Many Americans view sports betting as investment, but returns are poor, especially for Gen Z
Bank of America research shows that one in five Americans consider sports gambling an investment, with Gen Z at two in five. Bettors recover less than 75 cents per dollar wagered, and Gen Z recovers about 80 cents. Betting has become a daily habit for nearly a quarter of bettors, and lower-income households are the largest group.
Sign-ups for betting platforms tripled between January and June-July, driven by the World Cup and new prediction-market offerings. During that tournament, prediction-market wagers expanded from 9% to 27% of all legal U.S. sports-betting volume. Younger adults dominated the surge, with Gen Z and millennials accounting for 88% of July activity; Gen Z alone represented 48%, overtaking millennials as the top generational share for the first time.
Financially, betting households held median deposit balances equal to only 59% of non-betting households, yet their card spending grew faster in both essential and discretionary categories. A New York Fed study found credit card delinquencies among bettors under 40 rose 26% after legalization, even in states where betting remained illegal. Regulatory uncertainty persists, as the CFTC treats event contracts as federal derivatives while states call them gambling, a dispute heading to the Supreme Court; Kalshi recently removed its injury markets at the CFTC's request.
This trend could deepen financial strain among younger and lower-income households, who already show thinner savings and rising delinquency rates. If betting is increasingly framed as an investment, it may normalize high-risk behavior as a wealth-building strategy, potentially eroding long-term financial security. The regulatory split between federal and state authorities could create inconsistent consumer protections, leaving bettors vulnerable to shifting legal landscapes. Society may see a widening gap between those who can absorb losses and those who cannot.