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Young bettors are becoming a bigger part of the online sports betting market, and new survey findings cited by CNBC suggest the risks may be extending beyond the wager itself.
A Betterment retail investor survey released in August found 66% of Gen Z investors participate in sports betting. Separately, a Bank of America Institute report said Gen Z accounted for nearly 50% of all online betting activity in July, outnumbering millennials for the first time. Experts interviewed by CNBC said that trend raises concerns about both financial stress and gambling-related harm, especially when betting is treated like investing.
Surveys show betting and investing are overlapping for some young adults
The CNBC report said some Gen Z respondents view sports betting as an investment or even part of a long-term financial strategy. Betterment found 52% of Gen Z respondents said they moved money meant for investment to sports betting, while 26% said wagering was part of their long-term financial plan.
That worries financial experts because, as the report noted, the average user on both sportsbooks and prediction markets loses money. Bank of America also found the median deposit account balance for households using online betting was 59% of the balance held by households that did not use online betting.
The article also pointed to prediction markets as another avenue drawing younger users. An August BadCredit survey found 44% of respondents started trading on prediction market platforms in hopes of extra income.
Mental health experts warn losses can spill into school, work, and relationships
CNBC cited clinicians who said the warning signs go beyond losing bets. Cynthia Grant of Birches Health said gambling problems can show up as “functional impairment,” including reduced performance at work or school and strain in family and peer relationships.
Amaura Kemmerer of UWill said even occasional betting among Gen Z college students can have predictable negative effects on academics.
The broader backdrop is rapid expansion. CNBC said sports betting surged after the 2018 Supreme Court decision that opened the door to state-authorized sportsbooks, which have since spread to 30 states. The report also said sports-related event contracts on prediction markets have widened access in places without legal sportsbooks and for users under 21.
Safeguards exist, but experts say risk remains
The report said sportsbooks and prediction market platforms have added age checks, self-imposed limits, and mental health resources. FanDuel imposes monthly deposit limits for users under 26. Polymarket announced optional self-imposed limits and a partnership with Birches Health. Kalshi said it offers risk-management programs for 18-to-21-year-olds after their first trades and donated $2 million in May to the National Council on Problem Gambling.
For players, the clearest takeaway is the one experts emphasized to CNBC: sports betting should not be confused with investing, and chasing losses can deepen both financial and personal harm. Anyone who feels betting is affecting school, work, or relationships may want to use available limit-setting tools or seek problem-gambling support.
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Source: As reported by cnbc.com.
