The Facts About Underage Gambling: Risks and Regulations

16 min read
Aug 8, 2024, 1:16 PM
Author
Sol Fayerman-Hansen
Sol Fayerman-Hansen
Editor-in-Chief
Last Updated: Aug 30, 2024, 1:36 PM

Underage Gambling: Risks and Regulations

An AI generated image of underage gambling

Underage gambling remains a significant concern globally, posing substantial risks to young individuals and leading to severe legal consequences. Underage gambling in casinos and sports betting activities exposes minors to numerous dangers. 

The age minimum for gambling is strictly enforced in most states, with severe penalties for those who facilitate or engage in underage gambling.

Court decisions have repeatedly highlighted the importance of preventing underage gambling, emphasizing the role of stringent laws and regulations. This article delves into the intricacies of underage gambling laws, the risks associated with such activities, the measures in place to prevent and address underage gambling, and tips for fostering a safe and responsible gambling environment.

Sports betting and casino gambling are particularly concerning, as they are highly accessible and appealing to young people. By understanding these elements, stakeholders can better protect young individuals from the dangers of gambling. 

Responsible gambling practices and awareness campaigns are crucial in creating a safer environment for all, ensuring that the minimum age requirements are respected and that young people are shielded from the harmful impacts of gambling.

Understanding Underage Gambling Laws

Underage gambling laws are designed to prevent individuals below a certain age from participating in gambling activities. 

These laws vary significantly across jurisdictions, reflecting regional attitudes and approaches toward gambling and youth protection. Generally, the legal age for gambling depends on the type of gambling activity and the jurisdiction in question:

Online Sportsbook Betting

21 Years Old: Most states have set the legal age for online sportsbook betting at 21. These states include:

  • Arizona
  • Arkansas
  • Colorado
  • Connecticut
  • Delaware
  • Florida
  • Illinois
  • Indiana
  • Iowa
  • Louisiana
  • Maryland
  • Massachusetts
  • Michigan
  • Nevada
  • New Jersey
  • New York
  • North Carolina
  • Ohio
  • Pennsylvania
  • Tennessee
  • Virginia
  • West Virginia

18 Years Old: A few states have lowered the minimum age to 18 for online sportsbook betting:

  • New Hampshire
  • Wyoming
  • Rhode Island
  • Oregon
  • Washington D.C.

Online Casino Betting

The legal age for online casino betting is uniformly set at 21 across all states where it is legal. These states include:

  • Connecticut
  • Delaware
  • Michigan
  • New Jersey
  • Pennsylvania
  • West Virginia

Daily Fantasy Sports Betting

  • 18 Years Old: The majority of states allow daily fantasy sports (DFS) betting at the age of 18.
  • 19 Years Old: Some states set the minimum age for DFS betting at 19:
    • Nebraska
    • Alabama
  • 21 Years Old: In a few states, the legal age for DFS betting is 21:
    • Arizona
    • Iowa
    • Louisiana
    • Massachusetts

Key Aspects of Underage Gambling Laws

Underage gambling laws are stringent and encompass various forms of gambling, including casino gambling, sports betting, and other betting activities. 

The legal gambling age in most states is typically 18 or 21, depending on the specific regulations governing the type of gambling. For example, in New Jersey, the legal gambling age for Atlantic City Casinos is 21.

Engaging in underage gambling can lead to severe consequences, including being charged. An underage gambling charge can result in penalties such as fines, community service, and a Criminal Record. In some cases, repeat offenses may lead to more severe legal ramifications.

Federal and State Laws

Both federal laws and state laws play crucial roles in regulating underage gambling. While federal laws provide a framework, state-specific laws address the nuances and local attitudes toward gambling. For example, some states may allow individuals to gamble at 18, while others may set the legal gambling age at 21.

Federal Laws

Professional and Amateur Sports Protection Act (PASPA) The Professional and Amateur Sports Protection Act (PASPA) of 1992 effectively banned sports betting nationwide until it was overturned by the Supreme Court in 2018. This ruling allowed states to legalize and regulate sports betting independently.

Federal Law Reference: PASPA Overview

Examples from Select State Laws

New Jersey New Jersey has been a pioneer in the legalization and regulation of sports betting post-PASPA. The legal age for sports betting in New Jersey is 21. New Jersey's gambling laws are detailed under the New Jersey Casino Control Act.

