Gen Z, which includes those born between 1997 and 2007, is increasingly turning to sports betting for income, according to a recent survey. The rise coincides with increased esports wagering, particularly driven by greater opportunities to gamble on prediction markets.
According to a survey conducted by wealth and savings platform Betterment, 26% of Gen Z investors treat sports betting as a deliberate part of their long-term financial strategy.
Over half (52%) have redirected money originally intended for investing towards sports wagers in the past year.
“When a prediction market or sportsbook starts to feel like a retirement strategy, we have a problem,” said Sarah Levy, CEO of Betterment, in a press release.
“These products are designed to keep people seeking the next quick score, not to help them build toward the next decade. Younger investors deserve access to the tools and information that meet them where they are, but the industry also has a responsibility to be clear about the difference between participating in a trend and building lasting wealth.”
Gen Z turning from investing to gambling
Compared to other generations, Gen Z is far more likely to see prediction markets or sports betting as an investment strategy.
Compared to the 52% of Gen Z that have directed investment funds towards sports wagers, millennials (born between 1981 and 1996) are the next highest at 31%, followed by Gen X (1965-1980) at 10% and Boomers (1946 and 1964) at only 4%.
Gen Z is the largest group of esports fans, accounting for 42% of viewers, according to SQ Magazine data.
Esports trading continues to rise
The rise of prediction markets, which allow users across the US to wager on esports events, has further blurred the line between investing and gambling.
Kalshi previously ran an ad campaign encouraging users to see trading on the platform as a way to pay rent. A Gen Z girl featured in the TikTok ad claimed she earned two years’ rent through Kalshi’s predictions.
Trading on esports at Kalshi has almost tripled since April, with volume rising from $115 million to $308 million in July. Over the last 30 days, it has reached $330 million.
While Counter-Strike 2 previously dominated trading, accounting for 57% of volume in June, League of Legends has now overtaken it. Over $134 million was traded on LoL markets over the past 30 days, more than the $113 million on CS2.
As ever, there has been movement in legal battles between states and prediction markets this week. Washington state ordered Kalshi to stop accepting users by next week, but it may face a CFTC challenge to the court order.
The prediction market regulator exercised its emergency authority to require that Kalshi continue operating normally in New York this week. The agency previously opposed a Michigan court order requiring Kalshi not to wind up trades.
If Kalshi blocks users in Washington, it will be the third state where it is no longer operational, following Michigan and Nevada.
Data.Bet brings esports betting to Africa
Also, this week in the world of esports gambling, Data.Bet announced a partnership with Hollywoodbets. The South African-based betting platform will integrate Data.Bet’s full esports betting ecosystem into its platform.
“Esports is an emerging vertical in South Africa, and we’re aligned with Hollywoodbets on a clear roadmap to grow it together,” said Otto Bonning, Head of Sales at DATA.BET in a press release.
Recent research in South Africa also found that an increasing number of workers are turning to gambling as a source of income.
The Old Mutual Savings and Investment Monitor 2026 found that 53% of working South Africans gamble, while 42% say they often gamble to help cover their expenses or debt.
