Gen Z and Millennials Turning to Gambling to Pay Off Debt

Whether turning to prediction markets, sports betting, or other alternative finance tools, younger adults are increasingly gambling with a clear goal in mind: paying off debt.

A new survey by debt settlement provider National Debt Relief indicates that 87% of millennials and 77% of Gen Z currently carry debt, with significant percentages turning to various forms of wagering to lighten their financial obligations.

The study—which surveyed 2,000 adults across four generations, including 1,050 millennial and Gen Z respondents—found that many younger people grappling with debt turn to what they perceive as “judgment-free” sources, such as artificial intelligence platforms, for relief advice.

Generational Divide

Younger cohorts are not alone in turning to casinos, lotteries, prediction markets and sportsbooks as forms of debt relief. However, older demographics use those activities as financial quick fixes far less often.

Among regular participants, 65% of Gen Z and 49% of millennials said they have gambled, traded or bet in an effort to pay off debt, compared with 39% of Gen X and 19% of baby boomers, according to the report.

Compounding those financial woes is a tendency among younger bettors to borrow money to gamble, hoping a winning wager will wipe out existing obligations. Financial advisors warn the practice often triggers compounding debt spirals.

“Millennials and Gen Z are participating in sports betting, prediction markets and other alternative financial activities at significant rates,” according to the debt relief organization. “For many, these activities aren’t simply entertainment or forms of investment; they are strategies to ease financial pressure. With others borrowing to gamble as well, younger generations risk falling into a debt cycle.”

A Concerning Trend

The report highlighted that 73% of millennials and 60% of Gen Z carry unsecured debt, with credit card balances representing the most common liability.

The findings align with broader industry research showing younger bettors are especially vulnerable to falling behind on routine bills and suffering credit score declines due to wagering habits. Experts also cite growing concern that younger consumers increasingly view gambling and speculative trading as viable investment strategies over traditional options like stocks and bonds.