Gen Z More Likely to View Event Contracts as Investments Than Sports Bets, BofA Finds

Americans across all generations are more likely to view event contracts as an investment than traditional sports betting, according to new research from Bank of America. Gen Z respondents showed the strongest tendency to classify event-based products as investments rather than wagers.

Event contracts gain investment appeal

Event contracts allow participants to buy or sell positions tied to the outcome of a future event, such as an election, economic release, or sports result. The contracts typically pay a fixed amount if a specified outcome occurs and expire at a defined date.

Bank of America’s research found that respondents in every generation were more likely to describe purchasing event contracts as an investment than placing a conventional sports bet. Gen Z recorded the largest difference between the two categories, highlighting the growing overlap between financial markets, online platforms, and prediction-based products among younger users.

Sports betting returns remain under pressure

The research also indicated that bettors receive less than 75 cents for every dollar wagered through online betting platforms. The figure reflects the unfavorable expected returns associated with sports betting, where platform fees and bookmaker margins reduce the amount returned to participants over time.

Event contracts are structured differently from standard sportsbook bets, but they still involve substantial risk. A participant can lose the amount committed if the selected outcome does not occur, while market prices may also fluctuate before a contract expires.

Growing scrutiny of prediction markets

The findings come as prediction markets and event-based trading platforms attract increased attention. Some platforms use blockchain technology or offer crypto-related payment options, while others operate through conventional financial infrastructure.

The growing popularity of these products has prompted debate over how they should be classified and regulated, particularly when contracts involve sports or other forms of entertainment. Their investment-like presentation may also influence how users assess the risks involved.