How To Get out of Gambling Debt

The surest bet in gambling is that there’s no such thing as a sure bet.

As casino gambling, online wagering and sports betting become more and more fixtures on the American landscape, research into attitudes about gambling and the subsequent risks of incurring debilitating debt lags behind.

The most recent National Survey on Gambling Attitudes and Gambling Experiences was conducted in 2021. Since then, the legal sports betting market debuted in five more states, an expansion that drove revenue up 46% over 2022.

The survey findings show a substantial increase in risky behavior, notably in the number of respondents who say that gambling is not just an entertainment pastime but a good way to make money. (Spoiler, it is not.)

If that describes you or a loved one there are ways to get out of gambling debt that involve less risk and promise more success than wagering on a big windfall at the blackjack table or letting it all ride on your favorite football team giving points to an overmatched opponent.

Gambling debt is more than just the money placed – and lost – on bets. It’s also credit card and other debt that amasses because of gambling. The amount the average gambler owes isn’t so much the problem as the havoc the debt causes.

Lost savings, debt problems and bankruptcy are among the most common issues.

“Gambling addiction is destructive, and mounting debt can increase significantly every day that you wait to reach out for help,” Alexander Korsager, Chief Gambling Officer at Casino.org, said.

“You’ve started dealing with it the second you (admit it) out loud to somebody else. You will need to limit your access to cash and gambling platforms to avoid the hole getting any bigger, and this usually requires confiding in somebody else – you can’t recover alone.”

That’s only half the battle. Those looking for a way out of gambling debt face a dual challenge: tackling the issue of the gambling problem, and then the debt that so often needs to be addressed through solutions such as debt consolidation, debt management, balance transfer or even bankruptcy.

Gambling Debt Is on the Rise

In 2024, 38 states offer legalized sports betting in some form, 30 of them having legalized online betting.

Yes, there’s an app for that, too.

In fact, experts predict by decade’s end 90% of sports betting will be done by mobile app.

Virtually every state has introduced a bill legalizing sports betting in some form since the 2018 U.S. Supreme Court ruling that struck down a federal ban. Sports betting has become legitimized as every major sports league partners with betting companies – all while cautioning participants to get help if they believe they have a gambling problem.

The ease of gambling online has led to an explosion of gambling debt and related issues among college students beyond the annual March Madness brackets. Signs for parents or guardians that a college student may need help are frequent and unexplained missed classes, a sudden drop in grades, preoccupation with gambling and withdrawal from friends and family. CollegeGambling.org provides support for anyone who fears they may have a problem.

It’s no surprise commercial gaming revenue reached a record $66.66 billion in 2023, 10.3% higher than 2022, with 30 of 36 states setting records.

It also follows logically that where there are great revenue gains on one side, significant losses follow on the other side, and those losses become a debt avalanche often triggered by high interest rates that can wreak ruin on individuals and families.

Korsager’s advice for those dealing with gambling debt:

“You need to take stock of how much gambling debt you have and begin a plan towards paying it down (and not increasing it further),” he said. “But none of this will ever be possible without dealing with the actual addiction itself.”

Breaking Free from Gambling Debt

Author Katerina Gadzeva has co-authored articles with Anders Bergman, the founder of QuitGamble.com, for readers who may need help controlling their gambling.

They address gambling’s root causes and treatments in an effort to help people prevent, or at least manage gambling debt.

Since gambling often starts as harmless fun, the progressive nature of a gambling addiction may not be recognized until serious consequences, both medical and financial, take their toll on people’s every-day lives.

Gadzeva recommends a self-assessment test to give people with gambling issues an idea of the challenge they face.

“The second step should be to discuss your problem with a close friend or a family member,” she said. “Seeking professional help should come immediately afterward.”

The road to recovery begins with acknowledging the problem, seeking professional help and creating a debt repayment plan.

1. Acknowledge the Problem

Getting rid of gambling debt is impossible unless individuals stop making bets. There’s a reason the “house always wins” adage has stood the test of time, whether the house is a casino or a sports betting site.

Getting help with a problem begins only when you admit you have one. Just know that once you do, many online gambling sites have functions that allow you to block yourself for an extended period of time.

Often gamblers fail to hold themselves accountable unless they admit a problem to a friend or loved one. Experts point to the relief individuals feel when they realize their recovery need not happen in isolation.

Telling a loved one can be the beginning of family therapy. Admitting a problem within your social circle can separate your true friends from your enablers.

