Youth Gambling and Problem Gambling: What Parents, Guardians & Caregivers Need to Know

How common is youth gambling?

The rise of legalized gambling in the U.S., along with online gambling and sports betting, has made it more appealing to younger people. It’s easier than ever for young people to gamble, which raises the risk of underage gambling and developing problematic gambling behaviors. Although underage gambling is illegal across most of the United States, many young people—those under 18 for the lottery and under 21 for sports betting in Vermont—still find ways to gamble. This includes activities that may not seem like gambling at first, such as social games, video game loot boxes, or informal bets with friends. Although these activities may seem harmless, they carry risks similar to traditional gambling.

 The numbers of youth engaged in gambling activities might surprise you. In Massachusetts, a 2021 report found that over 40% of middle and high school students had gambled in the past year, including buying lottery or scratch tickets, betting on games, and sports betting (MDPH 2024). While adults are more likely to gamble to win money, youth are more likely to gamble as a way to relieve boredom or loneliness, escape negative emotions, socialize or compete with peers (Derevensky & Gilbeau, 2015).

How are video games connected to gambling?
The overlap between video gaming and gambling can confuse young players about the risks. Many video games feature elements like chance-based rewards, skins, and loot boxes, which resemble gambling. These in-game features can make gambling feel more familiar and less risky to young players. The excitement of winning in video games can encourage players to spend more money, which increases the likelihood of developing gambling problems later on. Teens aged 12 to 17 who play social casino games and gamble in video games are more likely to develop gambling problems (Stark et al., 2020).

What are loot boxes, and why do they matter?
Loot boxes are virtual containers in video games that hold random items, like character skins or weapons, which players can buy for a chance to get something valuable. While many young players view loot boxes as just a fun part of the game, purchasing them is like gambling. Players spend money to open these boxes, not knowing what they will get, which makes it a chance-based activity like gambling. Research shows that loot box purchases are common among youth (Hall et al., 2021; Zendle et al., 2019). In the UK, the Young People and Gambling (2023) report found that 21% of 11- to 17-year-olds paid to open loot boxes in the past year. There is growing concern that spending money on loot boxes may be linked to gambling-related harm in young people (KMB CAMH 2024). A study of older youth (aged 16-18) found that the more money they spent on loot boxes, the greater the severity of their problem gambling (Zendle et al., 2019). This highlights the potential risks of loot boxes, as they can contribute to the development of gambling problems.

What are skins, and why do they matter? “
Skins” are virtual cosmetic items in video games that modify the appearance of a player’s weapons, avatar, or equipment, without affecting gameplay or enhancing the character’s abilities (KMB CAMH 2024). Although they don’t provide any competitive advantage, some skins can become sought-after collectibles, particularly if they’re rare (KMB CAMH 2024). On certain unregulated websites, players can use these skins as a form of currency to place bets on games or e-sports events (KMB CAMH 2024). This practice has raised concerns about underage gambling, as these sites often don’t require age or ID verification (Greer et al., 2019; KMB CAMH 2024).

What are social casino games?
Social casino games are free-to-play gambling-themed games available on social media or mobile apps (KMB CAMH 2024). These games use virtual currencies (e.g., credits, coins, or dice), which players can earn through activities like watching ads or referring to friends or purchased with real money (KMB CAMH 2024). Although it is not real gambling, these games often expose young players to gambling concepts and can lead to a desire to gamble with real money. They tend to offer better odds of winning, which can increase the likelihood of young players transitioning to real-money gambling (Velselka et al., 2018).

How common is gambling on sports among young people?
Sports-related gambling, including activities like sports betting, daily fantasy sports, and esports betting, is becoming more popular among youth. A 2023 study by the UK Gambling Commission found that betting on esports was the most common form of online gambling among 11-17-year-olds (UK Gambling Commission, 2023). Research indicates that young people who frequently participate in sports betting are at an increased risk for developing gambling problems and experiencing gambling-related harm (Marchica et al., 2016).

Are young people at risk for developing a gambling disorder?
Yes, young people are more at risk for developing a gambling disorder. Research shows that people aged 10-24 have higher rates of problem gambling than adults (Boak et al., 2018; Calado et al., 2017; lalomiteanu et al., 2018). Starting to gamble at a young age can lead to bigger problems later. For example, kids who start gambling by age 12 are four times more likely to develop a gambling disorder as they grow older.

