May 8, 2026
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.
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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."
With some big prediction market wins making recent headlines, it's not hard to understand why young cash-strapped Americans would flock to such a platform. As Sacks explains, some users see the prediction market as "a faster path to wealth than traditional savings."
"They want a shortcut because the traditional road looks blocked," she adds.
While the traditional wealth-building pathways like investing and homeownership still exist, many young Americans have a hard time believing they can achieve the same level of success as older generations. And with today's high housing costs, stagnating wages and high student debt, there are many reasons for the youth to be skeptical.
Prediction markets, on the other hand, offer young folks a chance to make some extra money by betting on anything from oil futures to pop culture news to election outcomes.
"They almost make you feel like all your hours spent doomscrolling TikTok or tracking celebrity drama are actually market research," Sacks told CNBC. "It almost validates the idea that you know something that experts don't and [you can] turn being a fan or being a news junkie into a lucrative — or they present it as lucrative — profession."
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There is, however, just one problem.
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Most prediction market users lose money
As CNBC reports, Bloomberg recently analyzed trade data from the data firm Dune and the results paint a bleak picture for anyone who's thinking about betting on prediction markets.
According to the data, more than 100,000 accounts on Polymarket — one of the premier prediction market platforms — have lost at least $1,000, which is more than double the number of accounts that have won that sum (4). Research from SSRN also found that approximately 69% of Polymarket accounts have lost money, while 77% of the money won on the platform has gone to the top 1% of its users (5).
On Kalshi, one of the other premier prediction market platforms, more than 70% of its users have been unprofitable since November 2025, CNBC reports.
"The moment that you call prediction market [wagering] an investment, you've already lost," said Sacks. "Look at the money that you put into the prediction markets as an entertainment task, as money as you would spend going to the movies, or going out to dinner … you're not expecting to get that money back with interest. You're paying for the experience."
With this in mind, those who are looking to earn some more money might want to steer clear of prediction markets. Today's world may be "somewhat of a casino," as President Trump put it, but that doesn't mean the odds are in your favor.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
Northwestern Mutual (1); CNBC (2),(3),(4); SSRN (5)
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Chase is an Associate Editor for Wise Publishing. He formerly worked at Yahoo Canada as an editor on both the News and Sports teams.
