“You want to make a million-dollar bet?” was a classic line punctuating arguments between my sisters and me as kids. Whenever they thought I was wrong, they would offer to bet me. Although I never collected on those wagers, technically I am now owed hundreds of millions of dollars.
Many consider the United States to be a gambling nation. Statistics show that approximately 85% of U.S. adults have gambled at least once in their lives, and 60% have done so within the past year. The legal gambling industry is massive, generating over $71 billion in revenue in 2024. Beyond its direct earnings, the industry contributes $261 billion to the economy annually and supports 1.8 million jobs.
The landscape of gambling changed significantly following a 2018 Supreme Court ruling that allowed states to legalize betting on sports. As a result, 38 states and the District of Columbia now permit sports betting. This shift has led to increased scrutiny, especially as recent headlines have featured baseball and basketball stars indicted for fixing games to profit themselves and other questionable characters.
While gambling can be entertaining for some, it carries serious risks. A 2024 study by researchers at USC and UCLA examined credit bureau data for more than four million consumers. Their findings revealed that consumers in states with legalized online betting experienced a 25-30% increase in personal bankruptcy filings three to four years after legalization. Additionally, these states saw declines in consumer credit scores, increases in debt collections, and a rise in auto loan delinquencies. The negative effects appear to be concentrated among those already financially constrained, with young men in their 20s to mid-30s being especially impacted.
Multiple academic studies are building a growing body of evidence that easy access to online gambling is strongly linked to personal financial ruin.
Another form of modern gambling has emerged with stock trading apps like Robinhood. These platforms have come under fire from gambling addiction experts and regulators because their user interfaces often mimic the excitement of casino environments. For example, when users complete a trade, the app celebrates with confetti animations, providing an immediate dopamine boost much like a gambling win. Robinhood also earns a higher rate per share through payment for order flow (PFOF), trade baby trade, a controversial practice. Notably, Robinhood users are more likely to trade options rather than traditional stocks—a pattern that closely resembles gambling behavior. The risks associated with these practices became tragically apparent in 2021, when the company settled with a family after their son died by suicide, mistakenly believing he owed $730,000 from trading options.
The question arises: why are younger generations increasingly drawn to gambling and risky financial behavior? Millennials and Gen Z are facing significant economic challenges. They are earning lower wages in their 20s and 30s compared to previous generations, all while carrying much larger student debt loads than their parents did. Homeownership has also become less attainable; while 62% of Baby Boomers and 60% of Generation X owned a house by age 35, only 49% of Millennials can say the same. Furthermore, 53% of Gen Z workers have a side hustle just to cover monthly expenses — a higher proportion than any preceding generation. On the positive side, more Millennials own stocks through their 401(k) and retirement savings plans than the prior generation, and nearly 40% of them have at least a bachelor’s degree.
The current distribution of wealth in the United States highlights these disparities. Baby Boomers hold the largest share, accounting for over 50% of all wealth. Generation X controls approximately 26%, while Millennials and Gen Z combined possess just 9-10%. This pattern is somewhat expected; as people age, they tend to accumulate more wealth. However, the gap between generations is widening, and younger people are increasingly feeling the effects. Boomers and Gen X cohorts benefited from decades of favorable economic conditions, including rising wages, affordable housing, and manageable college costs. In contrast, the younger generations face higher levels of student and mortgage debt, which hampers their ability to build wealth.
The growing prevalence of gambling among Millennials and Gen Z is closely tied to their pursuit of the American Dream. As traditional pathways to economic advancement such as homeownership and stable careers become increasingly inaccessible, many in these generations are turning to gambling, risky trading, and online betting in hopes of improving their financial standing. The data reflects a direct connection between rising economic pessimism and increased gambling activity among younger Americans. This trend has come to be known as “financial nihilism.”
Recent surveys highlight this shift in mindset: 24% of Gen Z gamblers and 22% of Millennial gamblers view gambling as a legitimate investment, compared to just 10% of Generation X and only 3% of Baby Boomers. This belief in gambling as an investment has fueled participation in speculative assets, such as meme stocks, leveraged exchange traded funds, cryptocurrencies, sports betting, and prediction markets.
Columbia Business School professor Simon Oh has noted that “these behaviors can be understood as a rational response by young investors facing increasingly limited opportunities for wealth accumulation through conventional means. With traditional avenues largely out of reach, many feel that taking significant risks is the only viable strategy to achieve their financial goals.”
