Underage Online Gambling Addiction Lawsuit

No-obligation consultation

If your child has developed a gambling addiction through online platforms or mobile apps, you may be entitled to compensation for the devastating harm they have suffered.

The Online Gambling Epidemic Among Youth

What started as “fantasy sports” has become a gateway to devastating gambling addiction for an entire generation of young sports fans.

Since the Supreme Court’s 2018 decision empowering states to legalize sports betting, gambling companies have aggressively marketed to sports fans of all ages. Despite laws prohibiting underage gambling, these companies use sophisticated tactics to ensnare teenagers and underage adults on sports betting, often starting before they turn 18 and continuing as they become legal adults with established gambling problems.

The Alarming Reality of Youth Sports Gambling

Between 60% to 80% of high schoolers say they have gambled for money in the past year, and up to 6% acknowledge being addicted to gambling;

79% of young adults aged 16-25 have gambled before turning 21, according to survey data conducted by the Council on Compulsive Gambling of New Jersey in collaboration with Seton Hall University;

A May 12 2025 study on “Frequent and Problem Gambling in Public School Students”, published in JAMA Pediatrics, found that, among a representative sample of 13-17 year old public school students in Minnesota (where sports gambling was measured at the time the study was conducted) 75% of “Problem Gamblers” and 25% of “Frequent Gamblers” in that age cohort gamble online;

How Some Online Gambling Companies Target Young People

Predatory Marketing Tactics

Digital sports betting operators have nearly doubled their advertising spending from a reported $1 billion in 2021 to nearly $2 billion in 2023. Certain sports gambling companies employ targeted strategies specifically designed to capture young sports fans through:

Social Media Advertising

Young people recalled encountering sports betting advertisements on social media the most (10–14 ads per week);

Celebrity and Athlete Endorsements

Using popular sports and entertainment figures to normalize gambling for young fans;

Fantasy Sports Gateway

Using popular sports and entertainment figures to normalize gambling for young fans;

Mobile App Design

Creating apps that look like video games, disguising the serious nature of gambling;

Parlay Bet Marketing

Promoting high-risk parlay bets that combine multiple wagers with exponentially lower odds of winning, marketed as “easy money” despite their mathematically poor value.

Exploiting Sports Culture

Aggressive Promotions

Major U.S. gambling companies like FanDuel, DraftKings, and BetMGM use TikTok, Instagram, and other youth-popular platforms offer promotions—like free bets, odds boosts, and “bet with friends” features—wrapped in humor, memes, and influencer-style content. A 2024 University of Bristol study found that over 75% of posts lacked responsible gambling warnings, and nearly half used informal, youth-oriented language. Complementing these findings, a UK study during the 2022 FIFA World Cup reported that 92% of 11–17-year-olds saw gambling ads, and 63% could name at least one gambling brand unprompted. These campaigns make gambling seem familiar and appealing—well before young people are old enough to legally bet;

Live Betting During Games

During live sports games, teenage sports fans are now constantly exposed to gambling ads. Sports broadcasts now average nearly 3 betting messages per minute, with flashy live odds, in-game promos, and “bet now” overlays woven directly into the game itself. These messages are shown so often, and in such casual ways, that gambling starts to feel like a normal, even expected, part of watching sports, including for those who are not old enough to legally gamble;

Micro-Betting Options

Allowing bets on individual plays, at-bats, or possessions to maximize betting frequency. Platforms now allow users to place bets on individual moments within a game—like the outcome of the next pitch, play, or possession. This dramatically increases the number of betting opportunities in a single event, turning every second into a chance to wager. Because these bets are fast, unpredictable, and often based on instinct rather than strategy, they significantly reduce a bettor’s chances of long-term success. For young or impulsive users, this style of rapid-fire betting can be especially risky and addictive;

Social Features

Many gaming apps now include social elements like public leaderboards, group chats, “follow your friends’ bets” features, and influencer-endorsed picks. These tools create a sense of community where constant discussion about betting is normalized. For young people—especially those immersed in online culture—this makes betting feel like a social activity rather than a financial risk, lowering the perceived seriousness of gambling and encouraging peer-driven behavior;

