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A new American Gaming Association study found that people who gamble scored higher on financial literacy than non gamblers. Sports bettors recorded the strongest results, while prediction market users showed a clear gap between confidence in math ability and tested performance.
Good to know
- Gamblers averaged 3.93 out of 5 on financial literacy, compared with 3.72 for non gamblers.
- Sports bettors led every group at 4.18.
- Prediction market users rated their math ability close to sports bettors, but objective results sat near the non gambler score.
Sports Bettors Lead Financial Literacy Results
Sports bettors posted the highest financial literacy score at 4.18 out of 5. Prediction market users followed at 4.05, ahead of casino gamblers at 3.84, iGaming users at 3.75 and non gamblers at 3.72.
Across the full sample, 41% of gamblers qualified as highly financially literate. Only 27% of non gamblers reached that level.
Researchers used the five question Big Five index, which covers inflation, interest rates, risk diversification, bonds and mortgages. The overall sample average reached 3.88.
David Forman, Vice President of Research at the AGA, said:
“This study shows that, contrary to popular belief, gamblers are financially savvy entertainment consumers – especially sports bettors who demonstrate a particularly high level of financial literacy and mathematical capability.”
The study does not show that gambling causes stronger financial knowledge. It identifies an association between gambling participation and higher scores.
Prediction Market Users Show Math Confidence Gap
Objective math results told a different story.
Gamblers overall averaged 9.27 out of 11 on the Lipkus Numeracy Scale, almost identical to 9.28 for non gamblers. Sports bettors stood apart at 9.56.
Prediction market users scored 9.30, only slightly above non gamblers. However, their self rated numeracy reached 4.66 out of 6, close to the 4.75 recorded by sports bettors.
Casino gamblers scored 9.11 on objective numeracy, while iGaming users reached 9.14.
The AGA linked the prediction market result to concerns about sports event contracts being presented as trading or investment products.
Forman said:
“The research highlights the risks of ‘prediction markets’ marketing sports betting as investing against ‘peers’ and the dangers of misleading consumers into thinking they just have to be smart to win.”
The AGA warned that users who believe they have an analytical advantage may underestimate risk when trading against more experienced counterparties.
Casino Gamblers Lead Positive Play Scores
Casino gamblers recorded the highest Positive Play Scale score at 4.31 out of 5. Sports bettors followed at 4.21, prediction market users at 4.18 and iGaming users at 4.15.
Researchers also found a small relationship between financial literacy and responsible gambling behavior.
People with low financial literacy averaged 4.12 on the Positive Play Scale. Moderate literacy respondents reached 4.27, while the high literacy group averaged 4.28.
Forman said:
“As we close out another Responsible Gaming Education month, this research also identifies a potential link between responsible gaming and financial literacy, laying the groundwork for future research into this important topic.”
He added:
“It reinforces the principle that gambling must be promoted – and approached – as what it is: a form of entertainment, not a financial strategy.”
The study surveyed 3,201 US adults through Prolific. Researchers retained 3,149 responses after data cleaning.
The final sample included 986 non gamblers, 574 prediction market users, 557 casino gamblers, 537 sports bettors and 495 iGaming users.
Gamblers averaged 39.9 years old, compared with 40.0 for non gamblers. Gamblers also reported higher incomes overall, with most respondents earning between $35,000 and $99,999.
FAQ
Do gamblers score higher on financial literacy than non gamblers?
Yes. Gamblers averaged 3.93 out of 5, compared with 3.72 for non gamblers.
Which group scored highest?
Sports bettors led the financial literacy test at 4.18 and the objective numeracy test at 9.56.
How did prediction market users perform?
Prediction market users scored 4.05 on financial literacy and 9.30 on objective numeracy. Their self rated numeracy reached 4.66, close to sports bettors at 4.75.
Which group scored highest on responsible play?
Casino gamblers led the Positive Play Scale at 4.31 out of 5.
Who prepared the study?
Colin López of IN Research & Analytics LLC and Jackson Sears of Matrix Consulting Group of North Carolina prepared the research for the American Gaming Association.
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