When Skill Meets Addiction: Esports, Fantasy Sports and the Hidden Rise of Gambling Harm

Not long ago, gambling meant pokies, racetracks or casinos. Today, it can happen quietly in a bedroom — through fantasy sports, online gaming, or esports betting. For a growing number of Australians, these modern, digital forms of wagering are blurring the line between play and addiction.

While they may look harmless or even skilful, studies from the National Institutes of Health (NIH) and the World Health Organization (WHO) show that the same reward pathways and impulsive behaviours seen in traditional gambling are strongly activated in these “skill-based” platforms. It’s a subtle but powerful trap — and one that’s drawing in a much younger demographic than ever before.

The New Face of Gambling

Esports betting involves placing real-money wagers on professional video game tournaments, while fantasy sports allow players to create virtual teams of real athletes and compete for cash prizes. Both rely on perceived skill — analysing stats, forming strategies, and “outsmarting” others — but the outcome remains governed largely by chance.

Research published in the Journal of Gambling Studies and PubMed Central found that esports and fantasy sports bettors are two to three times more likely to meet problem-gambling criteria than traditional sports bettors. In one large-scale study, 64.8% of esports bettors met diagnostic criteria for gambling disorder, compared with about 17% of conventional sports bettors.

These formats are engineered for engagement. Micro-bets, live-odds updates and push notifications deliver rapid feedback loops that stimulate dopamine release — the same neurochemical process behind pokie addiction. Combined with gaming streams and fantasy league communities, players are surrounded by social cues that reinforce gambling behaviours.

Why It’s Easy to Miss the Warning Signs

Many people who bet on esports or fantasy leagues don’t even realise they’re gambling. The platforms are designed to look like games, not casinos. Because bets often start small or use virtual credits, financial losses can accumulate quietly over time.

A study by Nower and colleagues found that daily fantasy sports participants reported higher rates of depression, anxiety and impulsivity than non-gamblers. The illusion of control — believing that skill and data can “beat the odds” — keeps players engaged even after repeated losses.

This problem is especially common among young men, who view these platforms as harmless hobbies or social activities. By the time financial strain or emotional distress becomes visible, the behaviour may already have escalated to a clinical gambling disorder.

The Psychology Behind It

At its core, gambling addiction isn’t about greed — it’s about brain chemistry. Every near-miss or small win releases dopamine, producing temporary relief and excitement. Over time, the brain learns to crave that rush, driving cycles of chasing losses, secrecy and emotional fatigue.

The WHO’s International Classification of Diseases (ICD-11) recognises gambling disorder as a behavioural addiction — marked by loss of control, prioritising gambling over other activities, and continuing despite harm. With esports and fantasy sports, those dynamics are amplified by constant access and gamified reward systems.

Treatment and Recovery at HARP

At HARP, we’re seeing more clients whose gambling addiction began online — often through esports or fantasy platforms. They’re usually bright, tech-savvy and unaware of how deeply the issue runs until anxiety, debt or relationship breakdowns occur.

Our treatment model combines Cognitive Behavioural Therapy (CBT), motivational interviewing and mindfulness-based relapse prevention — interventions recommended by the National Institute on Alcohol Abuse and Alcoholism (NIAAA) and Australia’s national harm-minimisation framework.

We help clients:

  • Recognise distorted beliefs such as “I’m just better at picking winners.”
  • Understand how platform design manipulates engagement and reward cycles.
  • Build personalised relapse-prevention plans around esports tournaments or fantasy league seasons.

HARP’s holistic programs include digital detox protocols, family education, and integrated mental health care to address co-occurring issues like anxiety or depression. Each program is confidential, medically supervised, and designed for genuine recovery — not just symptom control.

Check Your Signs Carefully

Esports and fantasy sports may seem like harmless entertainment, but for many Australians, they represent a new frontier of gambling harm. Recognising early signs — preoccupation, chasing losses, hiding activity or emotional swings tied to results — can make all the difference.

If you or someone you care about is struggling with gambling, whether online or offline, HARP provides discreet, evidence-based support tailored to the realities of modern addiction. Get your professional help today!

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