The Rising Tide of Underage Sports Betting: Risks, Loopholes, and What’s Being Done

The rapid expansion of legal sports betting in the United States has opened a fresh frontier for a concerning trend: a surge in illegal wagering by minors. While the industry generated over $1 billion in bets in 2025 and is projected to attract $1.7 billion for this year’s Super Bowl [1], investigators are finding that young people are increasingly finding ways to circumvent age restrictions and participate in online gambling.

The Scale of the Problem

Legalized sportsbooks like DraftKings and FanDuel are collectively facing thousands of underage betting attempts annually [2]. A USA TODAY analysis revealed that these companies file “suspected fraud reports” to state regulators, but consequences are often limited to a ban from the app. One case involved a 17-year-old in Arizona using his mother’s ID to create an account on BetMGM, depositing $75 through ApplePay, and betting on basketball and football games before being caught [2]. Despite being banned, he resumed betting once he turned 21.

Mental Health and Addiction Concerns

The accessibility of online gambling, with platforms essentially offering “a casino in their pocket 24 hours a day,” is raising serious concerns about the mental health of young people [3]. Illegal sports betting by minors puts their mental health at risk [1]. Gambling addiction, or gambling disorder, can lead to significant financial losses, increased risk of suicide, and domestic violence [3].

Industry Response and Regulation

Since the Supreme Court legalized sports wagering in 2018, the industry has experienced explosive growth. However, critics argue that marketing tactics employed by sportsbooks like DraftKings and FanDuel cast a wide net, attracting underage individuals alongside those legally permitted to bet [1]. While sportsbooks are required to file fraud reports, penalties are often minimal. Pending class-action lawsuits allege that some companies may be intentionally “grooming” young men on their sites in anticipation of their 21st birthdays [2].

The Broader Context of Gambling Addiction

Globally, nearly 450 million adults engage in “risk gambling,” impacting their finances, mental health, relationships, and perform [3]. The ease of access to online gambling platforms, coupled with sophisticated marketing techniques, makes it easier to start and harder to stop [3].

Resources for Problem Gambling

If you or someone you know has a gambling problem, help is available. You can contact the National Council on Problem Gambling 24/7 at 1-800-GAMBLER (NJ, OH), 1-800-522-4700 (CO), 1-800-BETS-OFF (IA), or 1-800-9-WITH-IT (IN).