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Gen Z has become the biggest user group in sports betting

As Gen Z sports betting surges across the U.S., new data shows the trend is increasingly overlapping with investing behavior. According to an August survey by Betterment, 66% of Gen Z investors take part in sports betting.

A September report from the Bank of America Institute painted a similar picture. The institute found that in July, when the 2026 FIFA World Cup was being played, nearly half of online betting activity came from Gen Z, marking the first time this cohort surpassed millennials.

Experts say betting platforms have become a routine part of the sports-watching experience for younger users. But they warn that this spread could increase financial pressure as savings are put at risk and losses are chased.

Why does sports betting feel like investing?

According to Betterment, 52% of Gen Z respondents said they had redirected money originally set aside for investing into sports betting. Another 26% said they viewed betting as part of their long-term financial strategy.

The Bank of America Institute said Gen Z is twice as likely as the overall sample to see sports betting as an investment type. While that figure stood at 20% in the broader sample, a similar investment mindset also stood out among younger users of event contracts in prediction markets.

Behavioral finance expert Dan Egan says the confusion is reinforced by the fact that sports betting sits in the same app or on the same phone screen as traditional investments. Sports betting companies describe their products as entertainment, while prediction market platforms classify event contracts as financial derivatives.

What steps expanded market access?

In the U.S., sports betting spread rapidly after the Supreme Court opened the door to state-approved betting operators in 2018, and the system has since reached 30 states. The addition of sports-linked event contracts to prediction markets in early 2025 further expanded access in states without legal sports betting and for users under 21.

Data points to rising financial pressure

According to bank data, the median deposit balance of households using online betting was only 59% of that of households that did not. In an August survey by BadCredit, 44% of respondents said they started trading on prediction markets in hopes of earning extra income.

Experts stress that the average user loses money in sports betting and prediction markets, and that trying to win back those losses can make finances even worse. They also say users suffering the biggest losses face a higher risk of harmful mental health outcomes.

What safeguards are platforms using?

Regulated sports betting and prediction market platforms offer age verification tools as well as options for users to set their own limits.

  • FanDuel and DraftKings offer optional deposit and time-spending limits.
  • FanDuel applies a monthly deposit cap to user accounts under age 26.
  • Polymarket said it provides optional limits and access to mental health resources.
  • Kalshi directs users aged 18 to 21 into risk management programs after their first trades.

Experts say not every sports betting habit is automatically harmful, but motivation and frequency of play should be monitored closely, especially among young people. There is also growing support for college counseling services to treat this area like other forms of addiction.

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