What happened this summer
A packed FIFA World Cup across North America and record audiences lined up with a sharp jump in online wagering, per new Bank of America research. Newcomers rushed in, with June and July bringing more than three times as many first-time bettors as January. Broader engagement climbed too, with participation across prediction markets and sportsbook sites in July running 40% higher than at the start of the year.
The findings come from tracking payments to and from betting platforms via credit and debit cards and ACH transfers. In a separate view of activity, monthly users are indexed to January 2026 at 100.
Who is betting and what the data says
In July, younger customers led the way: 88% of online betting came from Gen Z and millennials, with Gen X contributing 9% and baby boomers 3%. Participation was marginally higher among lower-income households than among middle- and higher-income households. And this has not turned into steady income: on average, customers receive less than 75 cents back for every dollar sent to prediction markets and sportsbooks, so the report concludes it is not currently providing profit or dependable earnings.
Regulatory lines matter. Prediction markets like Kalshi and Polymarket fall under federal oversight as designated contract markets and can be used by people 18 and up, whereas sportsbooks typically set a minimum age of 21 for bettors. That split has drawn legal challenges from states arguing prediction markets should be governed by state gambling laws.
Why people are betting and how they see it
"Online betting is moving further into the financial mainstream," said Bank of America Institute economist Taylor Bowley. He pointed to the flood of promotions and ads, along with big moments like the World Cup, as drivers. Momentum may carry through the year, with betting likely to get another jolt from the US Open alongside the kickoff of the football season.
In a Bank of America survey, one in five respondents characterized sports betting as an investment, and Gen Z bettors were twice as likely to do so. Across age groups, respondents were even more prone to call the purchase of event contracts on prediction markets an investment rather than entertainment. On these markets, users trade event contracts with other participants who take the opposite side, rather than wagering against a sportsbook that sets odds. Bloomberg Intelligence estimates the prediction-market industry could see yearly turnover hit $1 trillion by 2030; it also notes that on Kalshi, sports and parlays account for roughly 80% of trading.
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Real stories, practical risks, and your money
For a ground-level view, meet Mabi Moeng, 22, from Brooklyn. "I was seeing a bunch of people winning online, so I was like, let me just put my $10 in," she said. She downloaded Kalshi and, during Game 3 in the New York Knicks' championship run, accidentally picked the Spurs instead of the Knicks, losing the $10.
"I think the whole idea is really predatory. I don't think that we should be able to gamble on apps," she said. "It's really bad for people's financial health, mental health, because people are putting their whole paycheck into this and then losing it on an app." She says she won't be back.
Financial therapist Kate Grayson is hearing more about betting from clients, usually in small bites of $10 to $50 and typically no more than a few hundred dollars a month. "I'm witnessing it begin to move towards becoming part of people's financial plan and financial strategy in a way it certainly wasn't before," she said. She encourages clients to consider why they're betting. She also sees friction between partners even when the dollars aren't catastrophic, especially because winnings often stay on platforms and roll into new wagers, so one partner may see only the initial transfers out. "Even if you're sticking to a predetermined budget of $100 a month, it can still feel to your partner like a scary slippery slope that they don't like."
As big events keep the spotlight on betting and younger users drive the wave, the math from July is a sobering backdrop: the average dollar sent to these platforms returned less than 75 cents. That context matters when you are weighing entertainment against long-term goals.
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