More than half of Gen Z investors have funneled cash into sports betting—but they’re not coming close to breaking even
Two in five Gen Zers view sports betting as an investment, but bettors in every generation are losing money. Researchers say the story is more complicated than financial nihilism.
As online sports betting grows in popularity, many Gen Z investors are treating it as an investment strategy. Research from the Bank of America Institute shows that while one in five Americans view sports betting as an investment, that figure doubles to two in five among Gen Z. A Betterment survey of 1,000 U.S. retail investors found 52% of Gen Z investors redirected money for investing into sports betting in the past year, with 14% doing so multiple times a month.
However, sports betting is largely a losing game due to the vig, or fee, sportsbooks add to every wager, making it difficult for series of bets to turn a profit. BofA found that customers across generations recover less than 75 cents for every dollar they send in monthly, with Gen Z faring best at more than 80 cents per dollar. The ease of using digital platforms also contributes to frequent betting, with nearly a quarter of sports bettors wagering daily and another third betting weekly.
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