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Gen Z investors increasingly use sports betting to build wealth
A Betterment survey of 1,000 US retail investors found 26% of Gen Z want sports betting as a primary wealth plan, with 52% saying they diverted money meant for investing into bets.
Gen Z retail investors are increasingly turning to sports betting and prediction markets as a personal wealth strategy, according to findings cited in a Yahoo Finance report. The Betterment fourth annual Retail Investor Survey found that 26% of Gen Z investors say they want to bet on sports consistently, and that they view betting as a meaningful part of their broader financial plan.
The survey also highlights how investors are financing those bets. More than half of Gen Z respondents, 52%, said they have at some point in the past year taken money they planned to invest and instead placed it on sports, with 14% of millennials saying they do it several times a month.
The report points to the role of smartphone access and the size of the US sports wagering market. It says Americans legally wagered $166.94 billion on sports last year, and sportsbooks kept $16.96 billion as revenue, citing the American Gaming Association.
Finally, the report links the trend to financial pressure and interest in higher risk strategies. It cites a Northwestern Mutual Planning & Progress study showing 32% of Gen Z have put money into prediction markets and sports betting, or were considering doing so, and notes that among US adults drawn to high-risk assets, three-quarters said it is because they feel financially behind.