Australia’s Teenage Gambling Crisis: 600,000 Underage Bettors

Nearly 600,000 Australians under 18 are gambling, with total teenage betting expenditure reaching $231 million a year, according to new research from the Australia Institute — published as the federal government continues to delay action on gambling advertising reform.

Scale of the Problem

The Australia Institute’s April 2025 report, Teenage Gambling in Australia, found that 30% of 12-17-year-olds had gambled in the previous year, despite the legal gambling age being 18. That rate climbs to 46% among 18-19-year-olds.

The financial exposure breaks down sharply by age group. The 12-17 cohort accounts for roughly $18.4 million in annual expenditure — around $30 per underage gambler. The 18-19 group drives the bulk of the total, spending an estimated $213 million a year, averaging $321.10 per person. The shift from underage to legal-age gambling represents a 16-percentage-point jump in participation within a single year.

Lead researcher Morgan Harrington of the Australia Institute described the findings as “alarming and shocking,” adding that the spike at age 18 is not merely curiosity. “What our analysis shows is that the numbers don’t go back down until at least the mid-20s,” Harrington said. The data suggests that betting behaviour established in adolescence solidifies rather than fades — and the legal threshold does not reset the trajectory.

The research was based on a nationally representative survey of 1,000 young people aged 12-17 and a further 1,000 aged 18-19.

More Teenagers Bet Than Play Sport

The Alliance for Gambling Reform, which cited the Australia Institute findings in a public release, placed the scale of underage participation in stark context: the number of teenagers gambling under the legal age would fill the Melbourne Cricket Ground six times over. Across both age groups combined, more teenagers are now betting than are playing soccer or basketball.

The Australia Institute’s report identifies advertising saturation as a primary driver of normalisation. Gambling promotions are woven into broadcast sport, social media feeds, and digital platforms that teenagers use daily. X’s recent ban on gambling paid partnerships and YouTube’s restrictions on gambling content reflect growing platform-level pressure — but federal broadcast advertising rules have not moved.

The Murphy Report, the 2023 parliamentary inquiry into online gambling harm led by the late Labor MP Peta Murphy, made 31 recommendations. Its central call was a phased three-year ban on all gambling advertising. The inquiry concluded that the volume of betting promotion was normalising gambling and specifically grooming young people to bet. Cross-party support for the report did not translate into legislation.

Reform Stalled Under Albanese

The Albanese government delayed its response to the Murphy Report repeatedly through 2024, citing complexity and insufficient Senate support. Following Labor’s re-election in May 2025, Communications Minister Anika Wells took over the portfolio and was tasked with developing a revised national framework. By November 2025, industry sources indicated the government was retreating to a watered-down position — most likely a “whistle-to-whistle” restriction on ads during live sport rather than a comprehensive ban.

As of early 2026, more than 919 days had passed since the Murphy Report was tabled without a government response. Independent MP Andrew Wilkie accused the government of being unduly influenced by entities that profit from betting. Senator David Pocock labelled the delay “gutless.”

Public sentiment sits well ahead of policy. Polling by the Australia Institute found approximately 72-76% of Australians support a ban on gambling advertising — figures cited across multiple surveys including one of AFL fans specifically. The gap between public opinion and legislative output reflects the financial weight of sports bodies, broadcasters, and wagering companies in opposing reform.

Access Gaps Enable Underage Participation

Researchers point to several structural weaknesses that allow underage gambling to persist at scale. Offshore platforms operating outside Australian regulations do not enforce age requirements. Legal-age accounts belonging to parents or older friends are used by younger teenagers to place bets. The Australia Institute’s report notes that operators struggle to detect this type of access. Australia’s recent ACMA classification of prediction markets as gambling adds another product category that sits outside legacy age-restriction frameworks.

Beyond the financial loss, researchers identify a range of associated harms: mental health deterioration, academic decline, debt, and strained family relationships. Secondary school teacher and co-founder of Gambling Education Australia, Matthew Sekfy, told reporters that underage sports betting is “commonplace and an open topic of conversation amongst secondary students.” His assessment: the Australia Institute’s findings may underestimate the problem.

The federal government’s next formal opportunity to table advertising legislation is the 2026 parliamentary calendar. Whether Communications Minister Wells advances substantive reform or a narrower version designed to satisfy sporting and media stakeholders remains the central policy question for the market.

Source: The Australia Institute