Fintech Takes Fintech Takes: Gambling is the Biggest Threat to Consumers’ Financial Health
Oct 8, 2025
Gambling is increasingly threatening consumers' financial health, with platforms like Robinhood and Coinbase crossing into betting territory. The rise of Speculation-as-a-Service poses risks to traditional banking models, as gambling undermines savings and investments. Innovative saving strategies, such as Prize-Linked Savings Accounts, show potential, but there's concern over future backlash against exploitative gambling practices. As the competition heats up, banks must adapt to protect their customers' financial well-being amidst a landscape of blurring lines between finance and betting.
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Gambling Is The Top Financial Threat
- Gambling is the largest threat to consumers' financial health, bigger than fees or low savings yields.
- Legalized sports betting reduces net investment and increases searches and social harms tied to gambling.
Sports Betting Cuts Investment Dollars
- Legal sports betting correlates with lower investments and higher searches for gambling addiction help.
- Every dollar on sports betting reduces net investment by roughly $2.13 and harms other social outcomes.
Speculation-As-A-Service Threatens Banks
- Speculation-as-a-service blurs lines between gambling and financial services and threatens incumbents.
- Companies like Robinhood and Coinbase use speculative products to keep users active, not because the bets have positive expected value.