Signs of Teen Gambling: Spotting Red Flag Indicators

It can be a normal and often expected part of adolescence to experiment, test boundaries and take risks. For many teens, that experimentation includes exposure to alcohol, tobacco or drugs. Nowadays, gambling presents a similar and at times overlooked risk. Because it is directly affected by brain development, early exposure to gambling can carry long-term consequences, making early, honest conversations with children especially important.

Although gambling is illegal for those under 18, many adolescents still finds ways to engage in betting activities. In fact, research show that gambling disorders can begin as early as age 10, underscoring how early exposure can shape behavior. Gambling addiction has also been linked to substance abuse, depression and an increased risk of suicide, making awareness and prevention critical for parents and caregivers.

Where Does Teen Gambling Begin?

Sports betting is now legal in 39 states, and gambling apps have become widely accessible. As a result, young people are encountering betting-related content earlier than ever, often through platforms that may appear harmless. Newer forms of gambling — including daily fantasy sports (DFS), online poker and sports betting — are particularly common among teens. Some adolescents are introduced even earlier through lottery tickets given by parents or other adults as holiday gifts.

Video games and mobile games can also play a significant role. Many now include features such as loot boxes, virtual cash and prize-based rewards, which closely resemble gambling mechanics and can normalize the behavior long before teens or their parents recognize the risks.

Spot the Warning Signs

Because teen gambling is often hidden, recognizing early warning signs is essential to preventing it from escalating. Common indicators include increased aggression or defensiveness, declining interest in school, excessive time spent online, and emerging mental health concerns such as anxiety or depression. Financial red flags, such as missing money or unexplained access to cash, may also signal a problem.

Practice Prevention

Effective prevention begins with parental awareness and modeling. Parents should consider how their own attitudes toward gambling, such as playing the lottery or poker, may influence their children. Setting clear boundaries around screen time and online activity can limit exposure to gambling apps, mobile games, and sports betting platforms. If a teen asks to use a credit card or digital payment system, it’s important to understand exactly why and to discuss finances with them at an early age.

Common types of gambling activity

According to the Pew Research Center, 1 in 5 Americans has gambled in the past year, and participation continues to rise among teens and young adults. Gambling generally falls into two categories: chance-based and skill-based.

Chance-based gambling relies entirely on uncontrollable outcomes, such as lottery games, while skill-based gambling, such as poker or blackjack, allows players to believe they can influence results through strategy. This perception of control can make skill-based games particularly appealing to young people, despite the games still being designed to favor the "house" over the players.

Online Sports Betting

Online sports gambling has rapidly become one of the most accessible and influential forms of gambling for teens and young adults. Mobile apps allow users to place bets instantly, often with minimal friction. These platforms are heavily promoted through social media, live sports broadcasts, podcasts and influencer partnerships, all channels that reach adolescents well before they reach legal gambling age.

Unlike casino gambling, sports betting is often framed as skill-based rather than chance-based. Odds, statistics and "expert" commentary can give young bettors the illusion that knowledge or fandom improves their chances of winning. For teens whose identities may be closely tied to sports, this perceived control can be especially compelling, increasing both engagement and risk-taking behavior.

Live or “in-play” betting further heightens the risk. This lets users to place bets in real time as games unfold, allowing for potential impulsive decisions and repeated wagers within a single event. Research has shown that this rapid, continuous betting cycle is strongly associated with problem gambling behaviors, particularly among younger users whose impulse control is still developing.

The normalization of sports betting within mainstream sports culture has also blurred boundaries for teens. Betting odds are now discussed alongside scores and player statistics, making gambling feel like a routine part of watching sports rather than a high-risk activity. Early exposure to these practices increases the likelihood of problematic gambling patterns later in life, especially when combined with social influences and easily accessible mobile technology.

Loot boxes/loot crates

Loot boxes are widely used in children’s video games and remain largely unregulated in many countries, including the United States and the UK.

Studies indicate that approximately 40 percent of children who engage with loot boxes are at risk for gambling-related problems. The Problem Gambling Severity Index (PGSI) has linked loot boxes to problematic gambling behaviors, and some countries, including Belgium, have banned them altogether.

Social casino games

Casino gambling used to only take place at casinos and resorts. Nowadays, many forms of casino games are available online, with free and paid options available. Common examples include card games, dice games, slot machines and wheel-based games.

While gambling can be an isolating behavior, social casino games are designed to foster a sense of community, which can increase emotional investment and time spent playing. When their are live-chat features, this social connection can be even stronger.

E-sports betting

E-sports betting has surged in popularity in recent years, particularly among teen boys and young adult men. Advertising for these platforms is often tailored to younger audiences. As the video game industry has grown, so too have the number of individuals who develop compulsive behaviors around either playing them or betting on others who are playing.

Dangers Associated with Teen Gambling

Risk-taking is common with teens. However, experimenting with drugs and gambling during these formative years can put them at higher risk for addiction late in life. 

Gambling is a risk that’s not as easily recognized in teenagers because the signs are usually not obvious. That's why problem gambling is known as a "hidden addiction" that can be impacting someone for years without others noticing.

Increased Risk of Developing a Gambling Problem

Teens are much more likely to develop a gambling addiction, at least in part because the portion of their brain largely responsible for decision-making hasn’t fully developed yet. They therefore may not realize the risks associated with gambling.

Another reason for this factor is that most young adults are more likely to want to take risks. Some can act impulsively, especially when it comes to money and financial-related activities.

Treatment for teen gambling addiction

Teens are often willing to try something new, even if it’s risky. Most are impressionable and may be more likely to gamble if their friends are doing it. Given this increased risk, it's important to know where to turn for help if problems arise.

If you or someone you care about is struggling with a gambling problem, Birches Health can help. Birches is the leading gambling addiction provider in the United States, offering individual counseling with gambling-specialized certified counselors along with clinician-led group therapy. The Birches online care program is available in all 50 states, and costs can be covered by insurance or state funding for eligible residents. To speak with a specialist from Birches, there are multiple options available:

Book an appointment

Call 833-483-3838

Email help@bircheshealth.com