Cash recovery from online betting falls short

Summary

• The online betting cash recovery ratio remained below 1 throughout the series, indicating total inflows averaged less than three-quarters of total outflows.
• Customer adoption for online betting increased by 40% in July compared to the start of the year based on Bank of America account data.
• Gen Z participants showed slightly better cash recovery results than other demographics, though total inflows still fell short of outflows.
• The data captures money moving to and from betting platforms each month and may not reflect winnings retained on-platform without withdrawal.
• The report utilizes aggregated and anonymized Bank of America transaction data from active US households making a minimum of five monthly transactions.
• Spending data is classified using Merchant Categorization Codes mapped to the North American Industry Classification System.
• The scope of the series is limited to predominantly online sports betting, horse racing, and prediction markets conducted via debit, credit, or ACH channels.
• First-time users are defined as customers making their first observed transaction in the category during a specific month, with records dating back to 2015.
• The football season from September through February was selected as a measure to capture a sizeable amount of online betting activity.
• A Bank of America Market Insights Survey was conducted between March 24-31, 2026, among 2,351 respondents.
• Data regarding generations defines Gen Z as born after 1995, Younger Millennials as born between 1989-1995, Older Millennials as born between 1978-1988, Gen Xers as born between 1965-1977, Baby Boomers as born between 1946-1964, and Traditionalists as born pre-1946.
• Measures in the report reflect customer payment flows to identified online betting platforms and are not a comprehensive measure of gambling activity, betting volume, customer profitability, or platform market share.
• Data is not adjusted for seasonality, processing days, or portfolio changes unless otherwise stated and may be subject to periodic revisions.