1 in 5 Americans thinks sports betting is an ‘investment’ — but the data says something different
Christy BieberTue, September 22, 2026 at 1:15 PM GMT+3 7 min read
Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.
In the second quarter of 2026, bettors wagered $38.84 billion on sports, while total revenue from sports betting was $3.91 billion (1). The total amount wagered by bettors on sports represents a growth of 7.8% from 12 months earlier.
The numbers are clear: Americans are betting a lot more on sports. And although some of those gamblers may just be having fun, others see their bets as serious business.
Top Picks
-
Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one
-
A single line on your car insurance policy could be inflating your premium by up to 30% — here's what to change
-
A record 45% of central banks plan to grow gold reserves — and many investors are following suit. Get your free gold IRA guide from Priority Gold
In fact, recent research from Bank of America (2) revealed that 1 in 5 Americans view sports betting as a type of investment. However, Gen Z is twice as likely as other generations to view sports betting this way, while baby boomers are the least likely to see gambling on sports as a type of alternative investment.
This belief may stem from the increasing gamification of investing (3), with some broker-dealers adding game-like features to their mobile investment platforms, including leaderboards, rewards and quests, and animations like falling confetti when a trade is completed.
Designed to create dopamine loops and manufacture fear of missing out, these features may encourage casual trading and blur the line between sound investments and speculative behaviors like day trading and sports betting.
While sports bettors may feel like they're investing, the numbers show this approach isn't working for many who bet their future on the big game.
There are safer investments to help you build wealth
The Bank of America data suggests that sports bettors aren't doing so well with their wagers. Customers generally recover less than 75 cents out of every dollar they transfer to an online betting platform.
Meanwhile, the median deposit balances of households that participate in online betting are around 59% as large as the balances of those who don't bet online.
This data is unsurprising, given the meaningful differences between betting and investing. Most obviously, in betting, the house always wins in the long run, as sportsbooks and other games of chance generally profit because they set the odds to ensure the house is always favored.
Investing, on the other hand, involves buying assets with a reasonable expectation of generating income and capital appreciation, or both.
Broad market investing has historically delivered positive returns, and many types of investing are regulated to help ensure a level playing field for consumers. For example, public companies must provide financial disclosures so investors can make informed choices before buying shares.
Sports betting is arguably nothing more than speculation, and many betting platforms are designed to encourage you to keep wagering rather than walking away if you're lucky enough to make a profit.
In other words, if you're hoping that you'll be one of the few to beat the odds — and this is part of your plan for growing your wealth — you're likely setting yourself up for disaster.
Ultimately, while the statistics suggest sports betting is very unlikely to help you attain financial independence, there are plenty of other investments with a proven track record of aiding your wealth-building efforts. Here are some options.
Investing in ETFs
ETFs are an excellent investment for many because you don't need advanced financial knowledge or a lot of money to get started. ETFs offer you the opportunity to buy into a group of investments. Many of them track financial indexes, such as the S&P 500, while others allow you to gain exposure to specific industries or asset classes.
In fact, just about anyone can invest in ETFs, and even small amounts can grow over time with tools like Acorns. Acorns makes buying ETFs effortless, letting you automatically invest your spare change into a low-cost ETF.
Signing up for Acorns is easy. All you have to do is link your cards, and Acorns will round up your purchases to the nearest dollar and invest the difference into a diversified portfolio managed by experts at leading investment firms like Vanguard and BlackRock.
It takes as little as $5 to get your money into a dividend ETF — and, if you sign up today, Acorns will add a $20 bonus to help you begin your investment journey.
Buying stocks
Buying stock shares is another good option, especially if you use a service like Moby, which offers both expert stock recommendations backed by former hedge fund analysts and research to help you choose long-term investments you feel confident about.
Moby's team spends hundreds of hours combing financial news and data to create easy-to-understand stock and crypto reports that are delivered straight to you. Moby's recommendations have beaten the S&P 500 by almost 12% on average over four years and across hundreds of stock picks, and their reports are easy for beginners to understand.
Best of all, Moby keeps up with market shifts and financial news for you, allowing you to invest more confidently and reduce the guesswork in building your portfolio.
It takes just five minutes to become a smarter investor.
Taking advantage of private market opportunities
If you want to diversify beyond publicly traded stocks and bonds without jumping into the speculative world of sports betting, Willow Wealth offers access to alternative investments with a strong track record.
More than 500,000 members have invested over $6 billion (4) through Willow and the platforms it has acquired. The minimum investment starts as low as $5,000, giving you exposure to private-market opportunities spanning real estate, private equity, private credit, art and litigation finance.
You also have the choice to invest in individual deals or opt for diversified funds, including funds managed by Goldman Sachs, Carlyle, StepStone and other institutional firms. All you need is a few minutes to research and select the investment or fund that's right for you, although it's worth noting that private investments can require long holding periods, carry higher fees and result in losses.
See how Willow can put your money to work across a wider range of assets.
Working with a financial advisor
Finally, working with a financial advisor can help you to find investments you're excited about. They can help you crunch the numbers and build an investment plan that works.
But hiring an advisor could be a lifelong commitment, one that might make or break your retirement. That's why finding reliable advisors is crucial.
This is where Advisor.com comes in, connecting you with an expert near you for free. Advisor.com does the heavy lifting for you, vetting advisors based on track record, client ratios and regulatory background. Plus, their network comprises fiduciaries, meaning that they're legally required to act in your best interests.
Just share a few details about your finances and goals, and Advisor.com's AI-powered matching tool will connect you with a qualified expert based on your situation and your ideal future outcomes.
Since it's important to find the right fit, Advisor.com also lets you set up a free initial consultation, with no obligation to hire, to see if your advisor is a good match for you.
What To Read Next
-
Millionaires under 43 hold only 32% of their wealth in stocks. Here's where their money is actually going
-
Dave Ramsey says this 1 indulgent purchase stops Americans from becoming wealthy. Here's what he recommends instead
-
The tax breaks in Trump's 'big beautiful bill' expire after 2028. Here are 4 moves to make before the window closes
-
This 20-year old lotto winner refused $1M in cash and chose $1,000/week for life. Now she's getting slammed for it. Which option would you pick?
Get Warren Buffett's best investing lessons, free. Join 250,000 readers getting Moneywise's sharpest money reporting every week. Subscribe and we'll send you our guide to the ideas that built Buffett's fortune as a welcome gift.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
American Gaming (); Bank of America (); District of Columbia Department of Small and Local Business Development (); Willow Wealth ()
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Yorumlar (0)
Giriş yaparak yorum yazabilirsin.
İlk yorumu sen yaz.