Nationwide Report Warns Younger Generations Against Treating Sports Betting and Prediction Markets as Investment Tools
TL;DR — Nationwide and Mark Hackett highlighted the risks associated with sports betting and traditional investing. Gen Z percentages were 52% and 26%, Millennials 31% and 14%. Hackett said probability of positive returns rises to roughly 79% and stocks have been positive for every rolling 16-year period since 1928.
SCCG Take — The data signals risks of misplaced financial expectations among younger users that could invite greater scrutiny of how prediction markets are marketed and perceived.
Nationwide has cautioned people against overreliance on betting as a financial strategy. The financial institution’s chief investment strategist Mark Hackett highlighted the risks associated with sports betting and traditional investing in a new report, as reported by GamblingNews.
Both activities carry risk, but the risk profile is different. Sports betting now factors in prediction markets popularized by Kalshi and Polymarket, particularly through the availability of event contracts. Investing usually sees capital compound and grow over time with a well-diversified portfolio. The logic is flipped for gambling.
Hackett explained: “But time works against the gambler; gambling is structured so that a statistical edge against the player compounds through repetitive activity.”
Young People Tempted by Gambling as Investment
Nationwide released a chart that studied the share of people across generations who have directed money meant for investing to sports betting, as well as those who view sports betting as a long-term financial strategy.
For Gen Z, the percentages were 52% and 26%, respectively. Among Millennials, the share of people diverting investing funds to bet on sports was 31%, and those who considered the activity a long-term strategy – 14%. Gen X diverted funds in only 10% of the cases, and only 6% saw the activity as a legitimate long-term plan. Boomers were even more skeptical – at 4% and 1% respectively.
Gambling Is Not the Same as Investment – Just Look at the Historic Data
Hackett said that people who want to achieve better financial independence ought to only stick to the S&P 500 Index and its historic performance. He elaborated: “Extend that period to a year and the probability of positive returns rises to roughly 79%. Over even longer periods, stocks have been positive for every rolling 16-year period since 1928. That’s the exact opposite of gambling.”
Despite this, more young people are turning to sports betting and prediction markets as a way to generate wealth. Hackett warns that this ambition is misplaced.
The Risk in Conflating Betting With Investing
The Nationwide findings expose the limitation of viewing gambling as a wealth-building substitute for traditional investing. Time compounds against the bettor while favoring diversified stock holdings over the long term. This distinction requires attention as younger cohorts increasingly blur the lines in practice.
Reporting: GamblingNews
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
When half of Gen Z redirects investment money to sports betting, operators face regulatory and brand risk.
We've spent three decades building this industry's credibility, and data like this — 52% of Gen Z treating betting as investment — is a flashing red light for regulators and legislators. Misperception at scale invites backlash, and operators who ignore financial literacy messaging will be the first targets when scrutiny intensifies.
- 52% of Gen Z and 31% of Millennials divert investment funds to sports betting
- 26% of Gen Z view sports betting as a legitimate long-term financial strategy
- S&P 500 shows 79% probability of positive returns over one year; gambling compounds against the player
SCCG angle: SCCG helps clients build responsible gaming frameworks and marketing guardrails that preempt regulatory blowback. We connect operators with financial literacy partners, compliance architects, and public affairs advisors across all 545 partners in our network to shape messaging before legislators do it for you.
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