The Rise of Teenage Gambling on Prediction Markets

In early 2026, analysts have observed a concerning trend of teenage gambling, particularly among 18-to-20-year-olds, who are increasingly turning to prediction market platforms like Kalshi. These platforms allow users to bet on various events, including sports and political outcomes, often with fewer age restrictions compared to traditional gambling venues. Truist analyst Barry Jonas highlights that this demographic is particularly drawn to betting on college sports, with data indicating that 25% of U.S. men aged 30 and under engage in sports wagering, and 10% of this group report having a gambling problem.

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Prediction markets operate differently from traditional sports betting. While traditional gambling involves betting against odds set by bookmakers, prediction markets allow users to trade contracts based on collective beliefs about event outcomes. Joshua Shuart, a professor at Sacred Heart University, explains that this model creates a unique environment where younger gamblers may feel more knowledgeable and confident in their bets. The appeal of prediction markets lies in their broad range of betting options, which can include non-sports-related events, making them accessible and enticing to younger users.

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Experts express alarm over the increasing participation of young gamblers in prediction markets. David Hampian, founder of Field Vision Group, notes that the design of these platforms, which incorporates elements from social media and gaming, can blur the lines between entertainment and gambling. The ease of access and the perception of informed betting may encourage risky behavior among youth.

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Despite the growing concern, regulatory efforts to limit access for younger users have been minimal. While some states, like Massachusetts, have attempted to enforce age restrictions—such as suing Kalshi for allowing underage access—prediction markets argue that they operate under federal regulations that supersede state laws. This legal ambiguity allows platforms to maintain their current practices, often at the expense of younger users' safety.

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To mitigate the risks associated with prediction markets, experts recommend proactive measures for parents and caregivers. Nathan Carroll, national medical director at InSite Health, suggests monitoring for signs of gambling-related issues, such as mood swings or financial distress. Parents can block access to these platforms and engage in discussions about the potential risks of gambling. Encouraging a growth mindset and providing healthy alternatives for expressing beliefs can also help protect young individuals from the adverse effects of gambling.

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As the popularity of prediction markets continues to rise, particularly among younger demographics, the potential for addiction and mental health issues becomes a pressing concern. Experts emphasize the importance of awareness and intervention to prevent the negative consequences associated with gambling. With youth being less risk-averse and more susceptible to addiction, it is crucial for families and regulators to address this emerging trend effectively.

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• “The fact that you can predict and wager upon just about everything could be both exciting and horrifying,” — Joshua Shuart, Professor, Sacred Heart University

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• “Prediction markets like Kalshi are borrowing from the creator economy and sports betting UX playbooks to make wagering feel like informed opinion rather than gambling, which is exactly what makes them attractive, and potentially risky, for younger users,” — David Hampian, Founder, Field Vision Group

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• “Younger people tend to be less risk-averse and less worried about consequences in general,” — Joshua Shuart, Professor, Sacred Heart University

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