Securities Regulation Daily Wrap Up, INVESTOR EDUCATION—Betterment survey finds blurred lines between investment and sports betting, (Aug 14, 2026)

By Anne Sherry, J.D.

More than half of Gen Z investors have diverted investment funds to sports betting.

Betterment’s fourth annual Retail Investor Survey reveals a quickly changing financial-information landscape for younger investors. Among Gen Z investors, social media was the most-cited source for financial news, and nearly half said AI has influenced a financial decision. A quarter of Gen Z investors treat sports betting as part of their financial strategy, with half of these investors redirecting money to it that they originally intended to invest.

AI advice. While trust in AI remains low overall, those who do trust it are using it to influence their financial decisions. Gen Z investors are eight times more likely than Boomers to be comfortable using AI for long-term financial planning: only 5 percent of Boomers are, compared to 41 percent of Gen Z.

Social media. Over the last three years of the survey, investors’ use of social media as a financial news source has expanded modestly. Much of that expansion is driven by Gen Z investors, 60 percent of whom cited social media as a news source in 2026, up from 45 percent in 2024.

Nearly half of investors reported feeling at least some pressure on social media to act on financial trends, including “soft saving” (prioritizing wellness over monetary savings) and “loud budgeting” (sharing financial goals).

Sports betting. A portion of each generation has redirected investing funds to sports betting at least once. This amounts to 52 percent of Gen Z investors, 31 percent of Millennials, 10 percent of Gen Xers, and 4 percent of Boomers.

Only 34 percent of Gen Z respondents said they don’t participate in sports betting at all, compared to 63 percent of all investors.

Dan Egan, Betterment’s VP of Behavioral Investing, is quoted in the report as cautioning about the blurring lines between speculative betting and long-term investing. “Our goal is to provide a structured alternative to DIY investing that lets investors clearly separate their speculative interests from their long-term wealth building, making sure they don’t inadvertently jeopardize their future for a current thrill,” Egan said.

Retirement readiness. Betterment also lamented that the age group that most urgently needs to plan for retirement, Gen X, reports the lowest confidence of retirement readiness, with only 31 percent feeling confident.

As for other major financial outlays, such as having a child, buying a home, or marrying, more than two-thirds of respondents reported wishing they had started planning earlier. This feeling of not having enough time to prepare also contributed to significant financial anxiety.

Betterment concludes that the investors with the highest confidence in their retirement readiness are those that combine their own research with professional advice and revisit their strategy regularly. “One way to put that structure in place is via digital investing platforms,” the report states.

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