The evidence suggests that when young people are excluded from stable, wealth-building opportunities, they are more likely to engage in high-risk speculation. Despite the unfavorable odds, these individuals see such speculative ventures as their best chance to achieve financial security.
TL;DR: Wrap it all up. Gambling and high stakes investing in the U.S. are intertwined with some hefty economic and generational challenges. The boom in gambling and speculative finance among Millennials and Gen Z is making waves across society, the economy, and even politics. Socially, more folks shooting for the moon can stir up mental health issues, feed addictive habits, and put stress on relationships. As risky financial moves increase, trust in the old school ways of building wealth may start to wobble, leaving younger folks wondering if there’s even a spot for them at the economic party.
On the economic side, the growing appetite for betting and asymmetric investments is shaking things up in the financial markets. The stakes are higher for personal financial mishaps think bankruptcy and debt. If more people land in financial hot water, those shopping sprees might become a little less frequent, giving the broader economy a bit of the flu.
In the political arena, lawmakers are feeling the heat with the mood swinging toward economic gloom and a sense of being left out, younger generations are rallying for bold changes and a fairer shot at prosperity. This is shaking up everything from election results to the social policy menus across the country, ideas like universal basic income, tax changes that aim a little higher, and sturdier social safety nets.
The generational split in American politics isn’t just about who has the best playlist or coolest memes, it’s rooted in how perks and opportunities have been handed out over time. Baby boomers, long holding the reins in government and business, have backed policies benefitting them, sometimes at the expense of Millennials and Gen Z. Programs like Social Security, Medicare, homeowner tax breaks, and pension goodies, mostly tilting in favor of the older crowd. Meanwhile, the bill for all this gets handed to the younger folks, who pay out in higher taxes, trimmed-down public services, and fewer rungs on the ladder of economic mobility. The Brookings Institute puts it in numbers: for every dollar the federal government spends on a 30-year-old, it drops seven bucks on a 65-year-old.
Housing really drives it home—zoning rules and tax perks have helped boomers build real estate equity, while sky-high prices and red tape put homeownership out of reach for many young Americans.
Those bold bets my sisters placed years ago could practically rival the GDP of a small country. Now, in 2025, it seems America has a bit of a thing for high-stakes action except this time, the wagers are very real. Ever since sports betting took off after 2018, folks are rolling the dice like never before.
But with all this easy access comes a bad punchline: more bankruptcies and financial headaches, especially for young men hoping for a lucky break. Mix in the casino-style excitement of stock trading apps and the squeeze on Millennials and Gen Z, think more debt, fewer homes and it’s easy to see why betting big feels like a shortcut to the American dream. Still, with Boomers holding most of the wealth and the rules leaning their way, the younger crowd is left crossing their fingers that luck will finally turn their way.
Bottom line? When the usual roads to success are blocked, young Americans are taking chances—sometimes it pays off, sometimes it doesn’t, but everyone’s hoping the next big win is just around the corner.
If you watch any action movie, you’ll notice that only a few gunmen remain standing by the end and they’re the good guys. In the world of investing, the distinction between “good” and “bad” often comes down to high quality companies or investments versus fleeting trends.
Back in the 1970s, the so-called “Nifty Fifty” stocks were extremely popular. However, after these stocks reached peak valuations, some of the companies went out of business, including well-known names like Kodak and Polaroid. Similarly, during the dotcom boom, companies simply added “.com” to their names and watched their stock prices soar. There were even individuals, like Kim Schmiz, who went so far as to legally change his name to Kim Dotcom.
Today, the trade du jour is the “Magnificent 7,” cryptocurrencies, prediction markets, and quantum computing. As history has shown, some of these will endure, while others will fade away.
Historically, owning a diversified selection of stocks has yielded strong results. Over the long run, stocks generally trend upward. Time is an investor’s ally.
It can be easy to get distracted, especially with social media showcasing individuals boasting risky trades and flashy lifestyles. However, many of these investment opportunities are binary in nature: you either win big or lose everything.
You work hard for your money, so make sure it works hard for you.
If you’re feeling uneasy about the current state of the markets, it may be a sign that your investment portfolio isn’t properly aligned with your goals or risk tolerance. While investing will always involve some degree of risk, your investment strategy shouldn’t be based on the possibility of doubling your money or losing it all. Instead, a well thought out approach should focus on steady growth and resilience over time.
We want to take this opportunity to wish you and your family a Merry Christmas and a Happy New Year. We look forward to partnering with you on your financial planning and investment journey in 2026.
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