as financial trades, a distinction that can make betting resemble investing to young users.
Some young bettors see wagers as investments
The Bank of America Institute found Gen Z respondents were twice as likely as respondents overall to regard sports betting as a type of investment; 20% of respondents overall held that view. Betterment’s survey also found that 26% of Gen Z respondents considered wagering part of their long-term financial strategy.
Dan Egan, Betterment’s director of behavioral finance and investing, said betting can appear alongside conventional investments on the same app or device. But wagers require active decisions and do not work like long-term investments, which can be held over time. That difference matters when money set aside to build savings or invest is redirected toward repeated bets.
Losses can compound financial pressure
The source material reports that the average user of both sportsbooks and prediction markets loses money. Trying to recover those losses by betting again can push users into deeper financial trouble. The Bank of America Institute also found that the median deposit-account balance for households that use online betting was 59% of the balance for households that do not.
Betterment’s survey found that 52% of Gen Z respondents had moved money originally intended for investment into sports betting. Separately, an August BadCredit survey found that 44% of respondents began trading on prediction-market platforms in hopes of earning extra income. Those expectations can be shaped by visible wins: consumer finance expert Erica Sandberg noted that people are more likely to share a quick gain than a substantial loss.
Warning signs reach beyond money
Financial losses are not the only concern. The source material says people who lose the most face the greatest risk of harmful mental-health outcomes, while the development of addiction and need for treatment vary by person. Cynthia Grant, vice president of clinical at Birches Health, described a key warning sign as betting interfering with everyday functioning, including relationships, work or school.
Amaura Kemmerer of UWill said even occasional betting can have predictable negative effects on college students’ academic lives. That makes campus support relevant before someone reaches the point of needing clinical treatment. Grant and Kemmerer said college counseling services should address gambling alongside other addiction concerns, with attention to how often a student bets and why.
Safeguards exist, but do not remove the risk
Regulated sportsbooks and prediction-market exchanges use age-verification tools. DraftKings and FanDuel allow users to set deposit or time limits, and FanDuel imposes monthly deposit limits on accounts held by users under 26. These controls can help constrain activity, but they do not change the underlying risk of treating betting as a reliable source of income.
Platforms have also added support measures. The source material says Polymarket announced optional self-imposed limits and a partnership with Birches Health on Wednesday; Kalshi directs users aged 18 to 21 to risk-management programs after their first trades and donated $2 million to the National Council on Problem Gambling in May. Experts do not describe every wager as harmful, but stress that young bettors should be clear about their motivation and frequency.
Takeaway: For Gen Z, sports betting can threaten savings and wellbeing when it is mistaken for investing or begins to disrupt everyday life.
References
- cnbc.com — “Gen Z sports betting: Financial and mental health risks”
- tradersunion.com — “Gen Z sports betting growth raises financial and mental health risks in the U.S”
- linkedin.com — “Gen Z Shifts Money from Investments to Sports Betting”
- mghclaycenter.org — “Online Sports Gambling Among Gen Z Youth – Clay Center for Young Healthy Minds”
- aibm.org — “How sports betting can harm young men – American Institute for Boys and Men”
