Despite nearly 62% of Americans living paycheck to paycheck, a record 68 million Americans found a way to bet on this year’s Super Bowl matchup between the Kansas City Chiefs and San Francisco 49ers. GeoComply, a global leader in advanced anti-fraud and geolocation compliance technologies for the last several years, has tracked geolocation checks during the Super Bowl. This is built into the betting apps to ensure a bet is placed in a state that has legalized such activity. The result was that Geo-location checks were up 23% over last year. 1
Statista Market Insights estimates U.S. online gambling revenue will exceed $20 billion in 2024 which is more than double 2022 industry results. But this number excludes an obvious and significant gambling establishment: Wall Street. According to Scott Galloway, “Online stock trading was a $10.7 billion industry in 2023…the bulk of revenue generation comes from churn/trading. Customers use these apps to get in and out of stocks and buy elaborate, high-leverage derivative instruments.” Companies like Robinhood have been built around this phenomenon.
Whether it’s the Super Bowl or day trading, remember gambling is a form of entertainment where the house always has an advantage. Don’t confuse entertainment with a long-term investment plan.
Sources:
1. Prnewswire.com, Dec. 2023