Colorado Colorado legalized sports betting in 2019, and the legal age for placing sports bets is 21. The state has specific regulations that oversee online and in-person sports wagering.

Tennessee Tennessee is unique as it only allows online sports betting, with no physical sportsbooks. The legal gambling age for sports betting in Tennessee is 21.

Nevada Nevada has a long history of legal gambling, being one of the first states to regulate casinos and sports betting. The legal gambling age in Nevada is 21.

Massachusetts Massachusetts has a comprehensive set of gambling laws regulating casinos and sports betting, with the legal gambling age set at 21.

Arizona Arizona legalized sports betting in 2021, with a legal betting age of 21. The state has specific regulations for both online and in-person wagering.

New York New York has a legal gambling age of 21 for sports betting. The state regulates both online and in-person betting, with extensive rules to ensure fair play and responsible gambling.

Penalties for Underage Gambling

The consequences of underage gambling can be severe. A child caught gambling can face cash fines and potentially six months of jail time. 

Additionally, gambling operators that allow underage betting risk heavy fines and the loss of their operating licenses. Court actions may include the suspension of the child’s driver’s license for six months. Furthermore, repeated offenses can lead to more significant penalties, such as extended probation or community service.

By understanding and adhering to these laws, bettors and operators can contribute to a safer and more regulated gambling environment across the United States. These laws help ensure that wagering activities are conducted responsibly and legally, protecting both the operators and the patrons.

Legal Process and Seeking Legal Advice

When facing an underage gambling charge, understanding the legal process is essential. It is advisable to seek legal advice from a reputable law firm, as they can provide guidance tailored to the specific circumstances of the case. 

Experienced lawyers can help navigate the complexities of underage gambling laws and work towards a favorable outcome.

Additionally, it is important to note that a conviction for underage gambling can have long-term implications, including difficulties in securing employment due to a Criminal Record. Therefore, seeking legal advice early in the process is crucial.

Age Requirements for Different Types of Gambling

  1. Casino Gambling: In most U.S. states, the minimum age to enter a casino and engage in gambling is 21. However, some states allow individuals aged 18 to gamble in certain types of casinos or on specific types of games. For example, in Atlantic City casinos, the legal gambling age is 21, whereas some tribal casinos might allow gambling at 18.
  2. Sports Betting: The legal age for sports betting is typically 21, although some states permit betting at 18. This discrepancy often depends on whether the betting is done online or in-person.
  3. Lottery Games: Many states set the legal age for purchasing lottery tickets at 18. However, in some jurisdictions, the age requirement can be as low as 16.
  4. Online Gambling: The age requirement for online gambling usually mirrors that of land-based casinos, typically set at 21. Online platforms implement robust age verification systems to ensure compliance with these legal age requirements.
  5. Daily Fantasy Sports (DFS): The legal age for participating in daily fantasy sports is generally 18. However, some states have set higher age limits for DFS. For example, in Nebraska and Alabama, the minimum age is 19, while in Arizona, Iowa, Louisiana, and Massachusetts, it is 21.

Consequences of Underage Gambling

Engaging in underage gambling can have severe consequences for both the individual involved and the establishment allowing such activity. These consequences include legal penalties, a potential criminal record, and other social and psychological impacts.

Legal Penalties

Individuals caught gambling underage may face fines, community service, and other legal penalties. For instance, in New Jersey, underage gambling is considered a disorderly persons offense, carrying penalties such as fines and community service.

Criminal Record

A conviction for underage gambling can result in a criminal record, which can impact future opportunities for education and employment. Having a criminal record for gambling offenses can hinder job prospects and educational admissions, affecting the individual's long-term future.

Parental and School Disciplinary Actions

Beyond legal consequences, underage gamblers may also face disciplinary actions from parents and educational institutions. These actions can include suspension from school, loss of privileges at home, and mandatory counseling sessions.

Financial Losses

Young people engaged in gambling often face financial losses, which can lead to significant stress and further risk-taking behaviors. Without the financial literacy and resources to manage gambling losses, underage gamblers can quickly find themselves in debt and financial instability.

