Online crypto casinos are exploiting social media influencers and celebrities to attract a young audience, leading to widespread gambling addiction among teenagers. These offshore sites, illegal in the United States, offer easy access through weak verification and cryptocurrencies. A New York Times investigation reveals how streamers and stars like Drake promote reckless betting, drawing in vulnerable users.
The rise of crypto casinos has created a multibillion-dollar industry that bypasses traditional gambling regulations. Eight years ago, these sites were obscure, but now operators like Stake and Roobet generate massive revenues—Stake reported $4.7 billion in gaming revenue in 2024. Licensed in places like Curaçao, they provide games such as blackjack and slots, accessible via cryptocurrencies that evade U.S. financial systems.
Young people, particularly those under 25, face heightened risks due to developing brains, experts note. David, who began betting at 14 during the pandemic, watched influencers like Adin Ross and celebrities including Drake play on these platforms. By 18, he had lost over $12,000 in savings and $4,000 in loans. "I lost sight of what money actually is," David said after graduating high school in May.
Marketing relies heavily on livestreamers who broadcast gambling sessions daily, building communities on platforms like Kick, launched by Stake after Twitch banned crypto casino content in 2022. Affiliates earn commissions on recruits' wagers, with top streamers securing six-figure deals. In August, Drake streamed a three-hour session with Ross, xQc (Félix Lengyel), and Trainwreck (Tyler Niknam) on Stake, saying, "I’ve dreamed of this night. All my guys in one spot."
Snoop Dogg ended his Roobet partnership in September, stating he takes such issues seriously. Sites lack robust identity checks; a 2022 study found 37 of 40 popular crypto casinos skipped proof of identity for deposits. Users employ VPNs and false IDs to access them, ignoring self-exclusion requests. Counselors like Matt Missar report seeing dozens of young patients addicted via streamers: "They’re watching these streamers, and the streamers are winning their bets."
Regulators lag behind. U.S. states have issued cease-and-desist letters, and lawsuits accuse sites of deceptive practices, but offshore licensing complicates enforcement. A coalition of 50 attorneys general seeks federal aid to seize assets. As therapist Nancy Key observes, young users develop anxiety and drop out of school, with the industry's spread outpacing solutions.