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The Legal Risks of Online Sports Gambling for Young Adults

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A student heading to college can be both an exciting and scary occasion. As a young adult, you’re hopeful to create friendships and try new things. As a parent, you hope all the time they’ve spent with you has instilled good practices on their part as they begin to make their own decisions. But what happens if they are influenced into online sports gambling? The phenomenon has been on the rise amongst college students since a 2018 Supreme Court ruling that allowed states to legalize it.

The Dangers of Online Sports Betting

Online sports betting is an emerging risk to adults, but especially college-age young adults, with more than 6% already claiming to be addicted. According to The 74, this is increasing in popularity due to the similarity to video games and the fact that they are seen as an “escape” from the pressure in their lives.

College students are particularly vulnerable because of the incentives that are being used on betting platforms. Many offer free bets when you sign up, making students believe they won’t need to use their money they may now have full control of since they’re not under their parents’ control. Once on the app, students may find instant gratification in creating bets to win quick money. This can lead to impulsive spending decisions which could add up to a greater financial risk in the end.

The Legal Trouble Behind It

While sports betting in some form is legal in 38 states, each has their fine print. Many young adults are naive about the gambling laws in their state, and potential legal risk associated.

In the United States the legal age for gambling ranges from 18 to 21, only 6 states allow legalized gambling at 18 years old. Underage sports betting comes with consequences that can vary state by state. In many states the result could be a criminal charge and/or fines of $500 to $1,000.

Warning Signs to Watch for and How to Help

If you suspect a friend or loved one might be struggling with online gambling, there are several warning signs to look out for.

  • They might constantly think about gambling activities and talk about it frequently, neglect their responsibilities, and withdraw from their social life to gamble.
  • Additionally, they might experience financial, legal or work problems as a result of gambling, and become defensive when asked about their gambling activities.
  • Other signs include seeking bigger gambling risks to feel the same excitement, skipping showers or meals due to gambling binges, and experiencing mood swings, anxiety, and depression.

If you notice any of these signs, it might be a good idea to have a conversation with them about the risks involved and offer support or resources to help them better understand how online sports betting could affect their personal, financial and legal health in the short and long term.

How ARAG Can Help

As an ARAG member, your plan may cover attorney fees for covered family members if you or a dependent becomes involved in underage or illegal sports betting. Log in to your online account to see what and who is covered in your plan or contact Customer Care.

*Plan coverage may vary, be limited to a specific number of hours or not available. For matters that aren’t covered, members may be able to receive 25% off network attorney fees. To view your plan-specific coverage details, view your plan coverage at ARAGlegal.com/member/plan-details or contact ARAG Customer Care.  

Limitations and exclusions apply. Depending upon a state’s regulations, ARAG’s legal insurance plan may be considered an insurance product or a service product. Insurance products are underwritten by ARAG Insurance Company of Des Moines, Iowa. Service products are provided by ARAG Services, LLC. This material is for illustrative purposes only and is not a contract. For terms, benefits or exclusions, contact us.