Study: Thousands of Kids Are Betting on Sportsbook Apps

Online sportsbooks in the US are uncovering thousands of underage gamblers each year using sophisticated investigative methods. Other times, parents report their children’s illegal bets to operators.

Companies like FanDuel and DraftKings are tracking phones through third-party geolocation vendors to verify a user’s location and identity and flagging bank accounts that appear to belong to minors. 

Kids have also been able to bet using their parents’ or a relative’s sportsbook account, while others are even committing more serious forms of fraud, like using stolen identities.

A USA TODAY analysis of “suspected fraud reports” filed with regulators in 10 states found that minors caught betting illegally are typically banned from an app.

The report comes as sports betting companies face criticism for marketing to underage kids. DFS contests, for example, are open to players as young as 18. DraftKings and FanDuel have both faced class-action lawsuits alleging their age-verification guardrails are insufficient.

Some States Release Data on Underage Gambling, Others Do Not

USA TODAY analyzed reports from the states that require sports betting operators to file reports on underage users. Other states said the reports are confidential or not required.

In Massachusetts, DraftKings said it blocked roughly 4,800 attempted registrations by minors last year and suspended 243 accounts. Meanwhile, FanDuel reported stopping 186 attempted sign-ups and closing 330 accounts.

In Tennessee, the number of instances of underage account use reported to the Sports Wagering Council increased from 105 instances in 2024 to more than 400 last year. 

Ohio tracks how much money is wagered. According to the Ohio Casino Control Commission, DraftKings generated 620 underage gambling reports totaling $2.78 million in wagers since 2023. FanDuel recorded 162 reports linked to $63,152 in suspected underage betting activity.

With the Super Bowl a few days away, it only raises the stakes that more minors may be enticed to find a way to bet on the game. Estimates for how much money Americans will legally wager on Sunday’s matchup between the Seahawks and Patriots range from $1.5-1.7 billion.

Sportsbooks Use Safeguards to Curb Underage Gambling

Legal sportsbooks have multiple levels of protection to prevent underage gambling. 

Know-Your-Customer (KYC), a process that includes users providing personal information to verify their age, is mandatory. In some instances, operators require biometric identification, such as taking a selfie with a government-issued ID. 

Sportsbooks also use precise GPS tracking through companies like GeoComply to ensure users are not in restricted areas, such as at school.

Critics Argue Sportsbooks Shoulder Some of the Blame

Parents feel that sports betting companies often don’t go far enough to keep minors from creating accounts. One mom interviewed by USA TODAY caught and reported her son gambling on BetMGM using an account with her ID. While the company banned his account, she complained that BetMGM’s defenses failed.

Current class action suits say sportsbooks are getting underage bettors comfortable on their platforms so they’ll be more likely to start gambling as soon as it’s legal for them.

Sportsbooks target their main demographic, men aged 21-34, with heavy advertising on platforms easily visible to minors – TV, sports venues, billboards and radio. 

Social media and YouTube algorithms also expose minors to gambling. According to findings published in a Common Sense Media study released last week, 59% of boys aged 11-17 surveyed reported that gambling content appeared in their feeds even though they didn’t search for it.

Regulators Opt for Prevention over Punishment

Regulators and politicians say they’d rather focus on awareness for minors and parents than let judges decide their fate. Massachusetts’ Gaming Commission Chair Jordan Maynard said the challenge is striking the right balance between the two approaches.

“It’s an opportunity to educate (minors) and parents about harmful behavior,” he told USA TODAY. ”We have to use the regulatory toolbox and bully pulpit in our public meetings to be honest about this problem and what we can realistically do to tackle it.”