Hey teenagetraders!
You’ve probably seen ads for sports betting apps, heard friends talking about putting money on a game, or maybe even thought about trying it yourself. Sports gambling has exploded in popularity, especially among Gen Z, but it’s important to know the difference between gambling and investing.

Let’s break it down.

What is Sports Gambling?

Sports gambling involves placing a wager (bet) on the outcome of a sporting event, such as predicting which team will win or how many points will be scored. It has become super accessible with online platforms and mobile apps, allowing users to place bets on everything from football to eSports with just a few clicks.

You might bet on:

• Point spreads (betting on the margin of victory)

• Moneylines (betting on the outright winner)

• Over/Under (betting on the total points scored in a game)

• Props (betting on specific occurrences, like a player scoring a goal)

While it can seem fun and exciting, sports gambling is fundamentally different from investing.

Why Sports Gambling is NOT Investing

Why is Sports Gambling Not Investing?

While both sports gambling and investing involve the risk of capital, they differ fundamentally in their approach and potential for returns:

• Risk and Return: Sports gambling offers the allure of quick, high returns, but the risk is equally high. The outcome of a single game can be unpredictable, and losses can accumulate rapidly.

• Strategy and Control: In investing, individuals can employ various strategies, such as diversification and risk management, to control their exposure and enhance returns over time. Sports gambling, however, relies largely on chance and does not offer the same mechanisms for risk mitigation.

• Regulatory Environment: Investments are typically made within a regulated framework that provides certain protections for investors. Sports gambling is often less regulated, depending on the jurisdiction, and may not offer the same safeguards.

Gen Z and Sports Gambling: The Stats

Sports gambling is particularly popular among Gen Z, and many young people are getting caught up in the hype without realizing the risks. According to a recent survey:

• 35% of Gen Z has engaged in sports gambling at least once.

• 17% of Gen Z believes sports gambling is a "safe bet" or an easy way to make money.
  (Spoiler: They’re wrong.)

While many see sports betting as a quick way to make cash, the reality is most people lose money over time. In fact, studies show that 80-90% of sports bettors end up in the red in the long run, meaning they lose more money than they win.

What If You Invested Instead?

Let’s say you gamble $500 in a month. The odds are, based on average losses in sports betting, you might lose $100 to $150 or even the entire amount. Over a year, that’s $6,000 you’ve risked, with little to no chance of growing that money.

Now imagine investing that $500 every month into the stock market. If you invested in an S&P 500 index fund (which tracks the 500 largest companies in the U.S.) and earned an average 8% return over the long term, your money would grow significantly:

• After 1 year: You’d have about $6,340.

• After 5 years: You’d have about $36,741.

• After 10 years: Your investment would grow to $91,473.

While investing is not without risk, historically, the stock market has provided consistent returns over time, especially when compared to the speculative and unpredictable nature of sports gambling.

Gen Z and Sports Gambling: The Stats

Sports gambling is particularly popular among Gen Z, and many young people are getting caught up in the hype without realizing the risks. According to a recent survey:

• 35% of Gen Z has engaged in sports gambling at least once.

• 17% of Gen Z believes sports gambling is a "safe bet" or an easy way to make money.
  (Spoiler: They’re wrong.)

While many see sports betting as a quick way to make cash, the reality is most people lose money over time. In fact, studies show that 80-90% of sports bettors end up in the red in the long run, meaning they lose more money than they win.

The Bottom Line

Gambling on sports might seem like a quick way to make money, but it’s a risky bet that often leaves people with less than they started with. On the other hand, investing in the stock market is a calculated approach to building wealth over time.

Instead of chasing fast money, think about where your money can work for you in the long run. Gambling may offer short-term excitement, but investing offers long-term success.

From your teenagetraders team, stay smart, invest wisely, and remember: the market is a better bet for your future!