Millennials and Gen Z are flocking to prediction markets and sports betting, there's just one problem: The majority of accounts are money losers

As the cost of living continues to increase, Gen Zers and millennials appear to be big fans of prediction markets and betting on sports. According to a recent study from Northwest Mutual, 32% of Gen Z and 24% of millennials say they're either actively using these platforms or they're considering putting some money into them (1). In comparison, just 17% of U.S. adults are interested in these platforms.

In recent years, prediction markets have become quite popular in the U.S. In fact, according to the investment firm Bernstein, trading volumes are expected to quadruple in 2026 from last year's totals, hitting $1 trillion by 2030, CNBC reports (2).

Why young Americans are taking to prediction markets

Based on Northwestern Mutual's findings, financial stress seems to be encouraging young people to find new ways to make some money.

Among those who showed interest in prediction markets, sports betting, options, meme stocks or crypto, 75% of millennials and 80% of Gen Zers say their interest stems from anxiety over falling behind financially, and these platforms could represent a quicker and less traditional way to reach their financial goals.

"There is a growing sense of nihilism, of financial nihilism, that the traditional rules of money are broken," Haley Sacks, host of the Financial Tea podcast, told CNBC (3). "Housing is unaffordable, inflation is eating your paycheck, and I think that people just feel like the slow and steady approach is maybe like a scam."