A growing number of younger Americans are placing sports betting alongside more traditional financial activities, according to new research from personal finance platform Betterment. The findings suggest that some members of Generation Z are increasingly viewing sports wagering as part of their broader approach to managing money and pursuing financial goals.

The survey, which polled 1,000 U.S. retail investors, found that 26% of Gen Z respondents consider sports betting a planned and ongoing element of their long-term financial strategy. That figure stood well above the levels reported by older generations, with 14% of millennials, 6% of Generation X and 1% of baby boomers expressing the same view.

The results point to changing attitudes toward investing, risk and wealth accumulation among younger adults as legal sports betting and prediction market products continue to expand across the United States.

Younger Investors Shift Funds Toward Betting Activities

One of the survey’s notable findings involved how younger investors allocate their money. More than half of Gen Z participants reported moving funds that had originally been intended for investing into sports betting during the previous year. Among them, 14% said they redirected investment money toward betting multiple times each month.

Participation rates also differed significantly across age groups. Only around one-third of Gen Z respondents said they do not engage in sports betting at all, while 63% of investors surveyed across all generations reported no involvement in sports wagering.

Betterment Chief Executive Officer Sarah Levy expressed concern about the growing overlap between gambling products and long-term financial planning.

“When a prediction market or sportsbook starts to feel like a retirement strategy, we have a problem,” said Levy in a statement cited by Bloomberg. “These products are designed to keep people seeking the next quick score, not to help them build toward the next decade.”

The findings arrive as legal sports betting has developed into an industry approaching $17 billion in the United States. At the same time, prediction markets have expanded rapidly and become increasingly accessible through platforms that many consumers already use for financial activities.

Technology Platforms Blur Traditional Distinctions

Industry developments have contributed to the growing connection between investing and wagering among younger consumers. Companies that initially focused on stock trading have expanded into adjacent products, creating environments where investment decisions and event-based predictions can exist within the same application.

Robinhood Markets Inc., known for targeting younger investors with accessible stock trading tools, introduced prediction markets within its platform in 2025. According to the company, that business has become the fastest-growing division in its history.

The availability of brokerage accounts, sportsbooks and prediction market products on smartphones has also changed how users interact with risk-based financial decisions. Investors can now move between these activities without switching platforms or services.

According to the survey analysis, this convergence may contribute to younger investors viewing betting and investing through a similar lens. Both involve research, risk assessment and the possibility of financial gain, even though the underlying mechanics and long-term outcomes differ substantially.

Economic Pressures Influence Financial Decisions

Broader economic conditions appear to be shaping attitudes as well. Rising living costs and ongoing housing affordability challenges have made traditional wealth-building milestones more difficult to achieve for many younger Americans.

As a result, some individuals who feel financially behind are exploring speculative opportunities that they believe could accelerate their progress. Sports betting, prediction markets and cryptocurrency investments have all attracted interest from consumers seeking potentially faster returns.

A separate Northwestern Mutual Planning & Progress study cited in the reporting found that many younger adults associate speculative investments with efforts to improve their financial position. The study reported that 80% of Gen Z respondents who already use or are considering speculative investments said concerns about falling behind financially played a role in that interest.

The Betterment survey also examined how investors make financial decisions. More than half of respondents, 56%, said they rely primarily on their own research and judgment when developing a financial strategy. Confidence in self-directed decision-making increased with age, rising from 40% among Gen Z participants to 69% among baby boomers.

Artificial intelligence also emerged as an influential source of guidance. Approximately one-third of survey participants said they trust AI-generated financial advice. Among those individuals, 53% reported that AI had influenced a financial decision they otherwise would not have made. The impact appeared particularly strong among younger investors, with 48% of Gen Z respondents saying AI had shaped a financial choice.