The Devastating Impact of Youth
Gambling Addiction

The Devastating Impact of Youth Gambling Addiction

Mental Health Crisis

Young people addicted to sports gambling report experiencing:

Severe anxiety and depression, especially after losses
Suicidal ideation and attempts due to overwhelming debt
Academic failure and dropout from college or high school
Loss of interest in sports they once loved
Social isolation from friends and family
Sleep disorders and inability to focus
Rage and violent outbursts when gambling is restricted

Financial Destruction

Families report devastating financial consequences:

Student loan money diverted to gambling instead of education
Credit cards maxed out on sports betting apps
College savings accounts emptied by gambling addicted children
Identity theft by children desperate to continue betting
Bankruptcy for families trying to cover gambling debts
Lost educational opportunities due to financial devastation

Academic and Career Impact

Failing grades due to time spent gambling instead of studying
Loss of scholarships and educational opportunities
Inability to focus on career development
Criminal behavior to fund continued gambling
Permanent academic suspension for gambling-related violations

Legal Action Against Digital Gambling Companies

Current Investigations and Litigation

The legal landscape is rapidly evolving as the true scope of underage online sports gambling becomes clear:

Federal Investigations

NCAA President Charlie Baker reported that the NCAA had found 175 infractions of its sports-betting policy since 2018, with 17 ongoing investigations;

State Attorney General Actions and Investigations

Multiple states are investigating gambling operations and marketing to minors, including Pennsylvania, California, Massachusetts, and Indiana;

Emerging Litigation

The City of Baltimore recently filed a lawsuit against DraftKings and FanDuel claiming unfair, abusive, or deceptive trade practices, asserting that the online sports betting companies are “hoping to hook [on gambling], and then ultimately exploit, as many users as possible.”

Legal Claims in Underage Online Gambling Cases

Violations of Underage Gambling Laws

Online sports gambling platforms are prohibited from allowing users under 21 to place bets in most U.S. jurisdictions. However, real-world data shows that enforcement is falling short.

Widespread youth gambling activity: Between 60-80% of high school students report having gambled for money in the past year, and up to 6% meet the criteria for gambling addiction, indicating widespread exposure despite age restrictions.

Inadequate age verification: Many online gambling platforms fail to deploy robust “Know Your Customer” (KYC) protocols required to verify users’ ages and identities. KYC standards in regulated industries typically require multi-layered identity proofing, such as uploading a government-issued ID, verifying a mobile number, cross-referencing databases, and in some cases, using biometric scans (e.g., facial recognition). Many popular online sports gambling apps and websites fail to meet this standard and, instead, accept self-reported age or allow minimal checks—like credit card entry—as sufficient, making it easy for minors to bypass restrictions.

Unlawful or Deceptive Data Collection from Minors

Some online gambling companies and fantasy sports platforms increasingly collect personal data from users under 18—often through free-to-play games or fantasy apps—and later use that data for direct gambling marketing once the user turns 18. This raises serious legal and regulatory concerns.

Targeting former minors with retained data: Some companies build long-term behavioral profiles of underage users, then target them with gambling ads the moment they reach legal age. Such practices can violate state privacy laws that require opt-in consent for data use from users aged 13–16;

Constructive knowledge standard: Platforms that knew or should have known they were collecting data from minors—even if users self-declared a false age—may still be liable for violations, particularly if the platforms failed to use meaningful age verification;

Retention and profiling risks: Retaining youth data to build predictive gambling profiles may violate emerging “data minimization” and “age-appropriate design” standards, such as those established by the California Age-Appropriate Design Code Act.

Consumer Protection Violations

Online sports betting platforms are not just targeting adults who understand the risks—they are also creating environments where young users are especially vulnerable to misleading promotions and unsafe features. Here are some of the most common consumer protection failures that put families at risk:

Misleading Ads and False Promises: A number of gambling apps advertise "risk-free bets," "boosted odds," and "easy wins"—but the reality is far different.

