Dr. Daniel Crosby - The Psychology of Sports Betting and Investing: How Gambling Culture Reshapes Retail Investor Behavior and What Advisors Should Do About It

This episode of Standard Deviations with Dr. Daniel Crosby discusses Betterment’s 2026 Retail Investor Survey findings on Gen Z and sports betting, and compares Gen Z’s financial prospects and workplace retirement contributions with those of Gen X and millennials. It also examines the psychology behind gambling and “financial entertainment,” including dopamine, variable reward schedules, recency bias, near-miss effects, social proof and loss chasing. The episode distinguishes investors, traders, speculators and gamblers, and discusses how advisors can open conversations about risky investment behaviors such as sports betting or day trading.

1. The episode covers Betterment’s 2026 Retail Investor Survey findings on Gen Z investors and sports betting.
2. It compares Gen Z’s financial prospects and likelihood to contribute to workplace retirement programs with Gen X and millennials.
3. It explains psychological mechanisms such as dopamine, variable reward schedules, recency bias, near-miss effects, social proof and loss chasing.
4. It distinguishes investors, traders, speculators and gamblers, and discusses ways advisors can start a healthy discourse around risky investment behaviors.