What is gambling?
Gambling is where people risk money or valuable items to win a prize based on an unknown result. It is a game of chance, so the odds of winning are generally low.
There are many forms of gambling; some common types are racing and sports betting, slot machines (pokies), betting on card games, lotteries and scratch tickets (scratchies). In recent years, online gambling has become more popular and many video games have gambling-like features; this is known as ‘gamblification.’
Gambling for teens and young people
The legal age for public gambling is 18 years in Australia, but research shows that most Australian teenagers have gambled in some way.
Teenagers often take part in informal types of online gambling like buying ‘loot boxes’ in video games. Unlike public gambling, informal online gambling has less regulation in Australia.
All forms of gambling can be addictive and hard to stop.
Types of gambling and gambling-like activities for young people include:
- Smartphone games with in-app purchases (microtransactions)
- ‘Loot boxes’ in video games
- Horse and dog races
- Raffle tickets
- Sports betting
- Card games
- Lottery tickets and scratch cards
- Arcade games and claw machines
Some of these examples are not traditional types of gambling. However, they involve risking something on an unknown result and therefore they encourage gambling-like behaviour.
Gambling in advertising
Young people learn about gambling from an early age. They visit arcades and play games to risk money for prizes. They turn on the television and see gambling ads. They watch social media videos sponsored by betting companies. By the time they are teens,
many view gambling as a normal part of life.
Gambling companies must follow rules about when and how they can advertise in Australia. For example, gambling ads cannot be shown during children’s tv shows or at certain times of day; however, these rules do not apply to news or sports. This means that
a child watching football on a Saturday afternoon may see gambling ads during breaks in play.
Gaming and gambling
Young people may see gambling and gambling-like elements in video games and other forms of digital entertainment. Many popular games prompt players to spend real money on unknown outcomes and take risks to improve their in-game experience.
What is gamblification?
Gamblification refers to gambling-like features in video games and other types of digital entertainment. These elements could be small and rare, like spinning a roulette wheel for an in-game bonus, or they could be the focus of the game.
Examples of common gambling-like features include:
- Tokens are bought with real money and can be exchanged in a game for specific items or packs with random contents – from performance boosts to weapons.
- ‘Loot’ boxes are mystery boxes bought using tokens or real money. They usually hold in-game items, upgrades and ‘skins’ to change the look of avatars (characters).
- Simulated gambling elements mimic the look, sound and actions of traditional gambling but do not involve winning or losing real money.
Loot boxes are common in online video games as they make a lot of money for gaming companies. Like traditional gambling, loot boxes encourage players to risk money without knowing the outcome. If they are unhappy with the items in a loot box, they may want to ‘chase their losses’ and keep buying more until they feel they have won – no matter the cost.
Why is gambling bad for teens?
The decision-making parts of the brain are not fully formed until around age 25. This means that teens may find it hard to understand the dangers of gambling, making them more impulsive. They can lose control of their actions and struggle to stop gambling.
Gambling in childhood increases the chances of gambling problems in adulthood.
Aside from losing money, teens who gamble may also:
- Feel shame and guilt
- Develop mental health problems, such as depression and anxiety
- Have problems with alcohol and other drugs
- Perform poorly at school
- Skip school
- Have relationship problems with family and friends.
Signs that my child has a gambling problem
Teens and young people may not admit to gambling. In some cases, they may not even know their actions count as gambling. It is important to note that not every young person who gambles will develop gambling problems.
Warning signs of problem gambling could include:
- Changes in spending habits, such as asking for money more often
- A drop in school marks and taking multiple days off school
- Acting sad, distracted or withdrawn
- Low energy levels and poor sleep patterns
- Less interest in usual activities, such as after-school sports
- Sudden interest in professional sports and sporting results, including checking scores for multiple sports at once
- Use of gambling terms in conversation, such as ‘line’ and ‘spread’.
Support is available for young people with a gambling problem. If your child is showing multiple warning signs, you may want to speak to a doctor or gambling helpline for advice.
How do I talk with my child about gambling?
Talking with your child about gambling is the best way to teach them about the risks. It is important to have an open discussion free from judgement. Lecturing your child may build resentment and push them into riskier behaviours. The goal is to make
them feel supported – whether they have gambled before or not.
Timing is the key to a helpful conversation. Teens and young people are more likely to talk freely when relaxed and not focused on anything else. For example, your child may not want to chat while they are playing a video game. After dinner or driving
to school may be good times to raise the subject.
You could also start a conversation when your child asks for money to buy game tokens or when a gambling ad comes on television. Asking questions such as ‘Tell me about why you want to buy tokens’ and ‘Where have you seen ads like this before?’ will prompt
a discussion without putting pressure on your child.
Key points to remember
- Gambling is the act of risking money or valuable items to win a prize based on an unknown result.
- The chance of winning more often than losing is low.
- The legal age for public gambling is 18 years in Australia.
- Teens and young people may gamble in video games without realising – such as buying tokens or loot boxes
- Gambling in childhood raises the risk of gambling problems in adulthood.
- Talk with your child about gambling in a supportive way and avoid lecturing them.
- Seek help from a doctor or gambling helpline if you are worried your child has a gambling problem.
Common questions about teen and adolescent gambling
Is gambling legal in Australia?
Gambling is legal in Australia; however, the legal age for public gambling is 18 years old. This applies to traditional gambling, like slot machines and digital gambling, like online poker.
We sometimes buy lottery tickets and place bets as a family during major sporting events. Do these count as gambling?
Lottery tickets and sports betting are types of gambling. If you choose to involve your child in these activities, it is a good idea to speak to them about the risks involved and the chances of losing.
Which teens are more likely to develop gambling problems?
Some teens are more likely to develop gambling problems than others. Gambling problems are more common in teens who are male, have poor mental health, are exposed to gambling advertising, have friends and family who gamble and do other risky behaviours
like taking drugs.
Why is my child gambling?
Gambling is a form of entertainment; many teens and young people may gamble because they think it seems fun or they want to win money. For some, gambling is a way to escape unwanted emotions.
How do I know if my child needs help with a gambling problem?
If you have child noticed some warning signs, you may wish to speak to a doctor or gambling helpline for advice.
For more information
Developed by The Royal Children's Hospital Adolescent Medicine department. We acknowledge the input of RCH consumers and carers.
Reviewed September 2024.
This information is awaiting routine review. Please always seek the most recent advice from a registered and practising clinician.