Sports Event Contracts: Selling Sports Betting as Investing

New research from the American Gaming Association reveals that when sports betting is framed and marketed as an investment, consumers start to misunderstand both the nature of the activity and the protections available to them.

78%

of sports event contract bettors incorrectly believe state gaming regulators can assist them in settling a dispute.

28%

of sports event contract bettors say “on my platform, I’m investing” compared to 9% of sportsbook users.

58%

of sports event contract bettors still view the activity as gambling, suggesting at least some users distinguish between platform messaging and underlying risk.

Responsible Gaming Tools Lag on Prediction Market Platforms

Prediction market platforms trail regulated sportsbooks in providing clear responsible gaming information and tools:

Only 28% of sports event contract bettors say responsible gaming tools are easy to find on their platform, compared with 58% of sportsbook users.
Just 34% of sports event contract bettors report seeing a responsible gaming message or tool, versus 78% of sportsbook users.

"This research reinforces why state- and tribal-regulated sportsbooks are critical, offering strong oversight and consumer protections that prediction markets simply do not match."
Bill Miller | President and CEO, American Gaming Association

What This Means

This research highlights a growing consumer protection gap. When sports betting is framed as investing, bettors are more likely to misunderstand risk, misuse funds intended for long-term financial goals, and assume protections that do not exist.

The findings underscore the importance of clear regulatory distinctions, truthful marketing, and consistent responsible gaming standards across all sports wagering products.

Methodology

Dr. Brandon Mastromartino, on behalf of the American Gaming Association, conducted an online survey December 16 to 31, 2025 among a nationally representative sample of 503 active sports event contract bettors and 523 sportsbook bettors. The margin of error is +/- 2 percent at a 95% confidence level. The research, analysis and conclusions presented here are independent of the AGA.

A person uses a smartphone; a baseball in a glove and an American football float nearby, set against a blue geometric shape on a white background.

Sports Event Contracts:

No Matter the Name, It's Still Sports Betting

Prediction market platforms are offering unauthorized nationwide sports betting under the guise of “event contracts” to evade state law and strip tribes and states of regulatory jurisdiction.

Learn More