A college student loses their tuition payment in a night of smartphone blackjack. Sound far-fetched? Events like this may be more common than you think. This is the reality of online gambling, a far cry from driving to the casinos or racetrack. Now there is 24/7 access via sleek apps and websites on devices already in young adults’ hands.
The issue is not just “gambling,” but the risk of a potent, algorithm-driven behavioral addiction facilitated by technology. The distinction between gambling and video gaming has been blurred in ways that make gambling more appealing and accessible to young people. In this Insight, I explore this important problem.
Online Gambling: Significant Risks for Young Adults
This new form of gambling exploits the neurodevelopmental and social characteristics of young adults, leading to a distinct and dangerous addiction pathway for some. Gambling can stimulate the brain’s reward system much like drugs or alcohol can, leading to addiction. Most people tend to underestimate the number of young people who engage in gambling behavior [1].
Online gambling addiction poses significant risks for young adults, with higher prevalence rates among this group compared to the general population, particularly linked to easy access via smartphones and apps.
Online Gambling Among Young Adults: The Facts
Studies indicate that 8.5-10% of men aged 18-30 show signs of problem gambling. This far exceeds the 3% overall rate in the general population, often tied to online sports betting and slots [2].
They often experience high levels of harm like debt and regret; youth online gamblers face 5 times higher problem rates than non-online gamblers.
- Online betting on sports is concentrated among young men: only 10% say that they’ve bet on sports or racing online in the last year, but 26% for men under the age of 45.
- 19 percent of women 30 and under say that they’ve bet on a game or a race in the past year.
- 8.5% of young adults aged 18-24 were classified as problem gamblers, according to the National Council on Problem Gambling. This was the highest rate of any age group. The overall adult rate was 1.3% [3].
Common Types of Gambling Activity
With the convergence of elements of video game design within gambling sites, there is a range of types of activity. Beyond traditional types of gambling, youth gambling activities include a variety of unconventional forms [1].
Loot boxes/loot crates: Loot boxes are mystery video game “grab bags” containing virtual items such as weapons or armor that are rewarded via gameplay or purchased with real money or in-game currency. Choosing to open them is a form of gambling.
Social casino games: These are free-to-play gambling-themed games available on social media or mobile apps. They have their own virtual in-game currency. These games typically introduce youth to gambling at an early age and offer better odds of winning, which can lead to gambling for money.
Skins betting: “Skins” (which can be obtained through loot boxes) are virtual, in-game items that provide cosmetic alterations to a player’s weapons, avatar, or equipment without increasing the character’s abilities. Skins have value as a “collector’s item.” A gambling subculture on unregulated websites allows skins to be used as currency to place bets on e-sports or other games, such as roulette. Underage gambling is a major concern.
E-sports betting: E-sports are organized video game competitions between highly skilled game players or teams that fans watch either online or in person, where the event is being held. A high proportion of participants are young adults who can also bet with “skins.”
Why Young Adults Are Uniquely Vulnerable
There is a perfect storm of factors contributing to the crisis of problem gambling in young adults.
Neurodevelopmental Factors
- The prefrontal cortex (responsible for impulse control and risk assessment) isn’t fully mature until the mid-20s. Young adults may underestimate the potential risks involved.
- Heightened sensitivity to dopamine rewards, making the “near misses” and variable rewards of gambling intensely compelling.
The Digital Native Environment
- Young adults have grown up with seamless digital transactions and app-based entertainment; gambling is just another tap away.
- Young adults are vulnerable due to developing brains wired for reward-seeking, impulsivity, and peer influences via social networks and apps.
- Game designers have blurred the lines between gaming and gambling (e.g., loot boxes, skin betting, social casino games).
Marketing and Design Tactics
- “Risk-free” bets, welcome bonuses, and free play modes lower the initial barrier to entry.
- Gambling is normalized and even glamorized by celebrity and influencer endorsements.
- Social media integration with various apps further deepens user engagement, making it even more enticing and harder to stop gambling
- Relentless, tailored engagement loops are deliberately created by using personalized data and push notifications.
Other Risks
- Additional risks include [4]:
- Male gender
- Having parents with gambling problems
- Possessing greater impulsivity
- Substance use
- Low school belonging
- Co-occurring mental health issues, such as depression or anxiety
- Having an earlier age of first gambling activity
- Having areas of poor functioning, including medical, psychiatric, and/or substance use disorders, and family/social problems
From Habit to Harm: The Progression and Consequences of Addiction
The Slippery Slope
- Casual play escalates with chasing losses to regain lost bets, increasing bet sizes, and spending more time and money than intended, indicating when recreational gambling becomes a serious problem or even an addiction.