Letting Users Bet Money They Do Not Have: Some platforms allow people to place bets using money they have not actually deposited yet through “bonus credits,” deferred payments, or even credit cards linked to the app. This means users—including underage adults—can accumulate debt or overdraft their accounts without realizing it until it is too late. Though not technically a loan, these practices function like one: encouraging riskier bets by removing the natural pause that comes with spending real cash.

Hiding or Ignoring Responsible Gambling Tools: While betting companies are quick to promote flashy offers, they often fail to promote or enforce tools designed to protect users.

Low awareness of safety tools: A 2024 peer-reviewed study published in the Journal of Gambling Studies found that less than half (46.3%) of young people recalled seeing any advertising related to responsible gambling tools despite near-universal exposure to betting ads themselves.

Limited friction for high-risk users: Features like time limits, spending caps, or self-exclusion are often buried in settings or hard to activate, and rarely come up unless the user seeks them out.

Consumer Protection Violations

Online sports betting platforms are not just targeting users—they are contributing to a growing public health crisis, especially among young people. Through design choices, lax safeguards, and aggressive marketing, these companies are fueling addiction and putting vulnerable groups at risk.

Creating a public health crisis: Gambling addiction rates are rising fastest among young people, who are more likely to take risks and less likely to recognize harmful behavior. In one national study, 2.1% of youth ages 14–21 met the criteria for problem gambling, and 6.5% were classified as at-risk or problem gamblers using a validated clinical tool (SOGS-RA)

Targeting vulnerable populations: People ages 18–24 make up just 22.5% of the general population, but account for 34.3% of those with problem gambling behaviors related to sports betting. This shows that gambling companies are not just reaching young people—they are affecting them at higher rates than any other group.

Failing to Keep Minors Out: Despite clear evidence that teens regularly access gambling content, platforms continue to use weak or ineffective safeguards.

Many apps allow users to enter a birthdate without verifying it—making it easy for minors to create accounts.

Some platforms collect behavioral data through free-to-play or fantasy games, then use that information to market real-money gambling once the user turns 18.

In short, companies know that minors are using their products—and they have failed to take meaningful steps to stop it.

Warning Signs of Youth Gambling Addiction

Behavioral Red Flags

Your child may have a sports gambling problem if they:

Check betting apps constantly during and after games
Become extremely emotional about sports outcomes beyond normal fandom
Lose interest in sports they can’t bet on
Spend excessive time researching “sure thing” bets and betting strategies
Become secretive about phone and computer use
Show dramatic mood swings related to sports results
Continue betting despite significant losses
Lie about their gambling activities

Financial Warning Signs

Unexplained money requests around game days
Multiple apps with gambling-related names on their phone
Bank account irregularities with frequent small transactions
Credit card charges to gambling companies
Selling personal items for unexplained reasons
Taking advances on future earnings or allowances

Academic and Social Changes

Declining grades especially during sports seasons
Skipping classes to watch games they’ve bet on
Loss of interest in non-gambling activities
Conflicts with friends over borrowed money
Isolation from family activities

The Science Behind Youth Gambling Vulnerability

Why Young People Are at Higher Risk

According to a University of Minnesota study, youth are at four times the risk of adults for developing pathological (compulsive) gambling: 6% of the teens who have tried gambling develop the most severe form of gambling addiction (pathological gambling), compared to about 1.5% of adults.

Problem gambling impacts about 4-8% of youths, compared to just 1% of adults. According to the Massachusetts Youth & Risk Toolkit, “children introduced to seemingly harmless betting by age 12 are four times more likely to engage in problem gambling later in life.”

