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I'm trying to create multiplayer game using BTC to make bets. I have server and I am using PHP to let users create an account. How would I write a script where when a new user creates an account the server also makes a new wallet for them where they can deposit, withdraw and use that wallet's balance to play games using BTC.

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I'd advise caution, it is quite difficult to secure web wallets. What you are asking is pretty basic, when a new user registers you call your server (ie bitcoind) to create a new address, then assign that address to that userid in your database. Withdrawal would just be a call to send transaction. There's no script that will do this for you, it needs to be done from scratch.

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