Gambling debt is money you’ve borrowed to gamble or debts you’ve racked up because of gambling. This includes credit cards, loans, overdrafts, and payday loans used to fund gambling. Gambling debts are unsecured, which means they can be included in an IVA, Debt Relief Order, or Debt Management Plan.
If you owe money because of gambling, the first step is to stop gambling. Then deal with the debt using a formal debt solution if you owe £6,000+, or contact creditors directly if you owe less.
What Counts as Gambling Debt?#
Gambling debt isn’t just money you owe to bookies or online casinos. It’s any debt that exists because of gambling.
Most gambling happens on credit. You use credit cards, loans, or overdrafts to fund betting. When you lose, you’re left with debt to the lender, not the gambling company.
Common sources of gambling debt:
- Credit cards maxed out from ATM withdrawals at casinos or online deposits
- Personal loans taken out to clear gambling losses
- Payday loans used to fund more gambling
- Overdrafts repeatedly going into the red
- Money borrowed from friends or family
- Catalog or store credit used to free up cash for gambling
The gambling company itself rarely extends credit. Online sites usually require you to deposit money upfront. Physical casinos might offer credit facilities, but most gambling debt is owed to banks, lenders, and credit card companies.
Are Gambling Debts Legally Enforceable?#
Yes. If you borrowed money and used it to gamble, you still owe that money.
There’s a common myth that gambling debts aren’t enforceable. That’s not true in the UK. While debts from illegal gambling (unlicensed operators) might not be enforceable, debts to legitimate lenders are fully enforceable.
If you used a credit card to deposit £5,000 into an online betting account and lost it all, you owe the credit card company £5,000. They can take the same enforcement action as for any other debt: defaults on your credit file, debt collectors, court action, and CCJs.
The only exception is if the lender knowingly gave you credit specifically to gamble when they knew you were addicted. This is rare and hard to prove.
Can Gambling Debt Be Included in an IVA?#
Yes. All unsecured gambling-related debt can be included in an IVA.
If you owe £6,000+ across multiple debts (credit cards, loans, overdrafts) and you can’t afford to repay them in full, an IVA might be suitable.
Once your IVA is approved:
- All included debts are frozen (no more interest or charges)
- Creditors must stop contacting you
- You make one affordable monthly payment
- After 5-6 years, any remaining debt is written off
For example:
- You owe £15,000 across four credit cards and two loans
- All the debt came from gambling
- You enter an IVA and pay £200/month for 5 years
- Total paid: £12,000
- Remaining £3,000 is written off
Check if you qualify using our free IVA calculator.
Can Gambling Debt Be Included in a Debt Relief Order?#
Yes, if you meet the eligibility criteria.
A DRO is suitable if you have:
- Less than £50,000 total debt
- Less than £75/month spare income after essential expenses
- Less than £2,000 worth of assets (including vehicles)
A DRO lasts 12 months, then all included debts are written off. It’s free to apply (as of April 2024).
If your gambling debts pushed you into financial difficulty and you now have little income and no assets, a DRO might be the quickest way to get debt-free.
What If You Owe Less Than £6,000?#
If your gambling debt is under £6,000, you won’t qualify for an IVA. But you still have options.
Debt Management Plan#
A DMP is an informal agreement where you pay creditors reduced monthly payments based on what you can afford.
You work with a debt charity (like StepChange or National Debtline) to set up the plan. They contact your creditors and ask them to freeze interest and accept lower payments.
Pros:
- Affordable monthly payment
- Most creditors freeze interest
- Free if you use a debt charity
- Flexible if circumstances change
Cons:
- Takes longer to repay (often 5-10 years)
- Not legally binding (creditors can withdraw)
- Damages your credit rating
- You must repay every penny (no debt write-off)
Contact Creditors Directly#
If you have one or two debts and can afford to pay them off over time, contact your creditors directly.
Explain your situation. Many lenders have policies to support customers with gambling addiction. They might:
- Freeze interest and charges
- Reduce monthly payments temporarily
- Offer a payment plan to clear the debt over 12-24 months
- Accept a reduced settlement if you can pay a lump sum
Get everything in writing before you agree to anything.
How to Stop Gambling First#
You can’t clear gambling debt while you’re still gambling. Every debt solution requires you to stop.
If you’re struggling to stop on your own, get help from organisations that specialise in gambling addiction:
Gamblers Anonymous: Free support groups across the UK. Peer support from people who’ve been through it. Visit gamblersanonymous.org.uk
National Gambling Helpline: Free, confidential advice available 24/7. Call 0808 8020 133 or visit begambleaware.org
GamCare: Free counselling, support groups, and practical advice. Visit gamcare.org.uk
GAMSTOP: Self-exclusion service. Sign up and you’ll be blocked from all UK-licensed online gambling sites for 6 months to 5 years. Visit gamstop.co.uk
You can also self-exclude directly from betting shops and casinos. Walk in, tell them you want to self-exclude, and they’ll ban you from entering.
