Experts Warn Online Gambling May Be Driving Rise in Bankruptcies

(AsiaGameHub) –   Bankruptcy lawyers have cautioned that internet wagering might be driving up personal insolvency rates, noting that individuals betting with funds they don’t own face particularly high dangers.

USA Saw a Rise in Personal Bankruptcy Filings

Online gambling has swept across the United States, accompanied by the launch of digital casinos in several states. As the gaming industry expands, skeptics stay concerned about its impact on society at large. A major worry is the financial damage inflicted on those battling addiction.

These worries intensified a few years back following a US government report showing an 11.9% year-on-year jump in non-business bankruptcies, totaling approximately 565,890 for the 2025-26 fiscal year.

Although multiple economic factors contribute to the general surge in bankruptcy filings, some observers argue that online sports betting has been a major contributor.

Experts Anticipate the Situation Will Deteriorate

Florida bankruptcy lawyer Chad Van Horn discussed the issue with Business Insider , stating that online gaming appears to negatively impact vulnerable groups, particularly younger men, who are considered a higher-risk demographic.

Poet Larsen, a researcher on the topic, noted that those hurt by betting are frequently individuals who were already facing financial difficulties prior to the legalization of online wagering in their jurisdictions.

Compounding the issue, many high-risk gamblers use borrowed funds rather than cash. Van Horn observed credit card balances skyrocket from nothing to five-figure amounts almost overnight.

This sentiment was shared by North Carolina bankruptcy attorney Ed Boltz, who noted that online gaming has resulted in more people accumulating five-figure debts on their credit cards.

Van Horn and fellow experts concurred that the accessibility of online betting, the rise of micro-betting markets, and the surge in prediction market popularity have further complicated the landscape.

Regrettably, both Van Horn and Boltz predict a rise in gambling-linked bankruptcies in the coming months. Boltz described the rate at which individuals accumulate gambling debt as “astonishing.”