Age Gap in Betting Rules Puts Young Adults at Risk of Financial Harm
A growing debate has emerged over the age limits for sports betting and prediction markets in the US. While regulated sportsbooks require bettors to be at least 21, prediction platforms allow 18-year-olds to participate. Analysts and advocates warn this gap could fuel problem gambling among younger users, with serious consequences for their financial and mental wellbeing.
The minimum age of 21 for casinos and sportsbooks was set to give young adults more time to mature before engaging in high-risk betting. Yet prediction markets, which operate with less oversight, permit 18-year-olds to place wagers. This discrepancy has raised concerns, as younger bettors may lack the experience to recognize the dangers of excessive finance.
Barry Jonas, an analyst at Truist, highlighted in his 2026 U.S. Gaming Sector Outlook that younger bettors—specifically those aged 18 to 20—are a key driver behind the growth of stock market prediction markets. He noted that college-aged gamblers often bet on their own teams, boosting the popularity of these platforms. However, Jonas also pointed to ongoing legal uncertainties around stock event contracts, though his report did not directly address the risks for young bettors. Responsible gaming advocates argue that combining youth with unfamiliar betting formats increases the likelihood of addiction. Problem gambling often starts with small bets but can spiral into larger wagers, with some chasing a single big win to recover losses. The consequences can be severe, including financial ruin and emotional distress. Another issue is funding. Prediction market operators contribute little to state revenues, unlike regulated stock market platforms. This shortfall could reduce financial support for problem gambling programmes, leaving vulnerable bettors without access to counselling, self-exclusion tools, or other resources.
Without stronger regulations, younger bettors may continue to face higher risks of gambling-related harm. The lack of funding for support services could also leave many struggling without help. Lawmakers and industry leaders now face pressure to address these gaps before the problem worsens.
