Gen Z increasingly sees sports betting as an investment

For a growing number of Gen Z investors, “diversifying the portfolio” means adding another few legs to their same-game parlay.

Recent data shows a growing share of younger Americans are treating sports betting as a key part of their long-term financial strategy.

Betting on the future

Two-thirds of Gen Z investors (66%) also participate in sports betting, according to an August Betterment survey. Among those bettors, 52% said they’ve redirected money originally earmarked for investing toward wagers instead, while 26% consider sports betting part of their long-term financial plan.

Additionally, a September Bank of America Institute report found 40% of Gen Z considers sports betting a form of investment, compared to 20% of respondents overall.

They’re putting that belief into practice. Gen Z surpassed millennials in online betting for the first time this summer, accounting for nearly half of all online betting activity in July amid the World Cup.

But the odds aren’t in their favor

Bank of America’s latest report analyzed betting-related money flowing in and out of customers’ bank accounts, and found bettors received less than 75 cents back from sportsbooks for every $1 they sent over—a 25% haircut before even considering what that money could have earned elsewhere.

Online bettors also held median bank deposit balances roughly 40% lower than households that didn’t bet online.

And the downside isn’t limited to bank accounts. Mental-health professionals warn problematic sports betting can spill into work, school, and relationships, especially as gambling becomes more deeply woven into how younger fans watch sports.

Worth mentioning: An estimated 70% of all sports gamblers are men, a rate which experts say also roughly applies to the Gen Z demographic.