One in Five Americans Calls Sports Betting an Investment

One in five survey respondents said sports betting is a type of investment, according to a Bank of America Institute report published September 1. Gen Z respondents were twice as likely as the overall group to hold that view.

The survey ran March 24-31 and included 2,351 people. More respondents said sports betting was not investing, while prediction-market contracts were more likely than sports wagers to be labeled investments across generations.

Bank of America also tracked payments to and from online betting platforms using customer account data. From January through July, money coming back to customers averaged less than three-quarters of the money they sent out, the bank found.

That is a measure of observed cash flows, not a full accounting of bettors’ profits. Bank of America said its data may miss winnings left in betting accounts and do not capture all gambling activity.

The bank’s figures also point to a fast-changing user base. First-time users in June and July were more than three times January’s level, and Gen Z and millennials together accounted for 88% of tracked betting activity in July.

Households that used online betting platforms had a median deposit-account balance equal to 59% of the balance at households that did not. The comparison does not show that betting caused the difference; the bank noted that users’ age and income may also help explain it.

The findings arrive as apps make betting available alongside other digital money activities. Bank of America said real-time pricing and community features can blur the line between betting and investing for some consumers.

That distinction matters because a sports wager depends on a specific outcome, while investing typically involves buying assets in pursuit of long-term growth or income. The bank’s next data on platform payments and new-user activity may show whether summer’s surge persists into football season.