Risks and Consequences

The risks associated with underage gambling are multifaceted, impacting psychological, social, and financial well-being. These risks include addiction, academic and social consequences, and financial instability.

Addiction

Young people are particularly vulnerable to developing gambling addictions, which can have long-term consequences on their mental health and overall life trajectory. The developing brain is more susceptible to addictive behaviors, making early exposure to gambling particularly dangerous.

Academic and Social Consequences

Gambling can distract from academic responsibilities and social activities, leading to poor academic performance and strained relationships. Underage gamblers may skip school, neglect homework, and lose interest in extracurricular activities, negatively impacting their educational and social development.

Financial Instability

Underage gamblers often lack the financial literacy and resources to manage gambling losses, leading to debt and financial instability. This financial strain can exacerbate stress and lead to further problematic behaviors.

Penalties for Underage Gambling

Penalties for underage gambling vary by jurisdiction but commonly include fines, community service, juvenile detention, and mandatory counseling.

Fines

Monetary fines are a typical penalty for underage gambling offenses. These fines can vary widely depending on the jurisdiction and the severity of the offense.

Community Service

Courts may require underage gamblers to complete community service hours. This penalty aims to provide a constructive form of punishment and encourage positive community involvement.

Juvenile Detention

In severe cases, particularly where repeat offenses are involved, underage gamblers may be sentenced to juvenile detention. This measure is usually reserved for the most serious cases.

Mandatory Counseling

Some jurisdictions mandate counseling or education programs aimed at addressing gambling behavior and promoting responsible gambling practices. These programs can help young individuals understand the risks associated with gambling and develop healthier behaviors.

Caught Gambling Underage: What Happens Next

When an individual is caught gambling underage, several steps typically follow:

  1. Immediate Detention: The individual is usually detained by security personnel and may be handed over to law enforcement.
  2. Identification Verification: Law enforcement or security will verify the individual's age and identification.
  3. Legal Proceedings: The case may be referred to juvenile or criminal court, depending on the severity and jurisdiction.
Legal Representation

Seeking legal advice from a qualified attorney is recommended to navigate the complexities of the legal system. An attorney can provide guidance on the best course of action and help mitigate potential penalties.

Court Appearances

The individual may be required to appear in court, where a judge will determine the appropriate penalties based on the offense and jurisdiction. Court proceedings can be stressful and have long-lasting implications on the individual's record.

Rehabilitation Programs

Some courts may mandate participation in rehabilitation or counseling programs designed to address gambling behavior. These programs aim to educate young individuals on the risks of gambling and provide strategies for managing impulses.

Online Gambling Regulations and Enforcement

Online gambling presents unique challenges in enforcing age restrictions. Measures to prevent underage gambling online include:

Age Verification Systems

Online platforms implement robust age verification systems to ensure compliance with legal age requirements. These systems often require users to provide identification and undergo verification checks before participating in gambling activities.

Parental Controls

Parents are encouraged to use parental control features to restrict access to gambling websites. These controls can block access to gambling sites and monitor online activity to ensure minors are not engaging in gambling.

Regulatory Oversight

Regulatory bodies monitor online gambling platforms to ensure adherence to age restrictions and responsible gambling practices. This oversight includes regular audits, compliance checks, and penalties for platforms that fail to enforce age restrictions.

Additional Forms of Gambling and Age Requirements

In addition to traditional casino and online gambling, other forms of gambling have specific age requirements:

Off-Track Betting

Age requirements for off-track betting facilities typically align with those of other gambling venues, usually set at 18 or 21. Off-track betting involves wagering on horse races that are broadcast live at different locations.

Simulcast Facilities

Similar age restrictions apply to simulcast facilities, where live broadcasts of horse racing or other events are available for betting. These facilities often operate in conjunction with casinos or racetracks.

Prevention and Support

Preventing underage gambling and supporting those affected by it requires a multifaceted approach:

Education

Raising awareness about the risks and consequences of underage gambling through educational programs in schools and communities is essential. These programs can teach young people about the dangers of gambling and promote healthy behaviors.

Parental Involvement

Encouraging parents to engage in open discussions with their children about the dangers of gambling is crucial. Parents can play a pivotal role in preventing underage gambling by setting clear rules and monitoring their children's activities.

