Betting retirement on the big game? Gen Z investors are gambling on sports as a financial plan

Around 26% of Gen Z investors are considering sports betting as a primary method for amassing wealth, according to Betterment's fourth annual Retail Investor Survey. The NFL season is set to commence shortly, and this trend is gaining momentum. To place bets, all that's required is a few taps on a smartphone. Sports wagering in the United States reached $166.94 billion last year, with sportsbooks retaining $16.96 billion of that revenue.

In addition to sports betting apps like Robinhood, which introduced prediction markets to attract younger investors, there's a growing sense of financial stress among younger generations. A Northwestern Mutual Planning & Progress study revealed that 32% of Gen Z individuals have either invested in prediction markets or are contemplating it.

Many young investors feel that traditional saving methods are too slow and are drawn to riskier investments, believing they can accelerate their financial progress. However, Betterment CEO Sarah Levy cautions that when these platforms begin to resemble retirement strategies, it becomes problematic. She emphasizes that these products are designed for short-term gains rather than long-term financial security.

Robert Kosciuk, a 32-year-old from New York, has diversified his investments, with a significant portion going towards sports betting. Despite his disciplined approach and disciplined approach, he has managed to generate a profit of approximately $2,500 in 2026 through his wagers. However, he acknowledges that his success is not representative of the majority, as studies have shown that about 69% of users on prediction markets like Polymarket have lost money.

To avoid falling into this trap, it is recommended to allocate a fixed amount for betting, keep it separate from retirement funds, and maintain discipline by ceasing when the allocated amount is depleted. Additionally, ensuring automatic contributions to retirement accounts, such as a 401(k) or IRA, will help secure long-term financial stability.