Online gambling problems in teens and college students

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Why teens and college students gamble

Where there’s unregulated gambling, there's cheating by casinos and dealers

Gambling addiction among youth

Talking to teens and college students about gambling

If you do choose to gamble online, consider this

More resources on online gambling 

More than a million young people gamble online each month despite the fact that in the U.S. placing bets over the Internet is illegal and all gambling is illegal for minors. Heavy gambling is particularly frequent in young men. Research conducted in the fall of 2006 by the Annenberg Public Policy Center at the University of Pennsylvania found that the number of men ages 14 through 17 gambling at least once a month was 357,000, and ages 18 through 22 was 850,000 (about 5.8 percent of this last age group). Particularly troubling is that in the 18 to 22 age range the numbers more than doubled over the previous year. Correspondingly, only about one percent of women ages 18 through 22 report gambling online. Furthermore, according to research by International Centre for Youth Gambling Problems and High-Risk Behaviors at McGill University, gambling is the most popular high-risk activity among teenagers compared to alcohol, drug, and cigarette use. In fact, there is ample research demonstrating that 80 percent of teenagers gamble.

Why teens and college students gamble

Today's teens are living in a society where legalized gambling is not only socially acceptable, but is widely promoted and highly visible. 48 states now allow some form of gambling. Casinos advertise heavily on TV, radio, and billboards. Poker tournaments complete with expert commentary, interesting filming angles, and million dollar prizes have become reality TV on cable and broadband networks. Web sites like A Guide to Online Sports Gambling and Sportsbook.com make online gambling appear mainstream and legal.

Another common access point for online gambling was the popular virtual world, Second Life. After heavy pressure from the U.S. government, Second Life finally banned online gambling in July, 2007, when it stopped real cash payouts to comply with real-world laws. Not surprisingly, this move has created quite a backlash by those profiting from gambling in the highly popular and financially lucrative Second Life casinos.

Online gambling worldwide is big business. Internet gambling revenues topped US$15 billion in 2006 and are projected to grow to nearly US$25 billion by 2010 according to Christiansen Capital Advisors research.

Source: Christiansen Capital Advisors, LLC

Given the prevalence, visibility, and glamour now afforded gambling, it’s not surprising that many teens are drawn to it. At a time when youth are struggling and searching for their identity, gambling can appeal both because of the instant gratification, thrill, and hope of fast money according to research from McGill University. In addition to boosting to self-image, adolescents gamble because of peer pressure and to relieve boredom and feelings of depression. Youth may continue to gamble in the hopes of winning big, stealing or selling possessions to pay off debts.

This is particularly the case on college campuses where students play poker in dorm rooms and local bars. Collegians are "developmentally prone for this type of gambling," said Laurajane Fitzsimons, assistant director of counseling at the University of Massachusetts at Dartmouth. There is a culture of gambling that is well established on college campuses according to Fitzsimons who has pioneered efforts on her campus to educate students and parents about the risks of online gambling. "The college sector continues to be one of the fastest-growing segments of online poker," according to Haden Ware, managing partner of World Poker Exchange. Last year, almost ten percent of the 17 million college students in the U.S. gambled on the Internet, according to the Annenberg survey.

Yet, in spite of this dramatic rise, colleges have largely failed to address the issue. One Harvard study found that only 22 percent of colleges even had a gambling policy. Some colleges even implicitly approve of gambling by allowing students organizations to organize poker nights as fundraisers which are legal as long as the money raised goes to charity.

Where there’s unregulated gambling, there's cheating by casinos and dealers

While not all online gambling sites are fraudulent, new technologies are leveraged to expand on old vices. Reliability and trust are always problematic when it comes to gambling, where both disreputable organizers and other players may be cheating. And since placing bets online is illegal in the U.S., no U.S. government agency is reviewing the legitimacy or honesty of gambling sites.

In virtual poker for example, cards can be dealt in any order the online gambling site chooses. You’ll never see sleight of hand from a virtual dealer. You will never see how transactions are handled or know if the roulette wheel is rigged. And on top of all the time-worn methods of gambling fraud, new opportunities arise due to sophisticated computer hackers and digital thieves who can rig a variety of scams, siphon money to invisible accounts, or use other forms of technical crime. In fact, as early as 2002, the British newspaper, The Register, reported that Mastercard's European partner, Europay, calculated that 20 percent of online fraud was related to gambling, and that gambling had become the top Internet-related card fraud problem in Europe.

Think about it. What recourse is there for someone gambling illegally when the site and its money, disappears? What incentive does someone running an illegal online gambling site have to play fair? Online casino owners don’t even have to leave a building and equipment behind or try to sneak out of town; the entire casino is an illusion on your screen and the owner was never in town.

Gambling addiction among youth

Research from the Gambling Disorders Clinic at Columbia University Medical Center indicates that teenagers make up half of the sixteen million people in the United States with gambling addictions.

The Clinic’s research also indicates that youth who begin gambling at an early age are at increased risk of addiction, and that youth with gambling addictions are fueled in part by a distorted perception among those addicted that they have a greater than 50 percent chance of winning. Parents who gamble, give lottery tickets to youth, or show approval of gambling are often a key contributing factor in teens with problem gambling.

Between four and six percent of teenagers may be considered probable pathological gamblers with an additional ten to 15 percent who may be considered at-risk of developing a gambling problem. A large scale study of adolescents in Alberta, Canada, found that the average problem gambler started gambling at age ten.

Teen problem gamblers have higher rates of: 

• School problems such as lower grades, truancy, and behavioral issues

• Problems with family and peers such as withdrawal and behavioral issues

• Financial problems

• Crime (theft, robbery, embezzlement) and hence legal troubles

• Depression including suicidal thoughts and attempts

• Risk for other addictions, including alcohol and substance abuse

To help identify when gambling has become an addiction with your teen, here’s a self-test he or she can take. (The questions are compiled from Columbia’s Gambling Disorders Clinic and material developed by the state of Connecticut Council on Problem Gambling, but you can find many comparable questionnaires online.)