In the U.S., a study (Mercer 2022) found about 5% of children aged 11-17 have gambling problems, such as enjoying the thrill of gambling, borrowing money to keep playing, or continuing to gamble despite losing money, hoping for a big win. Additionally, 10-14% of these youth were at risk of developing a gambling disorder, showing early signs of losing control. 

Why are young people more at risk of developing a gambling disorder?
Several personal and social factors can increase the chances of young people developing problems with gambling, especially if they are experiencing:

  • Alcohol or substance use
  • Mental health challenges like depression or anxiety
  • Past trauma or difficult life experiences
  • Impulsivity or ADHD
  • Difficulty making friends or feeling connected to family or school
  • Limited coping skills
  • A lack of belonging at school
  • Thrill seekers or those who enjoy excitement or risky activities


Family, Friends, and Peer Pressure play a major role in youth gambling. When young people are exposed to gambling early, especially if a parent or family member gambles regularly or has a gambling problem—it can feel normal, increasing their own likelihood of gambling. Studies show that kids with parents who gamble are more likely to do so themselves (Donati et al., 2023). This influence can lead to other risky behaviors, like drinking alcohol or using drugs. Young men, particularly those between 15 and 25, face an even higher risk of developing gambling issues due to social pressures and a desire for thrill-seeking activities.

Adolescence, Risk-Taking, and Brain Development: The teenage years are a time when young people often take more risks and try new things. This exploration is linked to the development of areas of the brain responsible for decision-making and rewards, like the prefrontal cortex, which continues to develop until about age 25.  Because these areas are still developing, young people may be more susceptible to developing gambling problems as they are still learning to evaluate risks and control their impulses.

The Impact of Gambling Marketing: Exposure to gambling marketing increases the risk of youth developing a gambling problem. Marketing on TV, local casino ads, social media, and other places makes gambling look like harmless fun. This can make younger people, especially those under 18, more interested in gambling. Seeing gambling ads while growing up affects how kids think about gambling and can raise their risk of developing a gambling disorder or problematic gambling behaviors.

Sources: Afifi et al., 2016; Bergevin et al., 2006; Chinneck et al., 2016; Derevensky et al., 2007; Dickson et al., 2008; Dowling et al., 2017; Edgerton et al., 2015a, 2015b; Felsher et al., 2010; McBride & Derevensky, 2016; MACGH 2024

What challenges might youth with gambling problems experience?

While more research is needed to fully understand the effects, early studies show that young people with gambling issues may face a variety of challenges, such as:

  • Mental Health Issues: Higher risk of anxiety, depression, and other emotional difficulties.
  • Excessive Video Gaming: Often linked to gambling behaviors, creating additional challenges.
  • Family Conflict: Gambling problems can strain family relationships and create stress at home.
  • Academic Struggles: Gambling may distract from school, leading to poorer academic performance.
  • Difficulty Socializing: Gambling can impact friendships and social skills.
  • Financial Risks: Young people may not fully understand the financial consequences, leading to debt and instability.
  • Substance Use: Increased risk of developing substance use disorders.
  • Suicidal Thoughts: A higher risk of suicidal thoughts or behaviors.
  • Criminal Behavior: Some may turn to illegal activities to fund their gambling.

Sources: Afifi et al., 2016; Apinuntavech et al., 2012; Brunelle et al., 2012; Cook et al., 2015; Derevensky & Gilbeau, 2015; Dickson et al., 2008; Neighbors et al., 2002; Nower et al 20-4)

What kinds of mental health issues are common among young people with gambling problems?

Gambling at a young age can affect mental health and brain development, leading to issues like anxiety, depression, and other emotional challenges. Teens with gambling problems are more likely to experience mood disorders, anxiety, or even substance use disorders (Ferrara et al., 2018). Research shows that youths with serious gambling issues are also at much higher risk of suicidal thoughts and attempts compared to their peers who don’t gamble or only gamble socially (Cook et al., 2015; Nower et al., 2004).

What are the warning signs that my child or a young person in my life might have a gambling problem?

It can be difficult to know what to look out for, especially if your child or a young person in your life isn’t gambling in front of you. However, several financial, behavioral, emotional, and social changes may indicate a gambling problem. Here are some signs to watch for:

Unexplained Financial Signs

  • Frequently asking for money or hiding financial records or payslips.
  • Money missing from their bank accounts, wallet, or purse, or from household items.
  • Regularly being short of money, despite having a source of income.
  • Missing valuable household items, which could indicate they are using money in hidden ways (such as gambling online or using a parent/guardian’s credit card or online payment accounts) (YGAM, 2024).

