A growing body of research points to an unsettling trend on U.S. college campuses: a significant percentage of students are using financial aid—including federal loans and grants—to gamble.
Multiple recent surveys show that approximately 1 in 5 college students in the United States have used student aid to place bets, particularly through online platforms. With the explosive growth of sports betting apps and the normalization of gambling among young adults, this misuse of public and private education funds raises serious financial, ethical, and policy concerns.
A Look at the Data
Since the Supreme Court struck down the federal ban on sports betting in 2018, gambling—particularly online—has surged in popularity among college-aged individuals. Students have access not only to traditional campus distractions like card games or local casinos, but also to 24/7 mobile apps and websites offering fast payouts and endless opportunities to bet on sports, poker, and other games.
Financial aid, meant to support students' educational costs—tuition, books, housing, and food—is increasingly being used for riskier pursuits. A 2022 survey from Intelligent.com of nearly 1,000 students found that 16.7% of respondents admitted using financial aid or student loan funds to gamble. A follow-up survey in 2023 showed the number had risen to 20%, with most students confirming that access to aid increased their ability to place bets.
Other state-level reports from Nevada and Florida suggest a similar pattern, with 20–21% of students reporting misuse of aid for gambling purposes.
A Dangerous Cycle
The convergence of accessible credit, mobile betting platforms, and normalized gambling culture—often promoted through campus partnerships with major sports betting companies—has created an environment where student gambling is both easy and, in some cases, encouraged.
This behavior comes with serious consequences. Gambling with student aid can lead to:
-
Missed tuition or rent payments
-
Accumulation of unmanageable debt
-
Academic disruption
-
Increased psychological distress and financial insecurity
Students who gamble with loan money not only put their academic futures at risk but also burden themselves with debt obligations that cannot be discharged through bankruptcy. In effect, the use of student loans for gambling amounts to converting long-term federal debt into high-risk leisure spending.
What’s Being Done?
A handful of universities have begun implementing gambling awareness campaigns, and a few states have introduced legislation restricting betting advertisements on campuses. The NFL Foundation has pledged $600,000 toward gambling prevention efforts in higher education, but these measures are modest given the scale of the issue.
Financial aid offices and higher education institutions face difficult questions. Should students who use financial aid for gambling face penalties? Is financial literacy enough to deter this behavior, or is regulation required? Should gambling apps be restricted from targeting students?
Managing Madness
The use of student aid for gambling highlights a critical weakness in how we monitor and distribute public funds in higher education. As gambling becomes more prevalent and more accepted, especially through mobile platforms, policymakers and university leaders will need to consider stronger safeguards—not just to protect taxpayer dollars, but to preserve the financial stability and well-being of students themselves.
Sources:
-
Intelligent.com. (2022, 2023). Surveys on college student gambling habits.
-
GamblingHelp.org. "Problem Gambling Among College Students."
-
Nevada Council on Problem Gambling. (2024).
-
Time Magazine. (2024). “An Explosion in Sports Betting Is Driving Gambling Addiction Among College Students.”
-
The New York Post. (2025). “Online Gambling on the Rise Among High School Students.”
-
Florida Council on Compulsive Gambling. (2023).
