Gen Z Is Blurring the Line Between Gambling and Investing — Here's What It's Costing Them
Sports betting used to be just fun and games. However, new research has found that more Americans, particularly Gen Z, are starting to view it more like an investment.
According to the Bank of America Institute, one in five Americans considers sports betting a form of investing. For Gen Z, that number is two in five. The study also discovered that bettors typically recovered less than 75 cents for every dollar they transferred to online betting platforms in 2026.
Explore More: 3 Tough Money Conversations Gen Z Has Avoided and How To Start Them Before the End of 2026
Don’t Wait: Start Growing Your Net Worth With Smarter Tracking
Here’s a closer look at Gen Z’s sports betting habits and what it says about their approach to investing.
Gen Z's Sports Betting Habits
Gen Z accounted for 48% of online betting activity among Bank of America customers in July 2026, passing millennials, who accounted for 40%.
The generation is also betting more frequently. The Betterment 2026 Retail Investor Survey of 1,000 investors found that 52% of Gen Z investors have redirected money intended for investing toward sports betting, which is a form of gambling. About a quarter also believe sports betting should be part of their long-term investment strategy.
While there’s growing interest, the financial returns don’t back it up. Bank of America concluded that Gen Z bettors recovered more than 80 cents for every dollar transferred to online betting platforms. That’s more than any other generation, but still less than what they put in.
Betting households also have less money to rely on. The median deposit balance for betting households in 2026 was just 59% of non-betting households, according to the Bank of America Institute survey. Despite this, betting households also reported higher rates of card spending in July than non-betting households for both discretionary and necessity items.
Sports Betting vs. Investing
Gen Z’s sports betting habits indicate that some prioritize the possibility of quick returns over slow growth. Unlike traditional investing, which requires more time to build wealth, sports betting offers a more immediate payout if you win.
Some bettors may believe that their knowledge of the game gives them an edge when predicting game outcomes, but finance experts don’t agree. Personal finance guru Dave Ramsey said that the “fastest-growing addiction that is destroying young men in their 20s is online sports gambling.”
Both sports betting and investing involve risk, but they couldn’t be more different. Investing involves taking more calculated risks that pay off over a long period of time. Sports betting involves taking risks that aren’t likely to pay off at all. You also have less control, and outcomes depend on chance.
For Gen Z, using money intended for investing to place sports bets can mean missing out on years of potential growth. However, CNBC Make It also noted that the youngest adult generation has started investing earlier and diversifying their assets at higher rates than older generations.
Treating sports betting as entertainment rather than an investment strategy could help younger investors stay on track.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion: