Children and Online Gambling: A Growing Digital Risk

Gambling Risks in the Digital Age

Online gambling and gambling-adjacent mechanics in games and apps have expanded dramatically in recent years, and children and teenagers are increasingly exposed to them. The risks are both direct, through underage access to actual gambling sites and apps, and indirect, through gambling-like mechanics embedded in video games, social media, and other platforms that are ostensibly designed for general audiences.

Understanding the specific ways gambling exposure affects young people, and the design features that create the greatest risk, helps parents navigate this landscape and protect their children more effectively.

Loot Boxes and Gambling-Like Mechanics in Games

Loot boxes are a feature in many popular video games, both those rated for children and those rated for adults, where players pay real or in-game currency for a random selection of virtual items. The randomised reward mechanic of loot boxes is structurally identical to slot machines: the player pays for a chance at a desired outcome, with no certainty of what they will receive.

Research has established that loot box spending is associated with problem gambling tendencies, and that the relationship between loot box use and problem gambling is stronger in young people than in adults. Several countries have classified certain loot box mechanics as gambling and have moved to regulate or ban them. Parents should be aware of whether games their children play include loot boxes, and what spending is possible within them.

Other gambling-like mechanics in games include: daily login rewards that create regular reinforcement schedules, limited-time offers that create urgency and fear of missing out, and rare item systems that assign high status to randomly obtained virtual goods. These mechanics are specifically designed to create compulsive engagement and spending behaviours.

Sports Betting Apps

Online sports betting is legal for adults in many countries and is heavily marketed through sports broadcasts, sponsorships, and social media. Many betting apps and websites offer free bets, sign-up bonuses, and easy entry points that are particularly appealing to young people with an interest in sport. Age verification systems are often inadequate, and many teenagers access betting platforms with minimal barrier.

The normalisation of sports betting through advertising and its association with sporting culture means that some young people develop a casual, normalised relationship with gambling that they do not perceive as risky. Research on young adult problem gambling identifies sports betting as a significant gateway.

Social Casino Games

Social casino games, which replicate the mechanics of slot machines, poker, and other casino games but use virtual rather than real currency, are available on many platforms and are often presented as harmless entertainment. However, research suggests that social casino game use is associated with later transition to real money gambling, and that young people who play them extensively may develop gambling-associated thought patterns without realising it.

Signs of Problematic Gambling Behaviour in Young People

Signs that a teenager may be developing problematic gambling behaviour include:

• Spending increasing amounts of time or money on gambling or gambling-like activities
• Preoccupation with gambling, talking about it frequently, or planning next gambling sessions
• Lying about gambling behaviour or hiding it from parents
• Continuing to gamble despite losses, trying to win back losses by gambling more
• Borrowing money, selling possessions, or accessing family finances to fund gambling
• Distress, irritability, or withdrawal when not able to gamble
• Declining school performance or withdrawal from other activities in favour of gambling

How to Talk to Your Child

Frame the conversation around how gambling works rather than as prohibition alone. Young people who understand the underlying mechanics, that gambling is designed to make money for the operator and that the odds are always against the player in the long run, are better equipped to make informed decisions than those who have only been told that gambling is bad.

Be specific about the specific risks of online gambling for young people: the ease of access, the sophisticated marketing, and the structural features designed to maximise spending. Acknowledge that some forms of gambling, such as buying a lottery ticket with grandparents, exist on a spectrum and that context and frequency matter.

If you have concerns about your child's gambling behaviour, speak to your family doctor, who can advise on whether specialist gambling support services are appropriate. Problem gambling in young people is treatable, and early intervention significantly improves outcomes.