Many parents today feel reasonably confident discussing financial topics with their children.
We talk about budgeting. We talk about saving. We talk about responsible credit card use before teenagers leave for college. Banking apps like Greenlight and Step have made it easier than ever to start teaching about money sooner.
But there is another financial risk emerging that many families aren't prepared for: the rapid rise of online gambling among teenagers and young adults.
This isn't just about casinos or sports betting apps. A growing digital ecosystem of sports wagering platforms, prediction markets, gambling-like video game mechanics, and social media promotions is exposing many young people—especially boys—to betting behavior earlier than ever before.
Recent research from Common Sense Media's "Betting on Boys" study found that more than one-third of boys ages 11-17 reported gambling within the past year. Researchers also found that many boys first encounter gambling-like behavior through video games, social media content, loot boxes, and other digital reward systems that blur the line between gaming and wagering.
For parents, the concern isn't simply whether a teenager is placing a bet today. It's that early exposure may contribute to financial and behavioral habits that can carry into adulthood.
A New Version of an Old College Problem
For decades, universities struggled with aggressive credit card marketing aimed at young adults.
Students who had never managed debt before suddenly found themselves surrounded by sign-up offers, promotional gifts, and easy access to credit. Many learned hard lessons about financial responsibility only after accumulating balances they couldn't afford to repay.
Today's online gambling ecosystem bears some striking similarities.
Many betting apps offer significant sign-up promotions, referral bonuses, free-play credits, or other incentives designed to encourage new users to open an account and begin wagering immediately. Social media influencers regularly share picks, bets, and screenshots of winnings, creating the impression that participation is a normal part of college or life of a young adult. It seems aspirational and like ‘easy money.’
The difference is that losses can occur almost instantly.
Unlike a credit card bill that arrives weeks later, online gambling platforms allow users to place wagers within seconds and receive immediate feedback. Live betting, in-game wagering, and constant app notifications create an environment that may encourage more frequent participation.
Experts have raised concerns that these features can reinforce risky behaviors, particularly among younger users whose financial habits are still taking shape.
Sports Betting Is Only Part of the Story
Most parents have heard of platforms like DraftKings or FanDuel. Fewer are familiar with the broader range of gambling-adjacent experiences now available online.
Many teenagers first encounter gambling-like behavior through video games or apps that incorporate chance-based rewards. Others are exposed through social media content where influencers discuss betting strategies, share winnings, or promote gambling platforms. Still others experiment with token-based systems that mimic wagering while operating outside traditional gambling frameworks.
The key challenge is that gambling often doesn't even look like gambling anymore.
It can look like entertainment. It can look like gaming. It can resemble investing. It can even be marketed as a form of community participation.
And because these experiences are woven into digital platforms that teenagers already use, exposure often occurs without parents even realizing it.
Researchers from Common Sense Media found that nearly half of adolescent boys reported seeing gambling-related content, despite only a small percentage actively searching for it. In many cases, the content simply appeared in social feeds, gaming environments, or recommendation algorithms.
The Rise of Prediction Markets
A newer development is the rapid growth of prediction market platforms such as Kalshi and Polymarket.
Unlike traditional sportsbooks, these companies position themselves as marketplaces where users "trade" on the outcome of future events. Participants may speculate on everything from economic indicators and elections to sporting events and entertainment outcomes.
To many young adults, these platforms can feel less like gambling and more like investing.
That distinction matters because prediction markets are often discussed differently than sportsbooks, despite concerns from some addiction experts that they may trigger similar behavioral responses.
A recent CNBC report highlighted growing industry speculation that 18-to-20-year-olds may be playing a meaningful role in the growth of prediction markets. Because many traditional sportsbooks require users to be 21 in numerous states, prediction markets may be filling a gap for younger adults who are legally permitted to participate at age 18.
For parents, the takeaway is not necessarily whether these platforms meet a technical definition of gambling. The more important question is whether they may reinforce similar behaviors, such as risk-taking for entertainment, chasing quick wins, and normalizing speculative activity.
I’m not here to say all gambling is bad, but increasing exposure to risk-based activities at a young age is something parents may want to think carefully about.
Why Boys Are Particularly Vulnerable
The available research consistently shows that young men are among the most frequent participants in online sports betting and gambling-related activities.
Part of the reason is cultural.
Sports fandom, competition, statistics, gaming, and performance tracking are often areas where boys spend significant amounts of time. Many gambling platforms are specifically designed to intersect with those interests.
Sports broadcasts now routinely include betting odds as part of game coverage. Social media feeds celebrate massive wins. Influencers frame wagering as entertainment. Gaming environments incorporate reward systems that mimic gambling.
Individually, each element may seem harmless. Collectively, they can normalize gambling during some of the most formative years of adolescence.
As parents, we often focus on the obvious financial decisions our children will face—college loans, credit cards, first apartments, and first jobs. We may spend less time discussing gambling simply because it wasn't nearly as accessible when we were growing up.
The Mental and Financial Impact
Not every teenager who experiments with sports betting or prediction markets will develop a gambling problem, but we should be aware of the risks.
The National Council on Problem Gambling reports that young people who participate in online sports betting and gambling-like gaming experiences are more likely to experience problematic gambling behaviors. The research also states that young males may face elevated risk.
Researchers and clinicians have also raised concerns about the highly accessible nature of mobile betting. Smartphones allow users to gamble at any time, receive constant prompts to return, and place wagers with very little friction. Several experts have warned that these characteristics can increase addiction risk among young adults.
The financial consequences may extend beyond the bets themselves.
Research highlighted by the American Institute for Boys and Men found associations between expanded sports betting access and higher levels of financial distress, including lower credit scores, increased debt collection activity, and higher bankruptcy rates. The effects appeared particularly pronounced among younger men.
Those findings are especially concerning because financial habits established during late adolescence and early adulthood often persist for decades.
What Parents and Grandparents Can Do
As a financial planning firm, we spend a lot of time helping families prepare for the future.
That preparation isn't limited to investment portfolios, retirement plans, or estate documents. It also includes helping the next generation develop a healthy relationship with money.
Online gambling is becoming part of that conversation. Parents don't need to become experts on every platform or app. Instead, start with curiosity.
Ask your teenager:
- Do you see betting content on TikTok, Instagram, YouTube, or sports broadcasts?
- Have friends encouraged you to sign up for betting or prediction market apps?
- Have you been offered bonus money or incentives to create an account? Why do you think they make such big offers to convince you to join?
- Do you understand how these companies make money?
- What do you think happens to most people who participate?
For grandparents, this may be another opportunity to share financial lessons learned through experience. Many have seen firsthand how debt, speculation, and emotional decision-making can impact long-term wealth. Offering that insight in the form of stories as opposed to “telling” them what to do or giving advice could be more successful.
While the technology has changed, the underlying principle has not: When financial decisions are packaged as entertainment, it's worth slowing down and asking who is really expected to win.
