Problem Gambling Part 1: Financial Steps a Family

Can Take Today

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Welcome and Introductions

• You are not alone. • In a given year, an estimated 2

million U.S. adults meet the criteria for having a pathological gambling problem.

• Another 4 to 6 million people are considered “problem gamblers.”

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Workshop Objectives

• Define and recognize problem gambling.

• Find out how to restrict access to money and credit.

• Protect family money and assets.• Take control of finances.• Monitor the gambler’s behavior. • Find help. 

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Symptoms of Problem Gambling

• Increased preoccupation with gambling.

• A need to bet more money more frequently.

• Restlessness or irritability when attempting to stop.

• “Chasing” losses.• Loss of control.

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Recognizing Problem Gambling

• Missing school or work.• Feeling remorse.• Feeling an urge to continue after

losing—and after winning.• Gambling to pay debts or

obligations.• Gambling as escape.• Borrowing or stealing money to

gamble.

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Phases of Problem Gambling

• Winning• Losing

• Desperation• Hopelessness

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Consequences of Problem Gambling

• Average problem gambler debt for U.S. males: $55,000–$90,000

• Annual social cost of gambling-related addiction, bankruptcy, and crime: $7 billion

• Increase in domestic violence, child endangerment, and child abuse.

• Increase in nonviolent thefts.• Depression and thoughts of

suicide.

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What Can You Do?

• Take immediate steps to protect finances.

• Get help with financial and legal issues.

• Be aware that the gambler may resist help.

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Restricting Access to Money

• Remove the nongambler’s name from joint accounts.

• Open new accounts in the nongambler’s name only.

• Change the nongambler’s PINs.

• Set up an ACH debit block.

• Refuse to co-sign.

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Confronting a Problem Gambler

• Cutting off access to money may trigger hostile reactions.

• Think safety first.• Involve family,

counselors, clergy, etc.

• Provide support for both the gambler and the family in case of fallout.

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Limiting Access to Credit

• Shred credit card offers, loan offers, and convenience checks.

• Put a freeze on the nongambler’s credit report.

• Ask creditors to stop granting credit.

• Opt out of direct mail.• Put all phone numbers on the

National Do Not Call Registry.

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Preventing Access to Family Money

• Open a safe deposit box for valuables.

• Ask family members and friends not to give loans to the gambler.

• Retitle children’s financial accounts to prevent access by the gambler.

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Protecting Assets

• Review and safeguard:– Tax-deferred retirement accounts, such

as 401(k)s, 403(b)s, 457s, pensions, and IRAs.

– Investment accounts, including 529 plans, UGMA/UTMA accounts, and Coverdell IRAs.

– Life insurance and annuity policies.– Current or anticipated inheritances.– Access to home equity loans.– Access to prior gambling winnings.

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Shifting Control of Finances

• Take charge of all household finances.

• Review any loan repayment documents.

• Shift ownership of property into a nongambler’s name only (beware tax, legal, and creditor ramifications).

• Consider using trusts.• Get legal or financial

advice as necessary.

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Monitoring Behavior

• Establish email alerts from financial institutions and credit reporting agencies.

• Enable GPS tracking of the gambler’s cellphone.

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Finding Help

• Gamblers Anonymous and Gam-Anon• National Council on Problem Gambling• Financial planners• Tax advisors• Estate lawyers• Credit and debt counselors• Employee assistance programs

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Starting the Financial Recovery

• Three keys to recovery:1. Determine the amount of debt

and list creditors.2. Establish a debt repayment

plan.3. Use bankruptcy as a last resort.

• Web-based resources.– Smart About Money:

www.smartaboutmoney.org– Spendster: www.spendster.org

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Summary

• Define and recognize problem gambling.

• Find out how to restrict access to money and credit.

• Protect family money and assets.• Take control of finances.• Monitor the gambler’s behavior. • Find help. 

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