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Point of Focus
- 51% of prediction-market users surveyed borrowed money to fund bets.
- 88% of users who borrowed reported losing money.
- Overall, 79% of users lost money in the past year.
More than half of prediction-market users have borrowed money to fund their bets, according to a new survey that raises concerns about the financial risks surrounding the rapidly expanding industry.
The BadCredit.org study found that 15% of US adults have used platforms such as Kalshi, Polymarket or PredictIt.
Among those users, 51% said they had funded bets with a credit card, personal loan, or another form of borrowed money.
The findings suggest that some consumers increasingly view prediction markets not simply as entertainment but as a potential solution to financial pressure.
Borrowing sharply increases the risk of losses
Overall, 79% of surveyed prediction market users said they had lost money during the previous year. More than one-quarter, or 27%, reported losing over $500, while 9% lost more than $1,000.
The rate was considerably higher among users who funded their activity with debt. Of those who borrowed to bet, 88% reported losses, compared with 69% of users who did not borrow.
Gen Z is moving money from stocks to sports betting in wealth plans, 52% of them have redirected inv funds to sports betting and quarter of them treat sports betting as a deliberate part of their long-term financial plan, according to survey from Betterment. Wow. pic.twitter.com/SVjn0PTB92
— Eric Balchunas (@EricBalchunas) August 12, 2026
Borrowing also magnifies the financial consequences because losing the initial bet does not eliminate the debt. Credit card balances and personal loans may continue accumulating interest, leaving users to repay substantially more than the original amount wagered.
BadCredit.org consumer finance expert Erica Sandberg warned that such losses can make it difficult for households operating on tight budgets to cover essential bills.
Most users are looking for income
Financial motivation was the most common reason respondents gave for entering prediction markets.
44% said they wanted to earn extra income, while another 9% joined because they were struggling financially and needed an additional income stream. Together, 53% cited an income-related motivation, nearly double the 27% who joined primarily for entertainment or curiosity.
Another 10% said social media influenced their decision, while 7% learned about the platforms from friends or relatives. Only 3% joined because they considered traditional investing inaccessible.
The survey also found that 30% of all respondents believed prediction markets could realistically improve their financial circumstances. Men were more likely to hold that view than women, at 37% compared with 25%.
Growth brings consumer-protection questions
Prediction markets allow users to trade contracts tied to the outcome of political contests, sporting events and other real-world developments. As volumes grow, platforms often present these products as markets that aggregate information rather than conventional gambling.
For financially vulnerable users, however, that distinction may be less important than the outcome. Treating speculative contracts as an income source can encourage repeated risk-taking, particularly when previous losses create pressure to recover money.
The “non-crypto” prediction market just flipped the biggest “crypto” prediction market in crypto volume.
9% market share in January → 60% now. pic.twitter.com/AjW4YxLuV9
— John Wang (@j0hnwang) May 5, 2026
Sandberg said prediction markets may be used as entertainment, but participants should only commit cash they can afford to lose without damaging their broader finances.
The survey highlights a growing consumer protection challenge: Prediction markets are attracting users who are not merely speculating with disposable income.
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