Gen Z, Millennials Are Trying to Bet Their Way Out of Debt

Be it prediction markets, sports betting or other forms of alternative finance, young people like to gamble and one of their motivations for doing so is clear: reducing debt. Gen Z and millennials are turning to bet to reduce consumer debt. (Image: Shutterstock) A new survey by debt settlement provider National Debt Relief indicates that “87% of millennials as well as 77% of Gen Z currently carry debt” and that significant percentages of those cohorts are turning to various forms of wagering to lighten their financial obligations. “More than 6 in 10 millennials (62%) report regularly engaging in at least one activity such as sports betting, casino gambling, fantasy sports, prediction markets, day trading or the lottery, compared with a little less than half of Gen Z (45%),” notes National Debt Relief. The study, which queried 2,000 people across the four major generations, including 1,050 millennial and Gen Z respondents, found that many younger people who are grappling with debt turn to what they perceive as “judgment-free” sources, such as artificial intelligence (AI), for advice on alleviating debt burdens. Older Generations Aren’t Completely Innocent In defense of Gen Z and millennials, they’re not alone in turning to casinos, the lottery, prediction markets and sports betting as forms of debt relief. However, their older counterparts turn to those activities as liability erasers far less. “Among those who regularly participate in these activities, 65% of Gen Z and 49% of millennials say they have gambled, traded or participated in similar activities in an attempt to pay off debt, versus 39% of Gen X and 19% of boomers,” adds National Debt Relief. Compounding younger people’s financial woes is the fact they’re more likely to borrow to bet, hoping the next wager will hit and contribute to their debt eradication strategy. In reality, that practice is ill-fated and can contribute to debt spirals. “Millennials and Gen Z are participating in sports betting, prediction markets and other alternative financial activities at significant rates,” according to the debt relief organization. “For many, these activities aren’t simply entertainment or forms of investment; they are strategies to ease financial pressure. With others borrowing to gamble as well, younger generations risk falling into a debt cycle.” A Concerning Trend National Debt Relief points out that 73% of millennials and 60% of Gen Z carry some form of unsecured debt, with credit card liabilities being the most common. Moreover, the study underscores a concerning trend of young people committing financial errors in order to embrace activities such as prediction market trading and sports betting. Previous studies and surveys have noted that bettors, particularly those in younger demographics, are apt vulnerable to falling behind on bills and declining credit scores due to their wagering habits. There’s also increasing concern that many view betting as a tenable investing strategy even more so than standard options such as stocks and bonds. The post Gen Z, Millennials Are Trying to Bet Their Way Out of Debt appeared first on Casino.org.