If you’re gambling online, install blocking software like Gamban or BetBlocker to prevent access to gambling websites.
What Creditors Can Do About Gambling Debt#
Creditors treat gambling debt the same as any other unsecured debt. They don’t care what you spent the money on.
If you stop paying:
Months 1-3: Reminder letters and calls
You’ll receive letters and phone calls chasing payment. Late payment fees are added to your balance.
Months 3-6: Default notice
The creditor sends a default notice warning they’ll close your account and register a default on your credit file if you don’t pay.
Once the default is registered, it stays on your credit file for 6 years, making it hard to get credit, mortgages, or pass tenant checks.
Months 6+: Debt collectors or court action
The creditor might pass your debt to debt collectors like Lowell or Cabot. Or they might take you to court for a CCJ.
If they get a CCJ and you still don’t pay, they can enforce it through:
- Attachment of earnings (money taken from your wages)
- Bailiffs visiting to seize goods
- Charging orders (securing the debt against your property)
Don’t ignore gambling debt. It doesn’t go away, and it gets worse the longer you leave it.
Prioritise Essential Debts First#
If you’re juggling multiple debts and can’t afford to pay them all, prioritise the essentials.
Gambling debts (credit cards, loans, overdrafts) are non-priority debts. Missing payments damages your credit score, but it won’t leave you homeless or without heating.
Priority debts to pay first:
- Rent or mortgage
- Council tax
- Energy bills (gas and electric)
- Water bills
- Court fines
- TV licence (if you’ve been prosecuted)
- Child maintenance
If you have to choose between paying your credit card or paying your rent, always pay the rent.
Once you’ve covered priority debts, use what’s left to deal with gambling debts through a debt solution or payment plan.
What If You’ve Borrowed from Family or Friends?#
Debts to family and friends can’t usually be included in formal debt solutions like IVAs or DROs.
If you borrowed money from loved ones to gamble, you’ll need to deal with those debts separately.
Options:
- Explain your situation honestly and ask for patience while you get your finances sorted
- Offer to repay small amounts once you’ve dealt with priority debts
- Consider putting the agreement in writing so everyone knows what to expect
Family and friends can’t take you to court or damage your credit score, but those relationships are often more valuable than any formal debt. Be honest about your situation.
Early Warning Signs of Problem Gambling#
If you’re not sure whether your gambling is a problem, ask yourself:
- Do you regularly spend more than you can afford on gambling?
- Have you used credit cards, loans, or overdrafts to fund gambling?
- Do you gamble to win back losses (“chasing losses”)?
- Have you lied to family or friends about how much you gamble?
- Do you feel anxious or irritable when you try to stop gambling?
- Has gambling affected your relationships, job, or mental health?
- Do you prioritise gambling over paying bills or essential expenses?
If you answered yes to any of these, you might have a gambling problem. Get help now before the debt gets worse.
If you’re struggling with debt and want to find out what options are available, use our free IVA calculator to see if you qualify and how much debt you could write off. It takes 2 minutes and won’t affect your credit score.
Frequently Asked Questions#
Can I get an IVA if my debt is from gambling?#
Yes. IVAs don’t discriminate based on how you got into debt. If you owe £6,000+ in unsecured debt (credit cards, loans, overdrafts) and can’t afford to repay in full, an IVA might be suitable, regardless of whether the debt came from gambling.
Will my creditors find out the debt was from gambling?#
Not necessarily. When you apply for an IVA, you list your creditors and how much you owe, but you don’t have to explain what you spent the money on. Creditors care about getting repaid, not how the debt was created.
What if I’m still gambling?#
You need to stop gambling before entering a formal debt solution. IVAs and other arrangements require you to demonstrate responsible financial management. If you’re still gambling, your Insolvency Practitioner won’t approve the proposal, and creditors won’t accept it.
Can gambling companies take me to court?#
Most gambling happens on a deposit basis (you pay upfront), so you don’t owe money to the gambling company itself. But if a casino extended you credit and you didn’t repay, they can take you to court like any other creditor. This is rare.
Is gambling debt different from other debt?#
Legally, no. Gambling debt from legitimate sources (credit cards, loans, overdrafts) is treated exactly the same as any other unsecured debt. The same enforcement rules apply, and the same debt solutions are available.
Can I include debt from illegal gambling in an IVA?#
Debts from unlicensed or illegal gambling operators aren’t legally enforceable in the UK, so there’s nothing to include in an IVA. But if you used a credit card or loan to fund illegal gambling and now owe the lender, that debt is still enforceable.
If you’re struggling with gambling debt and other debts, use our free IVA calculator to see if you qualify and how much debt you could write off. It takes 2 minutes and won’t affect your credit score.