The Multi-Dimensional Fallout
There are many negative consequences of problem gambling, including:
- Financial: Catastrophic debt, drained savings, ruined credit, stealing, or borrowing to fund addiction.
- Mental Health: Intense anxiety, depression, shame, and suicidality (young male gamblers have one of the highest suicide rates among addicts).
- Academic/Professional: Failed courses, lost jobs, and abandoned career goals due to preoccupation and time spent gambling.
- Social Consequences: Isolation, lying to friends and family, and breakdown of trust in key relationships are leading indicators of problem gambling or addiction.
Barriers to Recognition and Recovery
Gambling is notoriously difficult to regulate, as the technologies themselves are not transparent in how they work, nor in the money flowing to them, estimated to be in the billions of dollars. Barriers include:
- The Hidden Nature: Unlike substance abuse, there are no physical signs; all activity happens privately on a device. Many “skin-gambling” sites do not explicitly declare their ownership and may be operated by offshore agencies, leading to issues involving transparency and promotion.
- Perception as a “Harmless Habit”: Compared to other addictions, there is little stigma associated with problem gambling, as it is a private activity. It may often be dismissed as a “bad choice” rather than a medical condition.
- Systemic Hurdles: College and university health services or primary care physicians generally don’t provide screening for gambling. Insurance coverage for treatment can be limited.
- The Illusion of Control: The skill-based elements of some online formats, such as sports betting and poker, encourage the belief that one can “beat the system” through study. This only serves to perpetuate the cycle.
Signs and Symptoms
Common indicators of problem gambling, a behavioral addiction, include:
- Constant thoughts about gambling
- Chasing losses
- Irritability when stopping
- Obsession despite harms
- Guilt
- Emotional withdrawal, such as anxiety or depression
- Financial issues such as borrowing or selling valuables.
Treatment Options
There is a range of options, including:
- Cognitive Behavioral Therapy (CBT), which effectively changes gambling thoughts and behaviors, shows promise in youth in individual or group sessions.
- Motivational interviewing
- Treating co-occurring conditions
- Inpatient rehab for severe cases
- Support services such as GamTalk, which is now part of Evive, provide a mobile app and online community for anyone experiencing gambling harm.
- Self-directed support sites such as ResponsibleGaming.org provide resources to help consumers limit their gambling
Prevention, Support, and Policy
The rise of online gambling, now valued in the billions of dollars, is a critical, growing threat to a generation’s well-being. Protecting young adults requires a concerted effort from legislators, tech regulators, educators, health professionals, and families. Given the high percentage of young adults who engage in online gambling, the stakes are too significant to overlook.
Individual and Educational Interventions
High schools and universities should implement mandatory, evidence-based education about the specific risks of online gambling, including financial literacy and digital wellness.
Regulatory and Corporate Responsibility
A variety of initiatives should be instituted to increase corporate responsibility:
- Advertising Bans: Strict limits on advertising should be established and enforced on social media platforms popular with youth, and especially during sports events.
- Design Regulations: Affordability checks should be mandated; “lightning” fast games should be banned; deposit amounts should be limited, and self-exclusion tools simplified.
- Clearer Boundaries: Loot boxes and skin betting (a form of virtual currency) are gambling, not gaming. Regulations should reflect this.
Improving Treatment Access
Training should be provided for therapists in behavioral addiction treatment models such as Cognitive Behavioral Therapy for gambling. Support networks, including peer groups such as Gamblers Anonymous and the Responsible Gambling Council, and tailored online resources, should be strengthened.
How Engage Young Adult Transitions Can Help
At Engage, we are ready to support you in our welcoming community if you identify as LGBTQ+.
Engage Young Adult Transitions is a transitional living program and therapeutic community that assists young adults on their path to independence. Using attachment theory, we provide a foundation for forming connections, getting involved with the community, managing mental health, and building life skills for long-term success.
Engage offers structured autonomy and high support, without creating dependence. Our therapists and life coaches are here to honor the young adults’ need to gain independence and freely move to a more secure sense of self and their relationships.
Located just steps from Southern Utah University in Cedar City, we offer access to services seven days a week, including academic support, vocational training, career guidance, life skill coaching, mental health therapies, and recreational activities.
Our community offers high levels of therapeutic support that honor autonomy and independence while guiding young adults to a life of freedom, emotional wellness, and success.
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Sources
[1] CAMH. nd. Youth and problem gambling.
[2] Fairleigh Dickinson University. 2024. Online Betting Leads to Problems for Young Men.
[3] National Council on Problem Gambling. 2021. National Survey of Gambling Attitudes and Gambling Experiences (NGAGE 2.0) 2021.
[4], Wilber, M. K., & Potenza, M. N. (2006). Adolescent gambling: research and clinical implications. Psychiatry (Edgmont (Pa. : Township)), 3(10), 40–48.