Students pursuing medical degrees are hoping that prediction markets will fund their studies, according to new survey data.
Clasp, an organization that helps pair medical talent with organizations and institutions in need of their skills, released its inaugural “State of Healthcare Student Finances” report on Tuesday. Researchers ultimately found that students sought atypical methods of funding their education, including using prediction markets.
Using prediction markets to pay for education
The modern financial climate has proven to be tricky for individuals of many ages, especially those pursuing higher educational degrees.
Education Loan Finance, a private lender operated by SouthEast Bank, noted that students can expect to spend between $300,000 and 400,000 on the average medical degree, depending on if they attend a public or private university. The median four-year cost has increased by around $50,000 (16%) since 2020.
With that in mind, the study investigated non-traditional income sources used by 1,000 healthcare students. That includes using OnlyFans, a platform known for housing adult content, prediction markets, and sports betting as a means of generating income.
“The survey finds that more than 1 in 4 (27%) have used a betting or prediction market platform,” Clasp wrote about the study, which was executed by Pollfish. “Two-thirds of student bettors (67%) treat winnings as real or potential school money: 24% say winnings are part of their plan to pay for school, and another 43% say it could help.”
The 27% of students who said they used sportsbooks or prediction markets to generate educational funding is telling. Prediction platforms age-restrict users below 18, while sportsbooks require bettors to be at least 21. That means these platforms, which handle billions of dollars, are being counted on by individuals who were only recently granted access.
Students more likely to use prediction markets
Of the students who indicated they used prediction markets or sportsbooks, half said they’d used DraftKings’ sportsbook or exchange. 42% said they used FanDuel, and 31% claimed to have accessed Polymarket’s prediction markets.
A further analysis revealed that 15% of healthcare students used prediction markets or sportsbooks daily, which Clasp noted was much more than the 4% average for 18-22-year-olds as a whole.
Despite the increase in utilization, the majority of respondents said they did not make more money than they risked.
“Asked whether these platforms have made or cost them money, only 40% of student bettors say they’re net positive; half say they roughly break even,” notes Clasp. “The most common amount won or lost is $100 to $1,000, and 1 in 10 report amounts over $5,000. Two respondents reported wins or losses above $50,000.”
Even a 40% breakeven rate would be exceptional. The vast majority of sports bettors are negative, and prediction market winners are concentrated to an estimated 20-30% of the user base, depending on the platform. Available markets include elections, sports, finance, weather, pop culture, and additional industries.
Other means of income
In addition to prediction markets and sportsbooks, 21% said they attempted to make money using platforms such as TikTok, YouTube, OnlyFans, or Substack.
6% sold revealing pictures of their bodies, and 10% considered donating eggs or sperm to help fund their education.
The Trade Handle Prediction Markets Take
Prediction markets pride themselves on being more than sports betting as a financial instrument for users. Although the majority of users do not turn a profit, prediction traders are more likely to walk away in the green than they are at sportsbooks. Responsible trading practices are still encouraged for all users, including students.