Generation Z Embraces Sports Betting Amid Growing Concerns Over Mental Health
- 66% of Gen Z investors engage in sports betting, with nearly 50% of online betting activity in July 2025 attributed to them.
- Gen Z is twice as likely as the general population to consider sports betting an investment, with significant funds diverted from traditional investments.
- Experts raise alarms over potential mental health impacts, urging college campuses to treat gambling addiction seriously.
Wagering on sports outcomes has rapidly increased in the 2020s. Recent surveys highlight the extensive participation of Generation Z in gambling activities. A survey by Betterment, an investment advisory platform, released in August 2025, revealed that 66% of Gen Z investors are involved in sports betting. Furthermore, a report by the Bank of America Institute indicated that in July 2025, nearly 50% of all online betting activity during the 2026 FIFA World Cup was conducted by Gen Z, surpassing millennial participation for the first time.
Cynthia Grant, vice president of clinical at Birches Health, noted, “It is more unusual for someone not to have… a DraftKings account… than it is.” This perspective emphasizes how deeply embedded sports betting has become in the sports viewing experience. Following the 2018 U.S. Supreme Court decision that allowed state-sanctioned sportsbooks, the number of states with legal sports betting has risen to 30. The introduction of sports-related event contracts on prediction markets in early 2025 further broadened access to those under 21 and in states without legalized sportsbooks.
The rise of sports betting has prompted concern among financial and mental health advisors. Studies indicate that individuals participating in both sportsbooks and prediction markets typically incur losses, and attempts to recover these losses often lead to even greater financial challenges. Experts caution that those with the largest losses are most at risk for negative mental health consequences.
Gambling as Investment
The Bank of America Institute survey revealed that Generation Z is twice as likely to perceive sports betting as an investment compared to just 20% of respondents overall. In Betterment’s survey, 52% of Gen Z participants admitted to reallocating funds originally intended for investments into sports betting, while 26% considered wagering part of their long-term financial strategy.
Management at sportsbooks like DraftKings and FanDuel typically frame their offerings as entertainment rather than investments, while prediction market platforms characterize their event contracts as financial derivatives. Dan Egan, director of behavioral finance at Betterment, noted the growing overlap between sports betting and traditional investments, as both increasingly appear on the same digital platforms.
This conflation is particularly concerning, as managing sports wagers necessitates more active engagement compared to long-term investments. Egan pointed out the crucial differences: “It’s not an asset that grows with the economy,” he stated, contrasting it with investments that typically appreciate over time. Bank of America found that households engaged in online betting maintained a median account balance significantly lower than those who did not participate in such activities.
In a survey conducted by BadCredit in August 2025, 44% of respondents reported they began trading on prediction market platforms in pursuit of additional income, despite the fact that most users end up losing money. Consumer finance expert Erica Sandberg highlighted this discrepancy, stating, “People tend to tell other people how much money they’ve made,” while the losses often remain unspoken.
Mental Health Worries
The onset and severity of sports betting addiction can differ among individuals. Cynthia Grant indicated that when gambling interferes with a person’s daily functioning and social interactions, it signals a problematic development. “They lose time on work, they lose time in school,” she explained.
Young adults are particularly susceptible to gambling, partly due to biological factors that heighten risk-taking behavior. Amaura Kemmerer of UWill remarked that even casual betting often negatively impacts academic performance among Gen Z college students. Both Kemmerer and Grant advocate for enhanced support within college counseling services to address gambling addiction, equating it with other forms of addiction.
Betting platforms have attempted to reduce risks through various features, including age verification and self-imposed limits on deposits and time spent gambling. Notably, FanDuel and DraftKings have implemented monthly deposit limits for users under age 26, and Kalshi has launched initiatives aimed at guiding younger users toward responsible trading practices.
Experts acknowledge that not all forms of sports betting are detrimental, but they emphasize the importance of understanding the motivations and frequency of participation, especially among younger demographics. “Lots of people do it to make things more interesting,” Egan stated, reinforcing the necessity to perceive betting as entertainment rather than investment.
If you or someone you know has a gambling addiction, call the National Council on Problem Gambling hotline: 1-800-522-4700.
News Courtesy of CNBC
