Why Gen Z Is Sports Betting Instead Of Investing

Summary

Since states gained a path to legalize sports betting in 2018, the industry has grown rapidly. Americans legally wagered nearly $167 billion on sports in 2025.

Sports betting can feel similar to investing: both involve risking money in hopes of a gain. But betting may offer the appeal of a much faster payoff. A sports bet could potentially double your money overnight, while long-term investing compounds more gradually.

The video cites a historical average annual stock-market return of around 10%. At that rate, $10,000 could grow to more than $452,000 over 40 years.

Survey findings cited in the video include:

• More than half of Gen Z investors said they had used money earmarked for investing on sports bets.
• One in four Gen Z investors surveyed considered sports betting part of their long-term financial strategy.
• More than half of men ages 18–49 said they had an active online sports-betting account.

Experts warn that bettors can develop an “illusion of control”—the belief that their sports knowledge gives them an edge over chance. Despite that confidence, sports betting generally has a much lower expected return over time and often results in a net loss.

Research from the Federal Reserve Bank of New York linked the expansion of legalized sports betting with increases in delinquency and bankruptcy.

The video also notes that younger investors often begin investing earlier than previous generations and diversify at relatively high rates. The concern is that promises of quick returns may compete with advice to build wealth over time.

Practical Distinction and Caution

• Treat sports betting as entertainment, not as an investment strategy.
• Bet only money you can afford to lose—not funds intended for investing or other long-term financial goals.
• The video’s central caution is that long-term wealth-building is slower than betting’s potential quick payout, but betting carries a greater risk of losing money.

Assets and Instruments Mentioned

• Sports bets and online sportsbooks
• Stocks and index funds

No specific ticker symbols, individual companies, bonds, or cryptocurrencies are mentioned.

Presenters and Sources

• CNBC Make It
• Reporter credited in the video metadata: Kamaron McNair
• Sources cited in the subtitles include a Gen Z investor survey, the Federal Reserve Bank of New York, and unnamed experts.
• The video metadata identifies the survey as a Betterment survey.
• No “not financial advice” disclaimer is stated.