A report by the Bank of America Institute finds that first-time users of online betting platforms more than doubled from June to July compared to January, with about 5% of bank customers betting in July. However, fund recovery rates remain below 1, with users recovering less than 75 cents per dollar transferred. Activity is concentrated among young adults, with Gen Z and Millennials accounting for 88% of July transactions. Betting households have a median deposit balance 59% lower than non-betting households, indicating weaker finances. On the regulatory front, the CFTC has issued new rules on prediction market contracts and incentive plans, while bipartisan bills in Congress aim to clarify the federal framework and enhance consumer protection.
Online Betting Users Jump, Recovery Stays Weak
On September 1, the Bank of America Institute put out a report showing a sharp jump in first-time users on online betting platforms. From June to July, that figure more than doubled compared with January, and about 5% of bank customers took part in betting activity in July. But the money picture looks bad. The user fund recovery rate has stayed under 1, with users getting back less than 75 cents on average for every dollar transferred. So no, betting does not look like a steady way to earn income.
Younger Users Dominate, Finances Lag
The activity skews young. Hard. Gen Z and Millennials made up 88% of transaction volume in July. At the same time, betting households show weaker finances: the median deposit account balance for those households is just 59% of the level seen in non-betting households.
Rules Tighten: CFTC Action and Bills in Congress
On the rules side, the Commodity Futures Trading Commission has rolled out new rules aimed at prediction market contracts and incentive programs. And in Congress, bipartisan bills are pushing to create a clear federal regulatory framework while strengthening consumer protections.
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