George Kamel Says This Trend Is Replacing the Stock Market — and It’s Not Good

Investors have been making money with stocks for centuries, ever since the Amsterdam stock exchange was created in 1611. Investors initially had access to only the Dutch East India Company, but financial markets have grown substantially over the years, offering more investing choices.

However, more isn’t always better, and there’s a new trend that is replacing the stock market. It’s not a good one for your money, according to money expert George Kamel.

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In a recent video, Kamel explained this new trend and highlighted how bad it can be for young investors.

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According to Kamel, sports betting is replacing the stock market.

Sports betting used to be difficult. You had to jump through several hoops and operate under the radar, but it’s now become legal in many states and very easy to access.

In his video, Kamel listed several concerning statistics about how sports betting has hurt investors. He cited a study that found net investments decreased by 14% in states that have legalized sports betting. Furthermore, people waged more than $120 billion in sports bets last year. That’s a large increase from the $6.6 billion that people waged five years prior, as reported by Money.

Additionally, sportsbook companies, like DraftKings and FanDuel, generated a combined $11 billion in revenue last year from Americans alone.

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Kamel mentioned addictiveness, accessibility and the fear of missing out (FOMO) as three critical reasons sports betting is replacing the stock market.

Gambling is very addictive for people who get started. And that’s further compounded by its accessibility. Instead of having to drive to a casino, sports bettors can download an app on their smartphone. Plus, smartphones are also built to be addictive.

Sports betting combines two highly addictive things together, making it more difficult to resist or escape. Even worse, there is a FOMO element. Every time someone wins big with a sports bet, others may feel like they can be the next winner.

These factors can keep gamblers going even when their losses pile up. But lost bets aren’t the only losses bettors are facing.

Kamel pointed to a correlation between more sports betting and higher credit card debt. Sports betting also goes hand in hand with higher overdraft fees and a disproportionately negative impact on financially vulnerable homes.