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The National Institute on Drug Abuse (NIDA) has raised concerns about a deepening crisis: gambling addiction is increasing among teenagers. During testimony before a House Appropriations subcommittee, Dr. Nora Volkow, director of NIDA, noted that the highest risk group is teenagers transitioning into young adulthood.
“In terms of the highest risk is teenagers, the transition from teenagers to young adults. What we are seeing is a significant rise in gambling, whether it is through sports or other means,” Volkow said. She explained that the brain circuits involved in drug addiction overlap with those tied to gambling, leading to compulsive behaviors. NIDA is currently studying whether medications used to treat opioid addiction could also help suppress gambling urges.
Prediction Markets and Teen Gambling
The rise in teen gambling coincides with the growth of prediction markets, which allow users to trade on sports outcomes. While these platforms argue they are financial instruments, critics warn they expose young users to gambling risks. Dr. Harry Levant, director of gambling policy at the Public Health Advocacy Institute, testified before a Senate Commerce subcommittee, stating, “The evidence is everywhere that we are in the early stages of a mental health and gambling addiction epidemic, and those most severely impacted are young men. This brings the focus squarely to the dangerous conduct of the prediction markets and a business model that attempts to deliver non-stop gambling to people as young as eighteen.”
Despite these concerns, prediction markets like Kalshi have joined the National Council on Problem Gambling, signaling a commitment to responsible gaming. However, the debate over whether these platforms constitute gambling remains unresolved.
Regulatory Debate Intensifies
While President Donald Trump has supported the expansion of prediction markets under the Commodity Futures Trading Commission (CFTC), some Republican lawmakers are pushing back. Sen. Ted Cruz (R-TX) has argued that prediction markets offering event contracts on sports are essentially sports bets. Meanwhile, Trump’s son, Donald Trump Jr., serves as a paid advisor to both Kalshi and Polymarket, and Trump Media is developing its own prediction market platform, Truth Predict.
The regulatory divide highlights the challenges in addressing teen gambling while balancing innovation in financial markets.