Developmental Factors

Brain Development

A teen’s brain, with an underdeveloped logic center, is not wired yet to weigh risk and make healthy choices ;

Early Exposure

Gambling disorders can begin in children as young as 10 years old;

Potential Recoveries for Families

Economic Damages

Depending on the state in which you are located, full financial recovery may include:

Complete reimbursement for all gambling losses
Interest and penalties charged by credit card companies
Cost of addiction treatment and ongoing therapy
Lost educational opportunities and scholarship money
Future earning capacity impacted by addiction
Family therapy costs to repair relationships

Non-Economic Damages

Punitive Damages

Courts may permit additional damage claims to punish companies for:

The Unique Dangers of Sports
Gambling for Young People

The Unique Dangers of Sports Gambling for Young People

Why Sports Betting is Particularly Addictive for Youth

Emotional Investment

Young people’s passion for sports makes them particularly vulnerable to betting addiction;

Social Acceptance

Marketing research demonstrates how advertisers seek to align sports betting with the culturally valued aspects of being a sports fan—including friendship, support for your team, fan loyalty, thrill, winning, and power;

Illusion of Knowledge

Young sports fans believe their expertise gives them an edge in betting;

Constant Opportunitie

With year-round sports, there are always new wagering opportunities;

Mobile Accessibility

The majority of sports betting takes place on mobile phones, mostly on betting apps. Unlike other heavily regulated “vice” products and services (e.g. alcohol, tobacco, vaping), which require purchase at a physical store, here, the store lives in children’s pockets.

The Fantasy Sports Gateway

A significant portion (43.3%) of young adults were first exposed to gambling between the ages of 11-16. Many young people first encounter gambling through “free” fantasy sports leagues that:

Regulatory Failures and Industry Exploitation

Inadequate Federal Oversight

At present, there is no dedicated set of federal regulations specifically regulating gambling online. States regulate–unevenly–how sportsbooks and online gambling companies can operate but give companies wide latitude over what they can say in advertisements, which is a break from the constraints on other industries where there is a risk of addiction, such as tobacco. There is no nationwide standard for advertising disclosures, age verification, or addiction warnings.

Industry Self-Regulation Failures

The American Gaming Association (AGA) has established the Responsible Marketing Code for Sports wagering, but these are voluntary standards. However, advertising regulations are often viewed as a complete failure and are riddled with loopholes that allow sportsbooks to groom the next generation of gamblers.

Campus Infiltration

Industries like tobacco, alcohol, and pharmaceuticals are subject to strict federal regulations around marketing, labeling, and access due to addiction risks. Gambling, by contrast, enjoys far more leniency in its advertising, especially online and on social media—even though it also carries high addiction potential.

Why Choose The Schenk Law Firm
for Your Sports Gambling Case

Why Choose The Schenk Law Firm for Your Sports Gambling Case

When it comes to holding gambling companies accountable for targeting children and teens, experience matters. At Schenk Law Firm LLP, we bring a unique combination of industry knowledge, legal firepower, and a decades-long record of standing up for vulnerable communities.

We Specialize in Online Addiction Litigation

Our legal team does not just understand the law—we understand the sports betting ecosystem and how the players within it are ensnarling a new generation of users:

Deep knowledge of how sportsbooks operate and market to young audiences

Understanding of the technology platforms (like TikTok, Instagram, and in-game apps) used to reach underage users

Familiarity with the psychology of gambling addiction in adolescents

Ability to quantify the emotional, psychological, and financial harm caused by early gambling exposure

Proven Results in Mass Tort Cases Involving Addiction & Predatory Marketing to Minors

Powerful industries accountable:

Played a lead role in helping to recover billions of dollars from Big Tobacco in the 1990s for deceptive marketing to youth

A successful track record against Fortune 500 corporations, including industries with vast legal resources;

Recognized among the nation’s top consumer protection mass tort attorneys.

When your family has been harmed by the deceptive and dangerous practices of the gambling industry, you need a firm that’s seen this playbook before—and knows how to fight back.

No Financial Risk to Your Family

At The Schenk Law Firm LLP, we believe that every family deserves justice—regardless of their financial situation. That’s why we handle youth gambling cases just like we do all of our major consumer protection cases:

Free, confidential case evaluation with one of our experienced attorneys

No upfront costs to pursue your case. We take on all the upfront financial risks of litigation.

