Online Gambling and Debt

The Rise of Online Gambling

Online gambling has become increasingly popular in recent years. Between sports betting and online casinos, it’s now easier than ever to gamble directly from your smartphone. A few dollars here and there may not seem like much, but that money can add up quickly.

If you’ve found yourself refreshing your betting app instead of your budget, you’re not alone. But spotting the red flags—and knowing your options—can make a difference.

Online Gambling and Debt

Gambling has always been a dangerous hobby that can quickly lead to large amounts of debt. 60% of US credit card borrowers carry debt month to month, and gambling can complicate the path to repayment.

Online gambling is even more dangerous because of its accessibility. You don’t have to travel to a casino or pull cash out of an ATM. You can gamble straight from your couch, pulling money digitally from your account or credit card, so it’s less noticeable right away.

The combination of anonymity and ease can lead to a slippery slope of mountains of debt.

Warning Signs

Online gambling isn’t always a problem, as long as it stays a casual hobby. Spotting the warning signs can help you identify when it may become a financial problem.

1. Relying on credit cards or loans to gamble
   • If you’re borrowing money to gamble, that most likely means that you do not have that money in your account to pay for your bets. Gambling debt can spiral out of control due to high interest rates, leaving you paying far more than you ever won.
2. Chasing losses with more gambling
   • After a loss, attempting to "win back" money frequently results in further losses. One of the most typical indicators of problem gambling is this pattern of chasing losses, which can drain your savings or lead to significant debt.
3. Hiding gambling expenses or lying about losses
   • You may already be aware that gambling is putting a burden on your finances if you find yourself hiding your gaming activity from friends or family or downplaying how much you've spent.
4. Skipping daily essentials to fund gambling
   • If your gambling budget becomes more of a priority to you than your bills, rent, or utilities, it’s a sign that the behavior is interfering with financial stability.

How to Protect Your Money

If you’re worried that gambling has become a financial problem, there are steps you can take to protect your finances and regain control.

• Set clear spending limits
  • Create a budget that has strict limits on how much you can spend on gambling. Hold yourself accountable to this amount. Once it’s gone, the game is over. Setting limits creates structure and helps you avoid overspending.
• Block gambling transactions
  • Many financial institutions now offer tools to block gambling-related transactions. Enabling these safeguards can protect your money from financial setbacks, making it easier to stay on track with your financial goals.
• Track every dollar you spend
  • Gambling losses add up much more quickly than people realize – especially when the bets are small and frequent. If you keep a detailed log of each bet, it can open your eyes to how much you are really spending in total.

• Consider professional debt support

  • If none of these steps seems to work, consider getting professional help. Our loan officers at Education First can sit down with you to help create a personalized budget. Our partner, GreenPath, also offers a Debt Management Program that can help lower your monthly payments, reduce high interest rates, and provide a realistic path to becoming debt-free.