A recent study indicates that a larger proportion of Gen Z individuals are turning to gambling in pursuit of financial goals, including saving for retirement, compared to other age groups.
According to research by Betterment, which was released on Tuesday, 26% of those in Gen Z—people born between 1997 and 2012—see sports betting as a part of their long-term investment approaches. The findings also reveal that in 2026, 60% of Gen Z participants sought financial advice from social media channels, while only 21% consulted traditional financial advisors.
The study surveyed 1,000 investors across four generations between March 27 and April 3, 2026. Betterment, a financial technology company, hasn’t commented on inquiries from the Daily Caller News Foundation.
Betterment’s CEO, Sara Levy, expressed concern, stating, “The issue arises when prediction markets and sportsbooks start seeming like retirement plans.”
Fortune Magazine recently reported that Americans are expected to wager at least $166 billion on sports events in 2025. This follows the 2018 decision by the U.S. Supreme Court to lift the federal ban on sports betting, with states that have legalized this practice seeing increased rates of credit card delinquencies among Gen Z and Millennials, as noted in a study by the Federal Reserve Bank of New York in February 2026. Furthermore, a five-year analysis found that an overwhelming 96% of sports bettors ended up losing money.
Levy noted, “These products are designed to keep people searching for the next quick win rather than helping them grow their wealth sustainably. Young investors should have access to relevant tools and information, but the industry must also clarify the distinction between following trends and building true wealth.”
Gen Z’s growing mistrust of traditional financial institutions might be linked to a sense of “economic nihilism” shaped by their outlook on the economy, as highlighted by a Yahoo News report. A survey from Northwestern Mutual released on Aug. 3 showed that 71% of Gen Z respondents felt uncertain about achieving significant life milestones like marriage or home ownership.
Interestingly, as of the time of review, the unemployment rate for this generation stood at 8.5%. Analysis by Revelio Labs indicated a 35% drop in entry-level job openings since 2023, largely influenced by the ascendancy of artificial intelligence in the workforce. Moreover, a troubling 34% of recruiters acknowledged posting fake job listings, as pointed out by staffing industry analysts in June 2024.
This deep-seated distrust among Gen Z could also stem from feeling let down by institutions they were raised to trust. A Gallup survey revealed that over half (55%) of Zoomers felt pressured by their parents to pursue a college education. Compounding this, student loan debt reached a staggering $1.863 trillion in July.
Financial educator Kyla Scanlon remarked, “When conventional paths narrow, people start seeking alternatives, often in places where they think there might still be some upside, even if it’s a gamble.” She highlighted how treating economics like a game suggests that the traditional paths to success might not appear feasible anymore.
Inquiries were also made to the White House, Treasury Department, and Department of Commerce for further comments.
