Online betting surged across the United States this summer, fueled in part by the FIFA World Cup and a growing appetite for sports prediction markets, according to a study released this week.
The number of first-time online betting users increased by more than three times in June and July compared with January, a study by the Bank of America Institute said. Overall participation through traditional sportsbooks and prediction markets rose by about 40 percent, or 4 in 10, in July from the start of the year.
Younger Americans were driving the surge, the study said, with Gen Z and Millennials comprising nearly 9 in 10, or 88 percent, of online betting activity in July. Gen Z’s number has overtaken Millennials’ for the first time this summer.
The World Cup gave betting platforms a major boost during what is usually a quieter period for U.S. sports wagering.
Prediction markets, such as Kalshi and Polymarket, also grew alongside conventional sportsbooks. But behind the betting boom was the reality that most users were losing money.
Data showed customers typically received less than 75 cents for every dollar they topped up to betting platforms. However, Gen Z bettors performed fairly well compared to older groups, but still failed to recoup their money.
The financial gap was also reflected in the household’s bottom line. Households that participated in online betting had median deposit-account balances just 59 percent of those of households that did not.
New Mexico caught in the betting debate
The surge is also being felt in New Mexico. Sports betting at tribal casinos is restricted to people 21 and older, while prediction-market apps generally allow participation beginning at 18.
State and tribal officials have raised concerns about whether prediction markets such as Kalshi are operating within the state’s regulatory framework.
New Mexico Attorney General Raúl Torrez and several Native American tribes filed lawsuits this summer challenging Kalshi. These lawsuits raised concerns about violations of tribal gaming compacts and state sovereignty.
The reaction to the betting explosion was mixed. At Uptown Sports Bar in northeast Albuquerque, one regular described sports betting as “a great way to lose money.“ Another customer said disciplined bettors can earn.
Betting operators expect another surge as the NFL season kicks off. Prediction markets are riding the surge, drawing in a younger crowd and expanding fast.
