From Kids' TV to Betting Apps: The Risks of Online Gambling for Teens
How many of my clients have received a bill from Apple and wondered, what the heck are these charges? Then they find out their child has been racking them up playing games designed to get them to do it.
Many parents don't find out how much their child is spending on games until the bill comes.
I've written before about online gambling as a new risk for teens. Since then, in-game spending and prediction markets have changed how kids get started and how much money is involved.
Designed to Hold Their Attention
In 2022, the New York Times reported that Moonbug Entertainment, the company behind CoComelon, tests episodes on young children in a London studio. Next to the main screen, researchers set up a smaller screen they call the "Distractatron," which plays a loop of ordinary scenes like someone pouring a cup of coffee. Each time a child looks away from the show toward the second screen, the researchers note the exact moment (New York Times). Some child development experts say CoComelon is no worse than other children's content online. Susan Linn, author of Consuming Kids, told TIME that nearly everything on the web is now built to be addictive (TIME).
This spring, NPR reported on research by Natasha Dow Schüll, a cultural anthropologist at New York University. She spent 15 years studying video slot machines, which many scientists consider the most addictive form of gambling. She identified four features that keep people playing: using the machine alone, content with no natural stopping point, speed, and a reward that always seems just out of reach. Around the early 2010s, she began seeing the same features in phone and tablet apps, including social media, games, and video streaming platforms. Schüll told NPR that these products form a relationship with kids that ordinary toys don't. NPR also noted that children who regularly use screens alone in their bedrooms have a higher risk of problematic use (NPR).
Games That Run on Tokens
Many popular games are free to download and make their money inside the game. Players buy virtual currency, such as V-Bucks in Fortnite or Robux in Roblox, and spend it on outfits, upgrades, and chances at rare items. Because the purchases are made in tokens instead of dollars, it is easy for a child to lose track of how much they've spent.
Some games sell loot boxes, which are purchases with a random outcome. The player pays first and finds out afterward what they got, the same way a slot machine works (Spicer et al., 2022). A 2022 systematic review found that 12 of 13 studies reported a link between buying loot boxes and problem gambling (Spicer et al., 2022). A 2025 review of studies on players under 18 found that teens who engage with loot boxes are at higher risk of problem gambling, and that boys engage more. The authors suggested loot boxes may act as a gateway to gambling and called for more research (Trends in Psychiatry and Psychotherapy, 2025).
Federal regulators have taken action against game companies over these practices. In 2022, Epic Games, the maker of Fortnite, agreed to pay $245 million to settle FTC allegations that it used design tricks to push players into unwanted purchases and let children rack up charges without any parental involvement (FTC). In January 2025, the publisher of Genshin Impact agreed to pay $20 million. The FTC said the game misled children and teens about what loot boxes cost and how likely they were to win. As part of the settlement, the company must block players under 16 from buying loot boxes without a parent's consent (Claims Journal).
The Stakes Get Bigger
By high school, many teens have moved from game tokens to betting with money. Common Sense Media reports that nearly half of 17-year-olds are gambling (Common Sense Media). The National Council on Problem Gambling found that 10.3% of young people had gambled online despite age restrictions (ConnectSafely).
Prediction markets are the newest route in. Sites like Kalshi and Polymarket let users bet on the outcome of sports games, elections, and celebrity news. They are regulated by the federal Commodity Futures Trading Commission, so state age limits for gambling don't apply to them (AP via Anchorage Daily News). Most state-regulated casinos and sportsbooks require customers to be 21, while prediction markets accept anyone 18 or older. A CNN analysis found that users ages 18 to 21 traded about $5.4 billion on Kalshi this year, including about $3.9 billion on sports (Public Gaming). The NFL, NBA, NCAA, and other leagues have asked federal regulators to raise the minimum age to 21 (KEYT, reporting CNN). New York's attorney general has sued Kalshi, calling its markets illegal gambling (ConsumerAffairs).
