Sports betting has seen a dramatic rise among Generation Z, fueled by the proliferation of online sportsbooks and the introduction of prediction markets. According to a survey by Betterment, 66% of Gen Z investors participate in sports betting, while a Bank of America Institute report found that Gen Z accounted for nearly 50% of all online betting activity in July 2026, surpassing millennials for the first time during the 2026 FIFA World Cup [1]. This shift marks a significant change in the demographic landscape of sports betting.
Financial and mental health experts are expressing growing concern over this trend. The average user on both sportsbooks and prediction markets loses money, and those who lose the most are at greater risk for developing gambling problems, which clinicians report are increasing among young people [1]. Cynthia Grant, vice president of clinical at Birches Health, noted that having accounts on platforms like Kalshi and DraftKings has become commonplace among Gen Z, making sports betting an integral part of the sports viewing experience [1].
Surveys reveal that Gen Z is more likely than other generations to view sports betting as a form of investment. The Bank of America Institute found that Gen Z was twice as likely to see sports betting as an investment compared to 20% of respondents overall [1]. In Betterment's survey, 52% of Gen Z respondents admitted to moving money originally intended for investment into sports betting, and 26% considered wagering part of their long-term financial strategy [1].
The expansion of sports betting was accelerated by a 2018 U.S. Supreme Court ruling allowing state-authorized sportsbooks, now present in 30 states. The introduction of sports-related event contracts on prediction markets in early 2025 further broadened access, including to those under 21 and in states without legalized sportsbooks [1]. Despite the entertainment framing by sportsbook operators like DraftKings and FanDuel, and the financial derivative positioning by prediction market platforms, experts warn that the financial and mental health risks are significant, especially for those who attempt to recover losses through further betting [1].
CONCLUSION
The rapid adoption of sports betting by Gen Z, coupled with their tendency to view it as an investment, is raising alarms among financial and mental health professionals. With a high proportion of young users losing money and at risk for gambling-related problems, the market faces significant concerns about the long-term impact on this generation's financial well-being.