Prediction Markets, Sports Betting Apps Target 18-Year-Olds With Memes as 69% of Polymarket Users Lose Money
Updated
Updated · The Associated Press · May 28
Prediction Markets, Sports Betting Apps Target 18-Year-Olds With Memes as 69% of Polymarket Users Lose Money
9 articles · Updated · The Associated Press · May 28
Prediction markets and sports wagering apps are using memes, influencer-style ads and game-like features to pull in young users, often starting at age 18 rather than 21.
588 million Polymarket trades analyzed in academic research showed profits concentrated among a small top tier, while 69% of users lost money, underscoring concerns that the products feel casual despite financial risk.
Platforms lower the barrier with small-stakes offers, sweepstakes models, leaderboards, badges, chats and avatars—tools experts say shorten the feedback loop and make wagering more immersive for younger brains.
Pew found about 2 in 10 Americans under 30 wagered online in the past year, up from 7% three years earlier, as critics warn companies are trying to win lifelong customers with early exposure.
Lawmakers are starting to respond: Sens. Katie Britt and Richard Blumenthal introduced a bill last week to block sports betting ads to minors, while companies say their branding is mainstream and safeguards are in place.
As lawmakers target ads, can apps still lure young adults by framing high-stakes financial risk as just a game?
Will new federal rules legitimize prediction markets as financial tools or expose them as cleverly disguised casinos for a new generation?
$6.5 Billion Prediction Markets: Explosive Growth, Youth Targeting, and the Hidden Costs of Gamified Betting
Overview
Prediction markets are experiencing explosive growth, rapidly expanding their presence in the broader betting landscape. Platforms like Kalshi and Polymarket are leading this surge, recently reaching a record $6.5 billion in weekly trading volume. This mirrors the steady rise of the legal sports betting industry, which has seen consistent revenue increases since 2018. The expansion of prediction markets is fueled not just by larger trades, but also by higher user engagement and a growing, more active participant base. This trend highlights how prediction markets are becoming a major force, attracting new users and reshaping the betting industry.