2. Create a Debt Repayment Plan

Once you’ve acknowledged a gambling problem, you next need to acknowledge the size of your debt. This can be just as daunting as admitting you have a gambling problem.

But there are steps that can help you simultaneously deal with an addiction while managing the financial fallout caused by it.

• Do the math on your total debt. Be honest about how much you owe, not just what’s required to make monthly minimum payments on your credit cards.
• Track your expenses. Making a budget is critical to holding yourself accountable. Draw a hard line between things you need versus things you want.
• Be flexible. Establish an emergency fund, even if it’s a few dollars a week, to help with unforeseen expenses.
• Prioritize your debts. Financial advisors often recommend the debt avalanche method because it begins with paying off your highest interest debt and saves the most money.

Another method is a snowball approach that pays off the smallest balances first and helps debtors gain confidence and momentum toward paying off their debts.

You can devise a repayment plan yourself or better yet consult a nonprofit credit counselor who can explain options. Here are some of the best options for dealing with gambling debt:

• Debt Management Plan — DMPs with nonprofit accredited credit counseling agencies like InCharge Debt Solutions lower interest on credit card debt. They require a fixed monthly payment and take 3-5 years to eliminate debt.
• Debt Consolidation — Combining all of your debt into one low-interest loan can reduce the interest and give you one fixed monthly payment. A credit score below 670 may make it tough to find a loan with a low enough interest rate to make it worthwhile.
• Credit Card Debt Forgiveness — Some nonprofit credit counseling agencies have agreements with a select group of card companies that allow the consumer to pay 50%-60% of the balance owed in fixed payments over 36 months, with the rest forgiven.
• Debt Settlement — This is the traditional “pay less than what you owe” program. You make monthly payments to the debt settlement agency that negotiates a lump-sum payoff amount with your creditors. No payments are made to creditors while the lump-sum amount is being accumulated, which will hurt your credit score. The settlement also appears on your credit report for seven years. The fees for many plans may negate some of the savings.
• Bankruptcy — Filing for bankruptcy should be the last-ditch option when your debt becomes unmanageable. Bankruptcy will eliminate unsecured debt, but also has long-term financial impact, including a big hit to your credit score and difficulty getting loans for 7-10 years.

3. Seek Professional Help

Meeting with a financial advisor or a free consultation with a credit counselor can provide the multi-pronged plan you’ll likely need to reset your financial priorities while dealing with the root causes of a gambling problem.

Admitting a problem is a great first step, but it’s also critical to seek professional help for that problem. Nonprofit credit counselors work with your creditors to lower interest rates and monthly payments, for instance, allowing you to make one monthly payment that’s lower than the combination of your current payments.

Gadzeva believes nonprofit credit counseling is “definitely a start” and first recommends seeking financial backup from immediate friends or family if possible as a way to ease gamble-related money problems without falling back on credit cards and loans.

The National Council on Problem Gambling has tips and resources on its confidential 24-hour helpline for problem gamblers or their family members at 1-800-522-4700. Gamblers Anonymous also provides help for both those who have a gambling problem and those affected by someone else’s gambling problem.

“I am a massive advocate for Gamblers Anonymous,” Korsager said. “They have meetings that can be done in person or online, and you won’t find anybody better qualified to provide advice on how to start your journey to recovery than those who are doing it. If attending meetings is too much too soon, you can have a judgment-free conversation with the National Problem Gambling Helpline (1-800-GAMBLER) to start your journey to recovery.”

Signs You Need Help for Gambling

Some of common signs of a compulsive gambling problem are:

• Moving or shifting money between accounts to hide gambling activity.
• Betting progressively larger amounts to compensate for losses, what Korsager calls “chasing losses.”
• Selling possessions to get more money for gambling.
• Gambling — or the thought of placing a bet — dominates your thinking.
• Turning to gambling when you’re stressed out or anxious.
• Getting irritable or angry when you can’t gamble.
• Lying about money lost or time spent gambling.
• Inability to stop or limit gambling.
• Borrowing money from others to gamble with, as well as lying about why you need the money.
• Stealing from a spouse or child to gamble.
• Not paying bills on time.
• Maxing out credit cards because of gambling.
• Taking out loans to cover expenses, and gambling.
• Committing a crime to get money to gamble.

“If a day cannot go by without you considering spending money on gambling, then you definitely have a problem,” Gadzeva said. “Your unwillingness to address such issues or voice your concerns with your loved ones is also something that will signal you have a major problem with gambling that can lead to addiction.”