Mood and Behavioral Signs

  • Social withdrawal: Spending more time alone, especially on devices like phones or computers, could indicate they are engaging in online gambling or fantasy sports betting without your knowledge (YGAM, 2024).
  • Changes in mood or behavior: Unusual mood swings, irritability, anxiety, or stress for no apparent reason may be linked to gambling (YGAM, 2024). Other changes may include manipulative behavior, using lies or charm, and shifts in sleeping, eating patterns, or relationships (YGAM, 2024). These may be signs of emotional distress or shame related to gambling losses or attempts to hide gambling from you.
  • Declining academic performance: A drop in grades and decreased participation in school activities could be linked to a gambling problem. (YGAM, 2024).

Time-Related Signs

  • Changes in commitment: If they are often late for commitments, skipping school, taking many sick days, or spending excessive time on tasks without a clear reason, these could be signs of a problem (YGAM, 2024). They may be prioritizing gambling activities over regular responsibilities.

 

What Can You Do If You Think Your Child or A Young Person You Know Has a Gambling Problem?

If you suspect that your child or a young person you know is struggling with a gambling problem, it’s important to take action early. Addressing the issue with care and compassion can help prevent the problem from escalating. Here are some steps to consider:

 

  1. Start an Open and Non-Judgmental Conversation
  • Approach the situation with empathy and understanding. Begin by expressing concern about their behavior, not by accusing them of wrongdoing.
  • Ask open-ended questions and listen to their responses without judgment. Let them know that you’re there to help, not to punish them.
  1. Seek Professional Help
  • Cognitive-Behavioral Therapy (CBT) has been proven to be effective in helping young people change their gambling behaviors (Ladouceur et al., 1994; Larimer et al., 2012).
  • Motivational interviewing or personalized feedback may also be helpful, especially for older teens or young adults (St-Pierre & Derevensky, 2016).
  • Family-based interventions, such as parental monitoring and involvement, have shown to be effective in reducing problem gambling in young people (Allami et al., 2018; Dickson et al., 2008). Encouraging family involvement can provide much-needed support and accountability.
  1. Address Co-Occurring Mental Health Issues
  • If the young person is struggling with mental health issues such as anxiety or depression alongside gambling, it’s important to address both issues simultaneously. Coordinated care with healthcare providers can offer a comprehensive approach to treatment (Ferrara et al., 2018).
  • If your child expresses suicidal thoughts, take immediate action by seeking professional support.
  1. Educate Yourself and Your Family
  • Learning about problem gambling will help you understand the treatment process and how best to support your child. It’s important to stay informed about the signs, risks, and resources available.
  • Consider reaching out to local resources such as counselors, support groups, or mental health services in Vermont for guidance and assistance.
  • Here are some additional resources on youth and gambling:

 

How Can I Help My Child Develop Healthy Hobbies and Interests That Don’t Involve Gambling?

Encouraging your child to develop healthy hobbies and interests that don’t involve gambling is an important step in promoting well-being and protecting them from the risks associated with gambling. Here are some strategies to help your child build positive habits:

  • Limit Exposure and Create a Screen-Time Plan: Monitor and set boundaries on media that promotes gambling, such as video games that include in-game purchases, social casino games or sports betting ads. Consider implementing safe internet search settings and using software to block gambling-related sites (YGAM, 2024).
  • Manage Access to Your Financial Funds: Make sure your credit or debit cards are not linked to accounts your child may access for video games, social casino games, or in-game purchases (e.g. loot boxes and skins). These in-game credits or rewards might not be clearly labeled as real money purchases (YGAM, 2024). Review any digital purchases made and consider setting parental controls.
  • Encourage Healthy Hobbies: Help your child explore new hobbies and interests that don’t involve gambling. Encourage activities like sports, arts, reading, volunteering, or developing new skills like cooking. These hobbies can provide a sense of achievement, social connection, and fun, all without the risks associated with gambling. Spend time engaging in these activities as a family. This can strengthen your bond while offering healthy, enriching experiences that serve as alternatives to gambling.

Hope to win, expect to lose.

You decide how much money to bet and be comfortable losing it. Enjoy the game regardless of the outcome!