New Report: Online Gambling Puts Youth, Members of the Military and Others at Great Risk of Financial Harm, Addiction and Depression

Online gambling has exploded – and that explosion is undermining the finances and mental health of millions of people, especially young men, according to a new report from the Kindbridge Research Institute in partnership with UCLA.

The numbers cited in the report are stark: Since the Supreme Court overturned a federal ban on most sports betting in 2018, participation in online gambling has soared from 15% in 2018 to 22% in 2024.

Almost 20 million U.S. adults reported problematic gambling behavior multiple times in the past year in a recent survey. And 2.5 million US adults meet criteria for a severe gambling problem in a given year, with 5 to 8 million more likely to meet some portion of the diagnosis.

Approximately 15% of people ages 18 to 34 showed “concerning gambling behavior,” compared to just 2% of adults 55 and older. The report attributes that vulnerability to poorer financial literacy, limited safeguards, the spread of highly visible “gambling-adjacent content” and heightened exposure to digital payments.

The report also highlights gambling’s harms. It cites research noting that states that legalized sports betting after 2018 recorded 28% more personal bankruptcy filings than states that didn’t.

And financial stress short of bankruptcy also takes a toll – some studies estimate significantly higher risks of suicide in people with gambling disorder, as well as detectable differences in the brain in areas connected to stress and emotional problems. And some groups are especially susceptible.

“Active-duty service members and veterans face distinct financial and psychosocial stressors that increase vulnerability to gambling-related harm and warrant tailored, culturally informed prevention approaches,” the report noted.

The authors attribute the rise in gambling to digital access, both to money and to betting. People used to bet with cash in casinos, but they can now bet online on almost anything, including sports and politics, from their phones.

“​This shift has outpaced existing public health, financial, and regulatory frameworks, leaving early indicators of gambling-related financial harm largely undetected,” according to the report.

The report also highlights a troubling pattern of normalization, using online prediction market Kalshi as an example. In December, Kalshi entered into a visible partnership with CNN, which places its real-time prediction data into its broadcasts and includes a live on-screen chyron showing odds for political, economic, and cultural events.

High-profile settings like this, the authors note, “blur distinctions between gambling, investing, and financial participation.”

This always-on digital access to gambling, frictionless funding, and scant early intervention is allowing harm to skyrocket before it is identified, researchers say. MindSite News interviewed Dan Umfleet, director of the Financial Stability & Responsible Gambling Initiative and CEO of Kindbridge Behavioral Health, about the problem. Here’s an excerpt of that interview:

Why are younger people in particular showing worrisome gambling behavior, and what kind of mental health problems can result?

Younger adults are growing up in a digital environment where gambling is highly visible, instantly accessible, and often blended with entertainment, gaming, and even investing. For many young people, gambling is not confined to casinos or sportsbooks.

It shows up in social media feeds, gaming environments, and influencer culture, which can normalize financial risk before people fully understand the consequences. When losses begin to accumulate, we often see the mental health impact quickly. Anxiety, depression, sleep disruption, and a cycle of shame or secrecy can make people reluctant to seek help.

Why is it so hard for institutions to connect the dots showing financial stress linked to gambling before people are in crisis?

Gambling-related financial distress rarely shows up in one place all at once. It might appear as anxiety in a clinical setting, debt in a financial system, or relationship stress at home, and those signals are usually seen by completely different institutions.

Right now, gambling harm often enters the system sideways. It appears as anxiety, financial panic, or family stress while the underlying behavior remains invisible. Because those systems aren’t connected, the underlying problem can go unidentified until the financial and emotional strain has already escalated.

To read the rest of the story and possible solutions, including the full interview with Dan Umfleet, please click here.