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State of Play’s TL;DR
- Velera says credit union card data shows rising online gambling and prediction market activity.
- Gen Z is accounting for nearly two-thirds of prediction market debit transactions.
Velera’s latest card-payments data suggest online gambling and prediction markets are gaining traction faster than many financial institutions expected, especially among younger consumers.
Gen Z accounted for nearly two-thirds of year-to-date prediction market debit transactions, with Kalshi making up 88% of those transactions.
A new Payments Index report from Velera found that credit union members are increasingly using debit and credit cards for online gambling and prediction markets, adding another data point to the broader US debate over age exposure, compliance, and how event-based trading products fit alongside state gaming laws.
Gen Z stands out in prediction market spending
Velera’s report included a deeper look at online gambling and prediction market activity among members whose credit unions use the companies to process debit and credit card transactions.
Velera said prediction market weekly debit transactions and purchases climbed steadily through 2026 and surged ahead of the World Cup.
The report flagged younger users as a notable part of the trend. Younger Gen Z, defined as ages 14 to 20, represented 4% of online gambling debit transactions and posted the lowest average wager at $40.08, while also leading all generational segments in year-over-year growth.
Karen Postma, senior vice president for Risk Solutions, said:
“Online gambling and prediction markets are a small share of overall card activity, but they’re moving into the mainstream faster than many financial institutions expected, particularly among younger consumers.”
Why the numbers matter for the gambling industry
The findings land as prediction markets remain under scrutiny from regulators and state officials. The report noted that states argue platforms such as Kalshi and Polymarket are designed to circumvent state gaming laws, tax obligations, and advertising regulations.
The card data highlight two parallel developments: more mainstream consumer participation in online wagering-related products, and a growing concentration of that activity among younger users.
That should open some eyes, Postma said.
“The concentration of prediction market activity among Gen Z, combined with evolving regulation and the potential for market manipulation, creates new considerations for fraud prevention, member education, and financial wellness.”
Broader spending trends in the same report
Beyond gambling-related activity, Velera said overall debit spending in August rose 6.1% from a year earlier, while credit card spending increased 3.6%. The company said its Payments Index is based on transaction data from credit unions processing payments with Velera since January 2024.
The report covered 3.8 billion transactions totaling $196 billion in credit and debit card activity over the 12 months ending Aug. 31.
Based on reporting by Dan DuPlessis for Credit Union Times.
