Investigation uncovers disturbing online threat to young people: 'They have this false notion in their head'

Online crypto casinos are rapidly gaining popularity across the internet. And thanks to the anonymous nature of cryptocurrency, these casinos often lack the regulations of more reputable companies. This has created a potentially costly combination for many young users.  

What's happening?

As reported by The New York Times, online crypto casinos have become a multibillion-dollar industry seemingly overnight. As cryptocurrency exploded in popularity in the past decade, some companies saw an untapped market of crypto investors with money to spend. 

While online crypto casino platforms operate fairly similarly to traditional online casinos, they use blockchain technology for transactions, offering enhanced privacy, faster processing times, and lower fees. Users can then bet on various games such as slots, poker, and roulette, and quickly cash in their winnings.  

However, many of these sites base their operations and obtain licenses in jurisdictions with more relaxed gambling and cryptocurrency laws. The sites often lack true consumer protection, potentially leading to no legal recourse for players involved in legitimate disputes, especially teenage users. 

Why is the rise of online crypto casinos important?

Those who visit online crypto casinos can sometimes see a downturn in their overall economic well-being. The addictive nature of these sites can lead to what's known as a dopamine loop, where a person can repeat an action over and over again in hopes of feeling joy or a sense of accomplishment. 

When this involves real-world money, betting can quickly spiral out of control, resulting in large financial losses and a sense of desperation to recoup those losses. And with the rise of cryptocurrency, some users may actually underestimate just how impactful their dopamine loop can be. 

Speaking to The New York Times, one 18-year-old crypto gambler witnessed just how fast their fortunes can turn. Once they turned 18, they invested over $12,000 in crypto from their savings. They then used that currency to place wagers while using online crypto casinos. After experiencing a brief windfall, the user eventually lost everything. 

"I lost sight of what money actually is," they said. 

What's being done about crypto gambling in young adults?

Matt Missar, a gambling counselor at The Better Institute in Pittsburgh, noted just how easy it can be for teens and young adults to fall into the potential trap of online crypto casinos. "They're watching these streamers, and the streamers are winning their bets," Missar said to The New York Times. "They have this false notion in their head that it's just a matter of time until I hit it big like Drake did, or like Adin Ross did." 

According to Joshua Grubbs, an associate professor at the University of New Mexico and an online addictions expert, the way that crypto casinos and the simplicity of gambling are marketed play a massive role in luring young adults into a false sense of security. 

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"You're having a largely unregulated, largely wild west kind of approach to advertising," Grubbs told The New York Times. "The absence of guardrails means that a disproportionately large number of people are going to develop problems." 

In an effort to combat the growing popularity of online gambling, the National Association of Attorneys General penned a letter to U.S. Attorney General Pam Bondi in August. They requested a renewed legal approach to hold "illicit offshore gambling markets" responsible for the spread of illegal gambling. 

"We seek the [United States Department of Justice] cooperation in ensuring these companies are brought to justice to the fullest extent available under state and federal law, both criminal and civil, for any potential violations," the letter reads. 

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