I have one 22-year-old client who made six figures in one day and lost the same amount the same day. When his parents found out, they shut down his access to family funds and sought help. He had a stable job, but he was isolating at home, and his mental health was deteriorating. He needed help crawling out.
These markets have expanded beyond sports into entertainment. This summer, millions of dollars were wagered on details of Taylor Swift's rumored wedding. Teens often form one-sided emotional bonds with celebrities, which can make betting on a favorite star feel like being a fan rather than gambling (ConnectSafely). Betting platforms also market heavily through memes and humor on social media, a strategy one marketing founder described as deliberately aimed at young people (AP via Anchorage Daily News).
Teens who gamble online are also targets for scams. Scammers use AI to create fake videos of athletes and celebrities promoting betting sites, and some teens pay upfront for betting "tips" (Common Sense Media).
Who Is Most at Risk, and Why
Adolescents are more prone to impulsive decisions and less equipped to weigh long-term risks, which makes them more vulnerable to gambling losses (Common Sense Media). A review of research on youth problem gambling found that boys who are exposed to gambling at a younger age are at greater risk. So are teens whose family members or friends gamble, and teens who are impulsive or drawn to high-sensation activities. The same review found that anxiety, depression, ADHD, poor academic performance, and substance use are strong predictors of problem gambling (Gupta and Derevensky review). I wrote about why neurodivergent teens are especially vulnerable in ADHD, Autism, and Addiction: How Screens, Gaming, and THC Hook Neurodivergent Teens.
The National Council on Problem Gambling reports that young people are more likely to meet the criteria for problem gambling if they play games with gambling-like features, such as loot boxes and social casino games (NCPG Youth Gambling Factsheet, 2025). Exposure matters too. Boys who see gambling content online spend more money when they gamble (Common Sense Media).
Signs to Watch For
Unexplained charges from Apple, Google, or a game company
Gift card purchases, or requests for gift cards
Venmo, Cash App, or PayPal activity you don't recognize
Moods that rise and fall with game results or sports outcomes
Borrowing money, selling belongings, or secrecy about spending
Betting apps on a phone, or talk of "picks," "parlays," or "odds"
What Parents Can Do
If you are the parent of an infant, don't prop them in front of a screen in a restaurant to keep them quiet. Your baby's brain is plastic, and using media as a distractor too frequently teaches them to rely on a screen to calm down. The American Academy of Pediatrics recommends that children under 18 months avoid screens except for video chatting (Michigan State University Extension). In a study of children ages 3 to 5, frequently using phones and tablets to calm kids down was linked to more emotional reactivity over time, especially in boys. The lead researcher explained that a device distracts a child from a feeling instead of teaching them how to manage it (Michigan Medicine).
Turn on purchase controls. On Apple devices, Ask to Buy requires a child to get a parent's approval before buying an app or making an in-app purchase. In the United States, parents can turn it on for any family member under 18, and it is on by default for children under 13 (Apple Support). You can also require a password for every purchase. If your child has already run up charges, you can request a refund through Apple's Report a Problem page, though refunds aren't guaranteed.
Review purchase histories, bank statements, and payment apps regularly. Keep devices out of bedrooms at night, since using screens alone is one of the features that makes them hard to put down.
Talk with your kids about how free games make money, and use the plain words: a loot box is a gamble, and a prediction market is the same as betting. Ask what they see on social media about betting, and who they know who bets.
For Professionals
Ask about gaming and gambling together. Questions about in-game spending, loot boxes, sports betting apps, and prediction markets will surface more than a general question about gambling. Teens with ADHD, anxiety, depression, or substance use deserve particular attention, since those conditions predict problem gambling.
If your adolescent or young adult child is struggling with this, reach out. We can provide you with resources to support you. You can reach me at jennifer@teamcrossbridge.com.
Jennifer Benson, MSW, is a partner at Crossbridge Consulting. She trained at the Columbia School of Social Work, in the SPACE program at the Yale Child Study Center, and as a parent coach. Talk with Jennifer here.
