Bank of America questions viability of sports betting as investment

Bank of America Institute has released an analysis challenging the notion that sports betting can serve as a reliable source of income or a viable alternative to traditional investments. The research indicates that the online betting cash recovery ratio has consistently remained below 1, with customers recovering, on average, less than $0.75 for every dollar transferred to betting platforms.

The report estimates that only 3% to 5% of sports bettors ultimately generate a profit. This low success rate raises concerns regarding the use of sports wagering or prediction markets as a primary or supplementary income stream.

Demographic analysis showed that no generation achieved a break-even point. While Gen Z recorded the highest recovery ratio at approximately $0.82 per dollar, this figure still falls short of breaking even. Notably, the study found that Gen Zers were twice as likely as older generations to consider sports betting a form of investment.