More than half of Gen Z investors have redirected money intended for investing into sports betting, according to a Betterment survey of 1,000 U.S. retail investors cited in Fortune. The survey found that 52% of Gen Z investors moved cash into betting in the past year, while 14% said they do so multiple times a month.
Bank of America Institute found that one in five Americans view sports betting as an investment, and among Gen Z that figure rises to two in five. The bank also found that customers across every generation recovered less than 75 cents for every dollar sent to betting platforms each month this year. Gen Z did best, with most getting back more than 80 cents per dollar, but that still left them well short of break-even.
The scale of the habit is growing online. In July, with World Cup betting activity rising, Gen Z and millennials made up 88% of all online betting activity, according to Bank of America. Gen Z alone accounted for 48%, overtaking millennials as the largest generational share of bettors for the first time.
The financial drag shows up elsewhere. Bank of America found that median deposit balances for betting households in 2026 were just 59% of those of non-betting households. A Federal Reserve Bank of New York study found that credit card delinquencies among sports bettors under 40 jumped 26% after legalization.
The survey data also points to a generation that sees more risk and less upside in the traditional path to wealth. Nearly half of Gen Z respondents, 45%, said they are more focused on meeting today’s needs than on saving for the future. Another 65% said their generation faces tougher economic circumstances than previous generations, and 52% said they must take more risks to reach their financial goals.
That is the real story behind the betting boom. The apps are frictionless, the promotions are constant, and the line between investing and gambling is getting harder to see. Natasha Schüll, an associate professor at NYU, said those platforms are making the boundary more porous. Zach Hirsch, a Gen Z podcaster and sports handicapper, told Fortune that many younger men believe they can beat the system.
But the market has already voted. Sportsbooks collect a fee on every wager, and the math is designed to favor the house, not the bettor. When capital that could have been saved or invested gets diverted into a negative-sum game, the taxpayer is not the only loser — the bettor’s balance sheet is, too.