Support Services

Providing access to counseling and support services for young people struggling with gambling issues is vital. These services can offer professional help and guidance for managing gambling behaviors.

Legislation

Strengthening laws and regulations to protect minors from gambling and ensuring robust enforcement is necessary. This includes updating age verification methods and imposing stricter penalties on establishments that allow underage gambling.

Responsible Gambling

Legislating responsible gambling policies is a significant aspect of the regulations in every state that has legalized online betting. 

Compliance is essential for maintaining licensure and ensuring the well-being of bettors. States often implement self-exclusion programs, deposit limits, and responsible advertising practices to prevent excessive gambling.

Conclusion

Underage gambling is a serious issue that requires a comprehensive understanding of the laws, risks, and consequences associated with it. 

By adhering to age restrictions, promoting responsible gambling practices, and providing support and education, we can protect young people from the dangers of gambling and foster a healthier, more responsible gambling culture. 

Everything You Need to Know about Responsible Gambling

Meet Our Experts

Paruyr Shahbazyan began his business career in 2000 as a private entrepreneur. Over thirteen years, he developed a deep understanding for business and leadership, laying a solid foundation for his professional journey.

In 2013, Paruyr stepped into the sports and betting industry as the founder and president of Bookmaker Rating. This online mass media platform, which he led until 2020, focused on providing in-depth analysis and insights in sports betting, earning a reputation for its quality content. 

Continuing his innovative approach in 2022, Paruyr co-founded Azuro, a decentralized betting protocol. This venture showcases his dedication to integrating advanced technology in the evolving landscape of sports betting. Through these diverse experiences, Paruyr has continuously influenced and shaped the betting industry, driving new trends and setting high standards.

 ExperienceYear
Engaged in private entrepreneurship2000-2013
Founder and President at Bookmaker Rating, an online platform focused on sports and betting2013-2020
Co-founder at Azuro, a decentralized betting protocol2022

"Innovation in sportsbetting comes from a deep understanding of both technology and the human element of sports." 

- Paruyr Shahbazyan, Founder, RG

 

Principles and Ethics

Paruyr Shahbazyan's core beliefs lie in the power of informed decision-making and integrity in the betting industry. He understands that the foundation of successful betting is not just about odds and predictions, but also about the trust and reliability of the information provided. Paruyr advocates for a betting environment where transparency and knowledge are paramount, ensuring that bettors are well-equipped with accurate data and insights.

Strategic Vision

Paruyr's vision is to revolutionize the sports betting industry through the integration of technology. He sees the future of betting as a blend of traditional sports knowledge with innovative tech solutions, like decentralized protocols, to enhance user experience and fairness. His aim is to create platforms that are not only user-friendly but also uphold the highest standards of ethical betting, contributing to a more responsible and enjoyable betting culture.

Future Perspectives

Looking towards the future, Paruyr envisions a betting landscape that is more inclusive, technologically advanced, and globally connected. He anticipates a significant shift towards more decentralized and transparent betting systems, driven by blockchain technology. Paruyr is committed to being at the forefront of this change, continuously exploring new possibilities and innovations that can redefine what it means to engage in sports betting in a digital world. His focus is on building systems that prioritize user empowerment, fairness, and the global growth of the sports betting community.

 

Sol Fayerman-Hansen
Sol Fayerman-Hansen
Editor-in-Chief

Sol has over 20 years of experience in writing for diverse industries including sports, gambling, regulation, technology, and startups. As the Editor-in-Chief at RG.org, Sol brings a wealth of knowledge and expertise to the role, focusing on delivering transparent, evidence-based content grounded in thorough research. Sol's mission is to empower readers to enjoy gambling responsibly and make informed decisions, enhancing their overall experience through insightful and engaging content. Under Sol's leadership, RG.org prioritizes the highest standards of integrity and reliability, ensuring that all information provided is accurate and trustworthy. Sol's dedication to transparency and research-based writing helps create a responsible gambling environment where readers can truly benefit from the content. This commitment to excellence has positioned RG.org as a leading source of information in the gambling industry.

Experience:

  • Over 20 years in writing and editing across multiple industries
  • Former head of regional innovation at BMO Finanacial Group
  • Senior Writer, Online Casino Reports
Cristina Varela Galan
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