There’s been a lot of chatter lately about traditional brokerage firms opening the door to sports-betting markets for their clients.
Let me be crystal clear: That does NOT mean betting on sports is the same thing as investing.
These firms are publicly traded businesses. Their job is to increase shareholder value — even if that means encouraging behavior that has nothing to do with long-term wealth creation.
But don’t confuse the two. Sports gambling is short-term, speculative, and structurally designed to separate you from your money. The more you play, the worse your odds get.
Investing is the opposite. It involves strategy, discipline, and the power of compounding. The longer you play, the better your chances of success.
Time and discipline drive real investing outcomes. Gambling relies on chance.
In fact, even the CFA Institute puts it plainly: “Over time, gambling always has a negative expected return.”
They’ll Lie to You About It Anyway
There are plenty of people — and companies — who want you to believe sports gambling and trading public securities are the same thing.
They benefit from that confusion, and they’re working hard to blur the lines a little more every day.
They know you’re vulnerable. Gambling feeds on emotion, impulse, and the cheap thrill of a quick outcome.
Investing is the opposite. It’s about following a plan, staying disciplined, and identifying favorable risk-vs-reward opportunities. It’s not about dopamine hits. In fact, good trading is boring.
But none of that will stop firms like Interactive Brokers (IBKR) and Robinhood Markets (HOOD) from cashing in on the confusion.
And there will always be people willing to say anything to convince you that trading and sports betting are the same thing.
They’re not.
The Kids Aren’t Stupid
I don’t buy the narrative that younger people are dumb enough to fall for this “trading = gambling” scam. In fact, we’re seeing the opposite. Their decision-making has been shockingly responsible.
Nearly 40% of 25-year-olds now have investment accounts — up from just 6% in 2015.
And 54% of Americans earning between $30,000 and $80,000 have a taxable brokerage account, with half of them entering the market in just the past five years.
Look at stock ownership among people under 40:
It’s now approaching $3 trillion, up more than 300% since 2020.
People love to say the younger generation is screwed, hopeless, or doomed.
From where I’m sitting, it looks more like some folks want that story to be true. It’s a bizarre, almost psychotic worldview.
I’m rooting for Gen Z — but the truth is, they don’t even need my support.
They’re already doing the work. They’re earning more than all the previous generations at the same age, even after adjusting for inflation, and they’re allocating those dollars intelligently.
And let’s be honest: The younger generation isn’t dumb enough to mistake gambling for investing.
I’ve seen what gambling does. I’ve watched households implode and successful adults lose everything chasing the rush.
Because gambling is not a strategy.
It’s a game engineered for you to lose — and the kids know it.
If you or someone you know is struggling with gambling, confidential help is available 24/7. Contact the National Problem Gambling Helpline by calling or texting 1-800-Gambler.
Stay sharp,
JC Parets, CMT
Founder, TrendLabs