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As prediction markets surged in popularity during the recently concluded World Cup, addiction specialists across Los Angeles say they have seen a noticeable rise in young people seeking help for gambling-related problems. Many point to Kalshi, the country’s largest federally regulated prediction market, as a growing entry point into gambling behavior for a generation that may never have visited a casino or used a traditional sportsbook.
Kalshi, which dominates the U.S. prediction market industry, handled roughly $1.1 billion in contracts tied to the World Cup alone. Users traded contracts on match outcomes and countless other events, from politics to entertainment, as the platform’s overall activity climbed sharply over recent months.
Unlike conventional sportsbooks, prediction markets remain legal in California despite the state’s prohibition on sports betting. The platforms operate under federal financial exchange regulations because participants buy and sell contracts with one another instead of wagering directly against a bookmaker. While several states have challenged that distinction in court, California has not launched its own legal action.
Clinicians report a rise in younger patients
Clinicians working with gambling disorders say the legal status has created an accessible alternative for people who might otherwise have been unable to place sports wagers.
Dan Field, clinical director of Westside Gambling Treatment in Los Angeles, said his practice has seen a growing number of younger sports fans turning to Kalshi, with some developing compulsive gambling patterns soon after discovering the platform. One patient who had largely avoided gambling for nearly two years after relocating to California resumed betting shortly after beginning to use prediction markets, reversing significant progress in recovery.
Similar trends have emerged at UCLA’s Gambling Studies Program. Co-director and addiction psychiatrist Dr. Timothy Fong said the clinic has experienced an increase in patients seeking treatment as prediction markets have become more widely used. For many of those arriving for care, these platforms represented their first exposure to gambling, introduced through interests in sports or investing rather than traditional casino gaming.
A platform designed for constant engagement
Former users describe features that blur the line between investing and wagering while encouraging constant engagement.
Yisroel Solomon, who previously bet on sports while living in New York before switching to prediction markets after moving to California, said rapidly changing prices and continuous trading opportunities intensified emotional responses such as fear of missing out and the urge to keep chasing wins. Unlike sportsbooks, where betting opportunities are generally tied to scheduled events, prediction markets remain active around the clock across subjects extending well beyond sports.
Others say the design of the platform contributes to its appeal. Jacob Hofflich, a University of Michigan student from San Diego who began using Kalshi after turning 18, said the interface resembles a financial trading platform, with flashing price charts and live activity feeds that encourage users to remain engaged. Hofflich has since stopped gambling and has worked with Field during his recovery.
Growing concerns over younger users
Age restrictions have become another point of concern. Because prediction markets are not governed by California’s gambling laws, users can generally open accounts at 18 rather than waiting until the minimum age that applies to many forms of gambling in the state.
Some addiction specialists believe that lower age threshold, combined with heavy advertising during major sporting events, has made the platforms especially attractive to college-age users. Field said advertisements depicting young adults socializing while using prediction markets can normalize gambling behavior and make the activity appear less risky.
Kalshi disputes suggestions that its marketing targets younger audiences. Company spokesperson Jack Such said advertising is not directed by age and that customers between 18 and 22 account for only about 3% of the platform’s trading volume.
Therapists say concerns extend beyond college students.
Deborah Buhaj, a Los Angeles gambling addiction counselor, said parents have increasingly contacted her after noticing dramatic behavioral changes in adult children who had recently begun using prediction markets.
Fong also reported treating minors who gained access to accounts using parents’ identification. In one case, he said a mother unknowingly created a Kalshi account for her 14-year-old son after mistaking the platform for a video game. He argues that allowing children access to gambling platforms carries risks comparable to giving them access to other potentially harmful substances or activities.
Campus culture and financial consequences
Research conducted through UCLA’s Gambling Studies Program suggests prediction markets have already established a foothold on campus. A recent survey of members of Greek organizations found that 13% had used prediction market platforms, while more than 90% of respondents who reported gambling also said financial losses had affected their ability to cover living expenses.
Fong described one student who was introduced to prediction markets after joining a fraternity. Early success eventually gave way to mounting losses, with the student ultimately losing more than $150,000 in personal funds over roughly 18 months.
Still, student leaders say prediction markets have not replaced other forms of gambling. Louie Latosquin, president of UCLA’s Interfraternity Council, said traditional card games such as poker, blackjack and baccarat remain the most common gambling activities within campus social circles. Prediction markets, he said, tend to be concentrated among students who already gamble heavily.
Outreach adapts to a changing gambling landscape
As demand for treatment grows, prevention efforts are evolving alongside the technology. Organizations focused on gambling addiction have begun developing educational resources aimed at high school students, while UCLA clinicians have expanded outreach sessions at fraternities to include discussions about digital gambling platforms. Student leaders have also encouraged peers to direct discretionary spending toward education, professional development and other long-term investments rather than speculative betting.
Source: laist.com
