Fears Grow Over Impact of Prediction Markets on Young Bettors

As sportsbooks and prediction markets become increasingly intertwined, one key difference has remained: minimum age requirements.

The vast majority of regulated sportsbooks require all bettors to be at least 21. However, prediction markets have their minimum set at 18. Now, one Truist analyst believes younger bettors are driving the industry's rapid growth.

That theory has responsible gaming advocates concerned that a problem gambling catastrophe is coming.

Truist Analyst Shares Theory on Predictions

Truist Analyst Barry Jonas recently shared his thoughts on the industry in his 2026 US Gaming Sector Outlook. One area he discussed was the rising volume seen by sports prediction markets. While he attributed much of that growth to bettors in states without legal markets, he also shared a more troubling theory.

Jonas believes that bettors aged 18 to 20 are finding a home on prediction platforms. The group is more comfortable with the technology involved, which allows them to bet and win real money on sports.

While no firm demographic breakdowns were provided, Jonas pointed to the popularity of college prediction markets. While college football is one of the country’s biggest leagues, sportsbooks still see more wagers on the NBA and NFL. 

That difference could be due to college-aged bettors backing their team. 

Younger Bettors Have Higher Risk for Problem Gambling

One reason why sportsbooks and casinos set their minimum age requirement at 21 is to protect younger bettors. It gives them a few years after high school to adjust to the real world and step into adulthood. That raises their maturity, which is why most adult activities in the US set their minimum at 21.

Responsible gaming advocates fear that combining youth with an unfamiliar form of betting will lead to massive losses. This can drive them to make even larger wagers, hoping to solve their problems with “one big win.” This is a vicious cycle seen from those struggling with gambling addiction, which has led to tragic consequences for far too many in the US.

Problem Gambling Funds May Dwindle

Another concern is the potential drop in investment in problem gambling resources. Most US states use tax revenue from sports betting to fund resources for problem gambling. While it doesn’t prevent gambling addiction, these tools have helped save many Americans from sinking deeper into debt.

Prediction market operators haven’t made a significant impact on the sports betting industry yet, but that could change soon. With those platforms not contributing revenue to the states, the money used to fund the fight against problem gambling could dry up. This would lead to these tools going offline, leaving countless bettors to struggle with addiction on their own.