Is underage gambling a felony? The answer depends on the circumstances and jurisdiction, but the act of minors gambling, especially when enabled by predatory online platforms, carries serious legal and personal consequences. Newly legalized online gambling and sports betting companies are targeting children and teenagers with influencer marketing and weak age-verification systems, exploiting their vulnerability to addiction. Understanding the legal implications is crucial for parents and affected families seeking to protect their rights.
Legal Status of Underage Gambling
Underage gambling is generally illegal across the United States, with laws varying by state. Most jurisdictions classify it as a misdemeanor for the minor involved, punishable by fines or community service, rather than a felony. However, the severity can escalate if the minor incurs significant financial losses or if the gambling operation knowingly targets or facilitates underage users. In such cases, companies or individuals enabling this behavior, such as those failing to enforce Know Your Customer (KYC) protocol,s could face felony charges for contributing to the delinquency of a minor or operating an illegal enterprise.
Online platforms like DraftKings, Sleeper, Stake.com, BetMGM, PrizePicks, FanDuel, and others have come under scrutiny for using influencers to glamorize gambling and allowing self-reported ages instead of robust verification. While the minor's direct participation is typically a misdemeanor, these companies' actions could lead to felony-level lawsuits if proven to have intentionally exploited underage users.
Consequences Beyond Legal Penalties
Even if underage gambling itself isn’t a felony for the minor, the fallout can be devastating. Young people lured into betting apps often face:
- Financial Ruin: Losses exceeding $30,000 are not uncommon, plunging families into debt.
- Addiction Risks: Adolescent brains are highly susceptible to compulsive gambling, leading to lifelong struggles.
- Legal Repercussions: Parents or guardians might face liability if they unknowingly enabled access, though cases with explicit permission are typically disqualified from litigation.
- Mental Health Issues: Anxiety, depression, and disrupted education or careers are frequent outcomes.
This crisis is driven by companies redesigning platforms like turning fantasy sports apps into betting hubs while neglecting proper safeguards, creating a perfect storm for underage exploitation.
When Does It Become a Felony?
A felony charge is more likely to apply to the operators or facilitators rather than the minor. Factors that could elevate a case to felony status include:
- Evidence of intentional targeting of minors through marketing or platform design.
- Significant profits are derived from underage gambling, constituting organized crime.
- Repeated violations of state gambling laws or federal regulations.
For instance, if a company’s inadequate KYC protocols are shown to enable widespread underage access, prosecutors could pursue felony charges against corporate entities or executives. Families affected by this can explore legal recourse, especially if the minor meets specific criteria for litigation.
Who Qualifies for Legal Action?
If your child was under 18 when they began using a gambling or sports-betting platform, lost at least $30,000, and has a gambling addiction diagnosis or is in treatment (e.g., Gambler’s Anonymous), you may have a case. We do not accept cases where the user started as an adult or where parents gave permission for the child to gamble. Consulting an attorney can help determine eligibility and next steps.
Why Seek Legal Help?
Companies profiting from underage gambling must be held accountable. An experienced underage gambling attorney can investigate whether felony-level negligence applies and pursue compensation for losses, treatment costs, and emotional distress. This not only aids recovery but also pressures platforms to strengthen age verification.
If you’re concerned about whether underage gambling is a felony in your situation or how it affects your family, contact Clinton O. Middleton Attorney At Law today by calling (703) 777-9630 or filling out the contact form for a free consultation. Let us help you navigate this complex issue and seek justice.
