Online Gambling Statistics and Consumer Risks
Online gambling has become far more common in recent years, with the legalization of some forms of sports betting in most states contributing to the rise in popularity. However, with this rise comes risk, especially for high-risk groups like young men. Gambling on mobile devices is more readily accessible and may increase the risk of gambling-related harm for some people.
- October 19, 2026
Online casino games and fast online betting products, including sports betting, may contribute to gambling-related harm. Prediction markets can raise similar concerns, though their treatment under gambling law remains disputed. A recent National Council on Problem Gambling report showed that nearly two-thirds of adults aged 21 and older reported participating in at least one form of gambling before age 21. The most common activities included lottery tickets, scratch-offs, home games, sports betting, online casino games, and prediction markets.
Online Gambling Statistics at a Glance
Revenue in the gaming industry has significantly increased over the past decade. As of August 2025, the American Gaming Association estimated that Americans wager nearly $700 billion each year in illegal and unregulated markets, including sports betting, online games, and unregulated machines.
Though the illegal gambling market grew 22% between 2022 and 2025, growth in the legal market in recent years has curbed illegal gambling slightly. Illegal operators still make up nearly a third of the total U.S. gambling market, but 39 states and Washington, D.C., now feature live, legal sports betting markets. Today, about 22% of Americans, and nearly half of men ages 18-49, report having at least one online sportsbook account.
What Are the Biggest Consumer Risks of Online Gambling?
The increased availability of online gambling has been one of the biggest changes to gambling in the last decade, causing increased rates of disordered gambling. Excessive gambling comes with serious risks, from financial losses to identity theft.
Financial Losses
Online gambling involves the possibility of losing money, and easy access to online betting can make repeated wagering easier. Gambling mobile apps have significantly increased access to casino-style games and sports betting, making it easier for people to lose thousands of dollars with a single tap.
Gambling Addiction
Problem gambling, or gambling addiction, occurs when someone cannot control their urge to gamble, no matter how severe the consequences have been on their life. Not all recreational gambling constitutes a gambling addiction, but online gambling is a slippery slope to addictive behavior.
Nearly 8 in10 Americans say gambling addiction is as serious as or more serious than other forms of addiction, like alcohol or drug addiction. However, only 15% of Americans reported ever being asked about gambling behavior by a primary care provider.
Impulsive Betting
Rapid betting and in-play wagering can encourage quick, repeated decisions without consideration for financial losses.
Debt and Financial Stress
Gambling losses can contribute to financial difficulties for some consumers, causing significant debt and, in some cases, necessitating bankruptcy.
Fraud and Consumer Complaints
Consumers should be cautious about unfamiliar operators when gambling–illegal gaming still occupies nearly a third of the U.S. gambling market, and is far more likely to result in fraud.
Privacy and Data Security
Online gambling has become a niche for cyberattacks. Between 2022 and 2024, online gambling fraud grew an average of 64% per year. Data breaches at gambling companies have also affected millions of consumers’ personal information. These firms are attractive targets due to their expensive digital footprints, financial and personal information, and constant uptime. It’s crucial for users to understand what information a gambling platform collects and how it protects consumer data before inputting any personal or financial information.
What Federal Laws Protect Online Gambling Consumers?
The legal landscape around American gambling is constantly changing, as more states move to legalize sports betting and online gambling following intense lobbying pressure from gambling companies. Some of the main federal laws that may affect online gambling and related transactions include the Unlawful Internet Gambling Enforcement Act and the Federal Trade Commission Act.
Unlawful Internet Gambling Enforcement Act (UIGEA)
The Unlawful Internet Gambling Enforcement Act (UIGEA) prohibits businesses engaged in betting from knowingly accepting certain forms of payment connected to internet gambling that is unlawful under applicable law. It also directs federal regulators to establish rules addressing payment systems involved in those transactions. The UIGEA does not make all online gambling illegal. Rather, it addresses payments connected to gambling that is unlawful under other federal or state laws.
Federal Trade Commission Act
Section 5 of the Federal Trade Commission (FTC) Act prohibits unfair or deceptive business practices in commerce. The FTC may take enforcement action when it has reason to believe a company within its jurisdiction has engaged in such conduct, although it generally does not enforce Section 5 directly against banks. The FTC’s consumer-protection authority may be relevant to misleading representations, deceptive marketing, or other unfair business practices by online gambling companies. Section 5 does not itself give consumers a right to sue.
How Can Consumers Reduce the Risks of Online Gambling?
There will always be a certain degree of risk that comes with online gambling. Still, there are best practices consumers can use to minimize the chance of serious financial and personal losses.
Set a Fixed Gambling Budget
Set a fixed budget for the amount of money you’re willing to spend on gambling, and stick to it. Treat gambling money as money you can afford to lose rather than an income source.
Set Deposit or Spending Limits
Platform controls on gambling apps or banking platforms may help limit spending.
Avoid Chasing Losses
Previous losses do not increase the probability of winning the next bet. Don’t chase a loss just for the chance to get the dopamine hit of a win.
Use Self-Exclusion Tools
Self-exclusion is a voluntary process that allows users to ban themselves from gambling apps and venues in order to control their behavior. It can help users restrict access to gambling platforms.
Avoid Gambling With Borrowed Money
There are significant financial and social risks to gambling with borrowed money. Only bet money that is yours and that you can afford to lose.
Take Breaks
Monitor how frequently you gamble, and take breaks whenever possible.
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