Contingency fee arrangement - you do not pay, and we are not compensated, until we recover for your losses, through either settlement or trial.

Taking Legal Action for Underage Digital Gambling Addiction: What to Expect

Building Your Case

Banking and credit card statements showing gambling transactions.

Screenshots of betting apps and account histories.

Medical records documenting addiction treatment.

Academic records showing impact on school performance.

Communication records with gambling companies and gambling-related texts and social media messages

The Legal Process

1. Free consultation to evaluate your case

2. Investigation into your child’s gambling history

3. Filing lawsuit against responsible companies

4. Discovery phase to uncover company internal documents

5. Settlement negotiations or trial preparation

6. Resolution and compensation for your family

Timeline Considerations

Act quickly – statutes of limitations may apply to your case. The sooner you contact us, the more evidence we can preserve and the stronger your case becomes.

Protecting Other Families Afflicted by Underage Online Gambling Addiction

Your Case Can Create Change

By taking legal action, you’re not just seeking compensation for your family, you’re helping to:

Expose predatory practices used by gambling companies
Force policy changes to protect other young people
Create legal precedents for future cases
Raise public awareness about the youth gambling crisis
Push for stronger regulations to prevent underage gambling

Industry-Wide Impact

Successful litigation can force sports gambling companies to:

Implement real age verification systems that use best-practices already available to them.
Stop marketing to young audiences on social media
End partnerships with universities and youth-oriented organizations
Provide meaningful addiction warnings and spending limits
Fund treatment programs for gambling addiction

Table of Contents

Frequently Asked Questions

Learn more about eligibility to file a lawsuit, the responsibilities of gambling companies, the potential impact on a plaintiff’s future, and the types of compensation that may be available.

My child is now 18/21 - can we still file a lawsuit?

Yes. If the gambling company marketed to or accepted bets from your child while they were underage, you may have a valid claim regardless of their current age.

Can the gambling company claim my child lied about their age?

Companies cannot hide behind inadequate verification systems. They have a responsibility to implement robust age checks, especially when marketing to young demographics.

How much money can we recover?

Every case is different, but damages may include all gambling losses, treatment costs, and additional compensation for emotional harm suffered.

What if my child used fake identification?

Gambling companies have a legal duty to implement effective age verification. If they failed to detect false identification, they may still be liable.

Will this affect my child’s future employment or education?

Most cases can be handled confidentially. Your child’s identity as a plaintiff typically remains private if they are a minor.

If I helped my child access online gambling platforms, would my child still have a case?

Unlikely. Courts generally require that plaintiffs show they were harmed by the misconduct of the company, not their own actions or the actions of a consenting adult. If a parent knowingly helped a minor access gambling sites, it would likely be considered consent or complicity, which could undermine the claim and make it difficult to hold the company legally responsible.

Contact The Schenk Law Firm Today

Don’t Let Online Gambling Companies Escape Accountability

The sports gambling industry makes billions in profits while destroying young lives. Pennsylvania and New Jersey, both of which legalized sports betting in 2018, have each raked in more than $225 million in taxes. These companies have teams of lawyers working to protect their interests. Your family deserves experienced legal representation to fight for justice and compensation.

Every day you wait, more evidence may disappear and legal deadlines may approach. Contact us immediately for a free, confidential consultation about your family’s case.

Get Your Free Case Evaluation

Immediate Steps to Take

If you suspect your child, or someone in your family, is struggling with gambling addiction, seek professional help immediately. You can contact the National Problem Gambling Helpline at 1-800-GAMBLER or visit https://www.1800gambler.net for confidential, 24/7 support.

Licensed to practice in California. Principal office located at 600 West Broadway, Suite 700, San Diego, CA 92101. This website is for informational purposes only and does not constitute legal advice. Prior results do not guarantee future outcomes. Attorney advertising.

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