Caught in the odds: Understanding gambling debt and how to get help

With the rapid expansion of online casinos and sports betting, gambling has become more accessible—and more tempting—than ever. What used to require a trip to the casino now lives in your pocket. It’s no surprise that gambling related financial problems have climbed. Back in 2018, only 2% of Canadians were considered at risk for problem gambling. By 2024, that number jumped to 7%.

When money feels tight, the promise of a big win can feel like a shortcut to relief. Unfortunately, it often leads people deeper into financial trouble. Below are the most common questions we hear from people who are worried about gambling debt.

Why does gambling debt happen?

Gambling debt usually starts small. You might buy a few lottery tickets, place a couple of sports bets, or try out an online casino but it can snowball quickly, here’s why:

• Chasing wins (and losses): The highs of gambling can be addictive, and the lows can be crushing. After a win, people often believe they’re “on a roll,” even though the odds haven’t changed. After a loss, the urge to win the money back can be just as strong. Both patterns can push people to gamble more than they intended.

• Easy access to credit: With credit cards, personal loans, and payday loans there are lots of ways to borrow money quickly in Canada. High interest debt makes it extremely hard to recover once you start relying on borrowed funds to gamble.

• Online gambling convenience: You no longer have to walk into a casino to lose money. Gambling apps and betting platforms offer 24/7 access. A few taps from your couch can turn into hundreds—or thousands—of dollars lost in minutes. Seeing your stack of chips going down isn’t the same as seeing numbers on a computer screen, which doesn’t seem as real as physical currency. This big psychological difference makes it a lot easier to suffer losses.

• Social connection: For some people, especially seniors, casinos offer routine and community. A visit might start as a social outing but can turn into a costly habit, especially for anyone living on a fixed income.

• Mental health factors: In the face of financial uncertainty, people are likely to turn to gambling to escape financial stress. Certain mental health conditions like depression, anxiety, ADHD, or those with a family history of addiction are also more likely to struggle.

What are the signs of gambling addiction?

According to The Centre for Addiction and Mental Health (CAMH), some key signs include:

• Frequently borrowing money or relying on credit to gamble

• Lying about how often you gamble or how much you spend

• Withdrawing from friends or family, or experiencing mood swings

• Stress related nausea or headaches

If you’re seeing these signs, support is available. CAMH and other mental health organizations offer additional mental health resources.

What to do if you have a gambling problem

Act early to prevent financial and emotional fallout. Here are steps that can help:

• Freeze access to credit: Lock your credit cards and lines of credit. Removing easy access to borrowed money helps break the gambling cycle.

• Have a money management partner: A trusted friend or family member can help monitor your spending or temporarily manage your finances while you get support.

• Use self-exclusion programs: Most provinces require casinos to offer self-exclusion programs where you can voluntarily ban yourself from entering a casino or using online gambling platforms.

• Delete accounts and unsubscribe: Remove gambling apps from your phone and unsubscribe from promotional emails. You may even want to install an app blocker to prevent yourself from redownloading apps.

• Build a support network: Addiction thrives in isolation. Being honest with people you trust can make recovery easier.

• Seek professional help: Gambling addiction often connects to deeper mental health challenges. Consider reaching out to a local or national non-profit for mental health support.

And if you’re already carrying gambling debt, a Licensed Insolvency Trustee (LIT) can help you understand your financial options—including legal debt relief.

How do you get rid of gambling debt?

Gambling debt can take many forms including credit cards, personal loans, payday loans, and even HELOCs. Start by reviewing your budget to identify where you can cut back—but remember, stopping gambling doesn’t magically erase existing debt or interest.

If you’ve cut your spending and still can’t keep up, insolvency options like a consumer proposal may be the best path. A proposal can reduce your debt, stop interest, and give you one affordable monthly payment.

Can you include gambling debt in a bankruptcy or consumer proposal?

Yes. In Canada, gambling debt is treated like any other unsecured debt, and you can include it in a bankruptcy or consumer proposal. What matters most is honesty. Your LIT is there to help you get a fresh start—not to judge. Being open about gambling struggles allows them to point you toward any additional support you may need. Book a free consultation with one of our debt solutions professionals to learn more about your options.

Does my partner need to know about my gambling debt?

Not necessarily. If your partner isn’t jointly responsible for your debts—like a shared mortgage or cosigned loan—they don’t automatically need to know about your insolvency proceeding.

But financial transparency can be an important part of recovery. Talking openly with your partner may help rebuild trust and strengthen your support system.

Gambling debt can feel overwhelming, but it’s possible to recover. If debt is weighing you down, a LIT can explain your options and help you take back control—without pressure and without judgment. Book a free consultation to get started.