• Is gambling the most exciting activity in your life?

• Do you have an intense interest in gambling and conversations about gambling? Are you preoccupied with thoughts of gambling?

• Are you spending an unusual amount of time on the Internet?

• Do you miss school, activities, or other events due to gambling?

• Have your grades declined?

• Do you lie to your friends or family about your gambling?

• Do you ask for or borrow money to gamble?

• Have you sold personal belongings to get money to gamble?

• Have you stolen from your family, friends, or employer to gamble or to pay back gambling debts?

• After losing, do you try to win your money back by gambling?

• Have you tried to stop gambling but can't?

• Are you feeling unhappy or depressed?

For help with a gambling addiction, you or your teen can visit Gamblers Anonymous for a list of local meetings or search online for resources in your area using terms like gambling hotline, problem gambling, or compulsive gambling. Nearly every state has confidential help available.

Talking to teens and college students about gambling

Protecting minors from online gambling is difficult with ever-present access to computers and cell phones. (Several online casinos and card rooms offer mobile options.) The anonymity of online interactions compounds the problem while identity verification checks that placed barriers to gambling in brick-and-mortar casinos have, for all practical purposes, disappeared. (See how easy it is to gamble online.) Given this ease of access and the allure of gambling, this is a critical topic for discussion with teens and college-age students.

Tip Before you embark on your own discussion following the points below, check out the very well-written brochure, What are the odds your teen is gambling? Produced by the Oregon Lottery and Oregon Department of Human Services, it outlines how to spot risks and discuss online gambling issues with teens.

• Before starting a conversation with your teen, consider your own attitude towards gambling and any form of gambling you may do. Youth whose parents gamble are far more likely to gamble than other youth, and you’ll need to be prepared for comments about your own actions and example.

• Are you sending mixed messages? Are you hosting poker games for your teen’s friends? Buying them lottery tickets? Teaching them how to play roulette or other games? Early introduction and comfort with gambling increases the risk of gambling addiction in teens.

• Keep conversations constructive.

  • Start by asking about the types of games your teens and their friends are playing.

  • Discuss the pros and cons of various types of online games and outline which ones you feel are appropriate and which aren’t.

• Discuss gambling in specifics.

  • Underage gambling is always illegal and placing online bets is illegal in this country at any age. While the laws prohibiting online gambling are somewhat confusing, the Unlawful Internet Gambling Enforcement Act signed into law in October 2006 specifically prohibits Americans from using electronic funds transfers, credit cards, and checks in placing bets at gambling sites anywhere in the world. The Wire Act specifically restricted the operation of a sports betting Web site. There are arguments that this act does not apply to online casino games or poker, but you would be well advised to become fully informed before proceeding on that assumption.

  • Gambling is NOT a way to earn money. The odds guarantee that most players will lose. Over time, the house always wins, even in honest gambling. Online gambling is big business that generates a lot of money and that money comes from "unlucky" gamblers.

  • Online gambling is an unregulated and illegal big business where there is little or no incentive for the companies to play fair.

  • Gambling brings unintended consequences such as financial loss which creates enormous stress and could motivate crimes to repay the debt.

  • Using credit or debits cards to gamble is always a poor choice. (And if your teen uses your credit to gamble, they can ruin your financial security and credit rating as well as their own.)

  • Gambling can be addictive, particularly if there is a family history of any kind of addiction.

• You may want to ask your teen to research online gambling on their own. There is plenty of material—More resources on online gambling provides a good starting point. This helps them learn about the issues from other sources which may be helpful if they are feeling antagonistic to your authority.

• Set and enforce your rules. Only you can set family boundaries for gambling, whether online or offline. You may feel that the discussion and general oversight you maintain around your teens online use is enough to ensure that your rules are respected. If you aren’t sure this is enough, consider some family safety tools (often called parental control software) to help monitor or block access to gambling sites. You may also choose to review your teen’s phone bills with them periodically for signs of gambling charges. (Note: it’s important to either let teens know up front you will be looking, or go through these together so there is no sense of spying.)

If you do choose to gamble online, consider this

If you defy the law – something I do not endorse – at least reduce your odds of being scammed.

• Check out the online casino to be sure that it is legitimate. Use brand name casinos or ones that have been recommended by people you trust. Also, many "free" Internet gaming sites are vectors for malicious software. My blog, How do you know if online programs and services are safe?, might help you decide whether or not a site is trustworthy.

• Understand the fine print. If the site’s Terms and Conditions are not readily discoverable, don’t use the site. Legitimate companies will make these very clear.

• Review the site’s payment options. Reputable online gambling sites should have several ways of paying such as credit card transactions, wire transfers, and services like Paypal. Also review the site’s withdrawal of funds options. Web sites that make it hard to withdraw your money should be avoided entirely.

• Be cautious about accepting any offers like Welcome Bonuses that match your initial stake as they may motivate you to invest more than you had planned.

• Watch for signs of gambling addiction in your behavior.

More resources on online gambling

In addition to the links provided within this article, here are some other sites that may be of use.

• Caught in the gambling Web. CNN article about the downward spiral from casual gambling to addiction.

• Betting on a College Education. This article explores college poker tournaments that offer scholarships as prizes.

• Even Non-Betting Youths See Nothing Wrong With Gambling. Explores the high degree of acceptance gambling has among youth.

• Online Gambling Resources. StudentAffairs.com provides these references to Internet gambling research and legislative committee action.

• March Madness: Better Without Bets This article by Citizenlink.org focuses on the issues around college sports gambling.