Today, it’s possible to place a bet on almost anything. You can bet on the outcome of a pro-wrestling match, or the success of a rocket launch, or even whether the president will say certain words during a speech. Not only that, the betting is instantaneous, making it easy to bet big (and potentially lose big) by simply picking up your phone and opening an app.

Although gambling has been around since the dawn of commerce, it has never been quite like it is today: instant, easy to access, and pervasive. And to a financial advisor like me, that’s a troubling development.

The Rise of “New” Gambling

The most fashionable and fastest growing form of gambling today are prediction markets. These platforms allow anyone, anywhere to place a bet on real-life events. As long as you’re over eighteen, you can participate. According to the Pew Research Center, “Combined monthly global trading volume on these platforms has risen from less than $5 billion in September 2025 to about $24 billion in April 2026.” To put this in perspective, sports betting in the US (which is hugely popular) averaged about $14 billion per month in 2025.

Even more troubling is the sheer number of people who regularly participate in online gambling. A recent survey showed that over a quarter of the US population gambles daily. Broken down by gender, 36 percent of men participate in daily online gambling, while 20 percent of women gamble daily. To me, that is a staggering number, and it deserves more attention than it’s currently getting.

Furthermore, young people are increasingly likely to gamble. In a recent survey, the National Council on Problem Gambling (NCPG) found that 65 percent of respondents participated in some form of gambling before the age of twenty-one. NCPG Executive Director Heather Maurer says, “Youth are at significantly greater risk for developing gambling problems, and as gambling becomes increasingly normalized in media, sports, and online spaces, the risks grow.”

Why Betting is NOT Investing

A disconcerting message appears in an article written by the major investment firm Charles Schwab: “The youngest generation of investors is being inundated with the message that investing and gambling are essentially the same thing.” And, in fact, 80 percent of Gen Z respondents in a recent survey said that they invest, or may invest, in “high-risk or speculative investments” because the feel “financially behind.” Other generations also participate in speculative markets for the same reason, but to a lesser extent (75 percent of Millennials, 66 percent of Gen Xers, and 51 percent of Baby Boomers).

These statistics are enough to throw any financial advisor (or sensible investor) into a panic. Gambling and speculations are not investing. In fact, they’re the polar opposite. The vast majority of gamblers lose their bets. That’s the entire nature of gambling: in the long run, the house always wins.

The same Charles Schwab article points to a major study of 700,000 online gamblers for five years. During that time, an astounding 95 PERCENT of participants were “net losers over time.” They would have been better off letting their money sit in a low-interest savings account or even tucking it under the mattress. Such a risky endeavor could never be considered an investment.

The Bottom Line

Though gambling can be a thrilling pastime, it should never be considered an investment. In fact, any responsible gambler should recognize that the odds are stacked against them, and they should only bet money that they can afford to lose. With the rise of online gambling and predictive markets, it is more important than ever to approach gambling with realism and a healthy dose of caution.

And talk to a trusted financial advisor for real investment advice; don’t count on a big payday from an online betting app.

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