It has always been easy to lose sight of how much money is being lost while gambling. A big win always seems just within reach, so the game is very seductive. The rise of the internet, however, has made it almost effortless--now, you don't even have to leave the comfort of your home to rack up a huge amount of debt in a small amount of time.
When I first got into bankruptcy law, I thought I would see a lot of clients with problems relating to substance abuse. Instead, it was far more common for clients to tell me that gambling debt was their main reason for filing bankruptcy. For example, I once had a sixty-year-old client ready to retire. Within the span of a year, she mortgaged her home with a second and then third loan and cashed out her retirement to use the money for gambling. When she finally walked into my office, she was penniless.
Even famous people who have made a lot of money, like former NBA athlete Antoine Walker, have fallen prey to the seduction of gambling. Although Mr. Walker's impressive earnings totaled more than $110 million over 12 years, his petition to file for Chapter 7 asset protection with the Southern Florida Bankruptcy Court listed debts owned to various casinos of over a million dollars each. [Source: Consumer Bankruptcy News]
The bankruptcy courts are not always sympathetic to gambling debt. If someone takes out money on their credit card to use for gambling and files for bankruptcy a few months later, the debt can be seen as fraudulent. Some courts have treated casino markers as bad checks and have ruled that debt as non-dischargeable (unable to get rid of in bankruptcy). In cases like these, it helps to have a very experienced attorney.
