Gambling with debt
If I won lotto I’d be sweet.
We’ve all had that wishful moment when we hope Lady Luck will smile upon us and make us rich, but chances are she is unlikely to fix your financial problems. Gambling can be fun for some people but it is not a good strategy for reducing debt or increasing your bank balance.
It was anticipated that Covid lockdowns and financial challenges would reduce pokie machine gambling in New Zealand however, the opposite occurred. In the last three months of 2020 New Zealanders broke a pokie gambling record, spending $252 million, which was the highest amount pushed into the machines since records began in 2007.
If someone is spending more than they can afford to lose and they are obsessed with gambling – they could have a problem.
What to do if you have debt problems and can’t stop gambling
Some signs of a gambling problem are when bills and debts are mounting, you earn money but there is nothing in the bank and you use gambling to try to win back your losses.
The recently published New Zealand National Gambling Study, identified that “overall, the transition into risky gambling was the most likely to be associated with maintaining or starting several negative health and lifestyle factors.” The study conducted by AUT Gambling and Addictions Research Centre collected data throughout four years and assessed “how changes in gambling risk levels are associated with changes over time in health, wellbeing, disability, deprivation and social connectedness.”
The Problem Gambling Foundation (PGF) has a useful and comprehensive description of signs of harmful gambling and how to get help. The organisation is experienced in supporting people who want to address their gambling behaviour and Debtfix recommends you contact PGF for guidance.
If you don’t know where to start with repaying bills and debts, or what your rights and responsibilities are with financial matters, Debtfix is here to help. The first step is always to start talking honestly about your debt situation, which might feel very awkward, but the Debtfix Crew is not here to judge.
We need to know the full details of your outstanding debts, regular bills, income and living expenses. Then we can plan the best way for you to manage your debts that supports you, your whānau and the organisations you owe money to.
There are numerous ways to get out of debt and you can look at your options here. It is important you consult with a debt specialist rather than trying to go it alone or getting bad advice from someone who does not understand New Zealand’s insolvency law.
Bankruptcy is not an easy option and should be your last resort.
A creditor (an organisation you owe money to) can apply to the court for your bankruptcy but you can defend this, and the Debtfix Crew can help you.
How does my gambling debt affect others?
Difficulties with debt caused by gambling can affect your whānau, friends, employers and business partners, and any debt problems you encounter will impact anyone included in the loan contract. The most important factor is, whose name is in the contract? For example, if you and your partner have jointly taken a loan with the bank, then both of you are liable for repaying the loan – even if the loan was solely for your use.
If you are unable to make the loan repayments the bank will require repayments from your partner, even if you split up. The same applies for a hire purchase agreement in both names, a joint credit card, a power account in several people’s names, a mortgage and even a mobile phone contract in both names. The only debts that are not the joint responsibility of your partner’s are those where the contract is solely in your name.
If you have your own business your personal debts and business debts can both be impacted by problem gambling. When you default on personal loans, you will find it difficult to borrow or get credit for your business, which can make it impossible to open accounts with essential suppliers.
If you work for someone else your financial situation can cause two problems. First, you could lose your job if you are spending more time and energy gambling rather than working and second, your employer may not trust you to handle money.
What to do if you are worried about someone’s gambling
To be honest, you can’t do much about someone else’s gambling but you can be supportive, get informed and take steps to look after yourself and your money. It may feel awkward but you will have to talk to the person, which will be easier if you take a positive, forward-thinking approach and offer your support. Give them hope that there is a way towards a better future and let them know you care about them.
About money – don’t give or lend them money and if you are affected by the financial situation get independent help. Where possible you should take control of the finances and have a full understanding of the situation. It is a good idea to have separate bank accounts and consider setting a budget for the person you care about, so they retain some control of their money.
If you don’t know where to start the FREE budgeting services at MoneyTalks will support you and guide you towards managing your money. If debts are worrying you, talk to a Debtfix Navigator and they will determine what you are liable for and develop a repayment plan with you.
Stay in touch with friends you can trust, look for information about gambling to help you understand how it is affecting the person you care about and be kind to yourself. You are not the cause of someone’s problem gambling and you are not responsible for fixing it.
Apply for a Self-Exclusion Order
Self-exclusion orders within the Gambling Act provide gamblers who feel they are experiencing gambling-related difficulties with the option to exclude themselves from a gambling area of a particular venue or several venues. A venue can issue an exclusion order that prevents a problem gambler from gambling areas and a third party, such as family or friends can also request an exclusion order.
The order requires specific gambling venues to proactively support the person with problem gambling information and tell them where they can get help.
Don’t be fooled by pokies for community charities
“In 2019, over $939 million was lost on pokie machines in Aotearoa and approximately $241 million was paid out in grants to community and sports groups,” said the Problem Gambling Foundation, February 2021.
Only 40 per cent of proceeds from the money people push into pokie machines is legally required to go back to the communities where they are located. However, in response to Covid the threshold was scrapped for two years to allow gaming trusts to boost their cash reserves.
Throughout 2020 overall gambling profits were down by $128m due to restricted access to pubs, clubs and casinos. However, the Department of Internal Affairs (DIA) reported the spend on pokies from October to December 2020 was a record-breaker.
The DIA anticipated Covid would cause an impact but it was surprised by the vigorous bounce-back when the pokie restrictions eased.
Lotto is gambling
We all see the adverts for Lotto contributing to fantastic community projects but the game of chance is still gambling and can be a problem for some people. During 2020, New Zealanders spent $631m on Lotto – an increase of 13 percent probably caused by an increase in online gambling for Lotto due to lockdowns.
If you don’t have financial problems and enjoy the fun of casinos, pokie machines or Lotto – go for your life but if you really want to help charities the best way to do so is by donating directly to them.
Don’t be fooled by the giving to charity disguise.
Support services for problem gambling
Debtfix and budgeting services can help you to take back control of your money matters and we recommend you seek specialist help from gambling help lines to take control of your future.
Problem Gambling Foundation has experienced financial counsellors trained to work with you 24/7 around gambling problems and gambling debt. They provide specialist gambling debt crisis counselling for gamblers, their partners, family and others.
Their free national phone number is available all day every day: 0800 654 658.
Choice not chance has a free 24/7 helpline 0800 654 655 or free text 8006
Ministry of Health gambling services has several contacts to help with ambling problems.