How to Protect Your Finances from a Gambler in the Family

Gambling addiction affects those close to the gambler in myriad ways, including financially. Those looking to help someone with a gambling addiction can get help from support groups like Gam-Anon, which is affiliated with Gamblers Anonymous.

Specific steps include:

• No Joint Accounts: Spouses or partners of problem gamblers should have separate bank accounts, credit cards and personal identification numbers.
• Monitor the Mail: Those living with a gambler should gather and monitor mail and immediately dispose of credit card or loan offers.
• Open a Safety Deposit Box: Jewelry, family heirlooms and other valuables should be stored securely away from home.
• Never Co-sign a Loan: Co-signing makes you responsible if the borrower can’t pay.
• Tell Others Not to Lend Money: Make close friends and other family members aware of the situation, so they aren’t taken advantage of.
• Pay the Bills: Don’t allow the problem gambler to take control of the household bills.

Address the Root Cause: Dealing with Gambling Addiction

You can have the best intentions and get professional advice on how to repay debt through a debt management plan or some other avenue but if you don’t deal with the root causes of your gambling addiction, you’re fighting the battle with one arm tied behind your back.

Mounting debt requires a detailed plan but the impulse that drives gambling addictions overrides the best laid strategies. It’s important to understand how addiction develops, including the psychological triggers and environmental factors that often ruin relationships.

Some of the common triggers are:

• Stress: This can occur in the workplace as responsibilities mount or job descriptions change. Or through the emotional upheaval of a divorce or death of a loved one.
• Drug and alcohol use: Sometimes (not always) people prone to one addiction transfer risky behavior to another.
• Loneliness: Online gambling is just a click away.
• Retirement: People who suddenly find they have a lot of time on their hands might look for a hobby. Gambling is one that often begins innocently enough and snowballs.
• Your social circle: You may have friends who like to go to the casino or routinely participate in sports betting. What might be harmless fun for some could develop into an addiction for someone else.

Recognizing and admitting you have a problem is an important start. Investigating treatment options such as therapy, support groups or in-patient programs is critical in dealing with an addiction.

Needing help doesn’t mean you’re weak. It means you’re committed to getting your life straight.

“I greatly believe in the 12-step program (Gambler’s Anonymous),” said Korsager, who cites existing research that shows those who enter a 12-step program have abstinence rates often double that of people who don’t go through a 12-step program such as Gambler’s Anonymous or AA.

“The truth is that by the time you attend a gambler’s anonymous meeting, you are actively admitting you have an issue and are seeking help,” he said. “This can be a HUGE step for any addict, and so there is no shame in starting by reaching out to charities and helplines first.”

Rebuilding Your Life

Avoiding known triggers is essential for people overcoming any addiction. Developing new hobbies and activities to replace gambling is a proven avenue in changing habits that can go a long way to recovery, both emotionally and financially.

Creating a daily routine that introduces structure where impulse once reigned could include exercise, meditation or other activities that not only help fill the day but might offer health or financial benefits. A second job, for instance, could bring in some extra money to put toward paying off debt.

You didn’t just wake up with a gambling addiction one morning. And a gambling addiction isn’t likely to disappear the minute you walk through the door of a GA meeting or admit the problem to a loved one.

“I would suggest doing several things at once to effectively combat the problem,” said Gadzeva, who recommends responsible gaming tips that can be found at SilentBet.com. “First off, becoming part of Gambler’s Anonymous is great but it will not have (immediate) effects from Day One.

“In the meantime, securing your finances via the responsible gambling tools most casinos offer will be a step in the right direction. Set up reality checks, wager and loss limits, deposit limits, etc.”

Keeping a journal is another recommended way for people to hold themselves accountable and chart their progress. Recovering from a gambling problem is a challenge, sometimes the biggest challenge of a lifetime.

That’s good enough reason to celebrate milestones and forgive setbacks along the way.

Moving Forward from Gambling

Nothing builds self-confidence as much as introducing discipline back into a life where it was lacking, or completely non-existent.

Every day that passes where you don’t gamble and where you address your debt through a structured repayment plan builds discipline and will eventually make the next day easier. And the next week, month and year.

You can try to go it alone, but that approach is shorter on accountability and far bigger on risk. We all tell ourselves things we want to hear that we know deep down is not in our best interest.

Getting a second opinion isn’t just a good strategy for a serious medical diagnosis.

So don’t be afraid to reach out for professional assistance, whether it’s financial counseling or treatment for a gambling problem.

In the long and challenging road out of debt, you owe that much to yourself.