Recent data shows a significant rise in sports betting participation among Generation Z, prompting concerns from financial and mental health experts. A survey by Betterment, published in August, indicates that 66% of Gen Z investors engage in sports betting. Additionally, a report from the Bank of America Institute in September revealed that nearly 50% of all online betting activity during July, coinciding with the 2026 FIFA World Cup, was conducted by Gen Z, surpassing millennial participation for the first time.

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Cynthia Grant, vice president at Birches Health, which focuses on online gambling addiction therapy, remarked that possessing sports betting accounts like those on DraftKings or Kalshi is becoming more commonplace than not. The surge in sports betting followed the 2018 U.S. Supreme Court ruling that allowed state-sanctioned sportsbooks, which have since become available in 30 states. The introduction of prediction markets with sports event contracts in early 2025 has further broadened access, including for individuals under 21.

Financial advisors are increasingly wary of sports betting practices due to the high likelihood of losses. Many users of sportsbooks and prediction markets lose money, with those facing substantial losses at higher risk for mental health issues. The Bank of America survey found that Gen Z is twice as likely as other age groups to consider sports betting as a form of investment, with over half of Gen Z respondents having diverted funds initially designated for investment towards sports betting.

Management of sportsbooks, including DraftKings and FanDuel, typically classify their services as entertainment, not investments. Contrary to that, Dan Egan, director of behavioral finance at Betterment, pointed out the dangers of treating sports betting like traditional investments, emphasizing the active involvement required in betting compared to passive long-term investments.

Furthermore, a survey by BadCredit reported that 44% of respondents turned to prediction markets seeking additional income, despite the understanding that many sportsbook users ultimately lose money. Erica Sandberg, a consumer finance expert, noted that individuals often share their wins but remain silent about losses, creating a misleading narrative around profitability.

The development of a sports betting addiction varies across individuals, with common warning signs including impairments in academic and social functioning. Amaura Kemmerer from UWill highlighted that the natural risk-taking tendencies in young individuals contribute to a higher likelihood of engaging in sports wagering. Both Kemmerer and Grant recommend enhancing support services on college campuses to address potential gambling issues.

In response to concerns, betting platforms have implemented measures such as age verification and limits on deposits and time spent. For example, FanDuel allows self-imposed limits for users and restricts monthly deposits for those under 26. Kalshi has initiated partnerships with mental health organizations to provide resources for young users and contributed $2 million to the National Council on Problem Gambling.

Experts emphasize that while not all sports betting is detrimental, clarity regarding motivation and frequency is essential, especially for younger demographics. Dan Egan noted that many people partake in betting for enjoyment rather than profit.

For those struggling with gambling addiction, the National Council on Problem Gambling hotline is available at 1-800-522-4700.