TLDR:
- Betterment found 52% of surveyed Gen Z investors shifted investment funds to sports betting in the past year.
- About 26% of Gen Z investors called sports betting part of a long-term strategy, versus 14% of millennials.
- U.S. sportsbooks handled $166.94B in legal wagers during 2025 and generated $16.96B in sportsbook revenue.
- Northwestern Mutual found 32% of Gen Z adults use or consider sports betting, nearly double the 17% U.S. rate.
More than half of surveyed Gen Z investors redirected money intended for investments into sports betting during the past year, according to Betterment. Specifically, the 2026 Retail Investor Survey found that 52% had moved investment funds into sports wagers at least once over that period.
The findings suggest that sports betting is increasingly competing with traditional investing for money among younger participants already active in financial markets. To measure that shift, Betterment surveyed 1,000 U.S. retail investors between March 27 and April 3, with roughly equal representation across four generations.
Participants needed at least one qualifying investment, while respondents whose only investment was a 401(k) were excluded. Among Gen Z respondents, 26% described sports betting as a deliberate part of their long-term financial strategy.
That share was higher than millennials at 14%, Gen X investors at 6%, and baby boomers at only 1%. Meanwhile, 14% of younger respondents said they redirected investment money into betting several times each month. Only about one-third of surveyed Gen Z investors said they did not participate in sports betting at all.
Sports Betting Takes a Larger Share of Gen Z Investment Money
The shift is occurring as legal sports wagering has become a large U.S. market since the Supreme Court’s 2018 ruling. Americans legally wagered $166.94 billion on sports during 2025, according to the American Gaming Association, representing an 11% annual increase.
Sportsbooks generated $16.96 billion in revenue, up 22.8%, while states collected $3.71 billion in related taxes. The market remained substantial in 2026, with regulated sportsbooks handling $12.06 billion in wagers during May alone.
Those operators generated $1.34 billion in May revenue, although both measures declined slightly from a year earlier. The growth consequently places sportsbooks alongside brokerage, crypto, and prediction-market platforms within the broader digital financial environment used by younger consumers.
Financial Pressure Pushes Younger Investors Toward More Risk
Northwestern Mutual’s 2026 Planning & Progress Study found 32% of Gen Z adults used or considered sports betting and prediction markets. That compared with 17% of U.S. adults overall, showing a clear generational gap in interest toward speculative financial activity.
Among younger respondents attracted to speculative investments, 80% said they felt financially behind and believed higher-risk products could accelerate progress. Betterment also found social media had become the leading financial-news source among surveyed Gen Z investors.
Its use rose from 45% in 2024 to 60% in 2026, while 48% said artificial intelligence influenced a financial decision. Research cited in the data also points to longer-term financial consequences when betting replaces saving or investing.
An NBER study found sports-betting legalization could reduce savings and investment while increasing credit-card borrowing among financially constrained households. The SEC’s Investor.gov notes that investing earlier provides more time for compounding, including returns earned on previous gains.
Overall, the survey shows that for many surveyed Gen Z investors, sports betting is increasingly being treated as part of financial planning.
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