Debt Issues Arising From Sports Betting Apps In Las Vegas?

Gambling, including placing bets on sporting events, is hardly a new phenomenon, especially in Las Vegas. Nevada has long been a haven for locals and tourists alike looking to blow off steam through legal gambling. But with the rise of mobile technology, sports bettors don’t have to leave their state or even their home to place wagers on all of their favorite teams. Apps like Draft Kings and FanDuel allow users to quickly and easily sign up and begin placing bets through their phones. Even some Vegas mainstays like Caesar’s and MGM offer sports betting app options to sports fans seeking that extra thrill. All it takes is one bad bet to start a domino effect and accrue debts that result in collection efforts by creditors. If you’re wondering if bankruptcy can alleviate these types of issues for you, review your situation with our team for free by scheduling your free consultation at (702) 842-0700.

How Much Money Do People Spend On Sports Betting?

It’s no secret that several sports fans are willing to spend a significant amount of energy and resources on supporting their favorite teams. Whether that’s going to home games, traveling to see the team on the road, buying merchandise, going to sports bars and other events, etc., sports ultimately encourage fans to spend their money. For someone who has the disposable income to afford this level of interest in sports, sports betting may seem like a natural extension of their hobby. For someone on a stricter budget, sports betting may seem like a simpler and more affordable way to be involved in sports fan communities.

Last year during the NFL season, approximately $27 billion was spent in the United States on mobile sports betting apps. As sports betting apps are up for legalization in Missouri and other states, some project that this year’s bets during the NFL season could be as high as $35 billion nationwide. These billions of dollars in bets are spread out over millions of customers, who most often are men in their 20’s and 30’s. These bets don’t have to be high to add up quickly. Most sports bettors gamble in transactions of less than $100. With one sports season rolling into another, collegiate leagues, and fantasy leagues, an unlucky sports bettor could quickly amass thousands of dollars in debt.

Debt Trends Following The Legalization Of Sports Betting Apps

The Supreme Court first issued a ruling in 2018 allowing legalized sports betting through mobile apps. Since then, about 30 states have legalized sports betting apps. In states that have legalized sports betting apps, there is a 28% greater likelihood of bankruptcy filings as compared to states that have not yet legalized sports betting apps. States that have legalized sports betting apps have also seen increases in consolidation loan defaults and secured debt defaults. Sports bettors tend to have lower credit, fewer investments, and engage more in the lottery. But legalization also allows states to tax sports betting, resulting millions of tax dollars that are put towards public benefits efforts like education. New York has a 51% tax rate on sports betting and brought in $862 million last year through taxes on sports betting. New Jersey has a lower tax rate, but has brought in $549 million since the legalization of sports betting in 2018.

Responsible Gambling To Avoid Debt

There are enough ways to accrue unmanageable in the United States without factoring sports betting through mobile apps. If you are interested in sports betting, or perhaps are already concerned about your participation in sports betting apps, it may be beneficial to learn about precautions to avoid gambling debt. Some tips to avoid or minimize debt from sports betting apps include:

Setting a reasonable budget for your sports betting: This may be weekly, monthly, or during a certain sport’s season. You can decide whether your budget includes continued betting if you win or if you should cash out after successful bets.
Creating gambling limits using apps on your phone: Many sports betting apps offer features for users to set limits on their own gambling. These can be useful if you struggle to stick with gambling boundaries you set for yourself.
Avoid placing bets while drinking alcohol: Alcohol reduces inhibitions, which can be fun- especially when combined with watching sporting events- but creates the risk that you might place bets that you would not have placed while sober. You might also feel social pressure to place higher bets if you are at an event like tailgating or a game watching party with your friends. If you’re concerned about sports betting debt, you should set a clear rule for yourself to not place sports bets in social settings.
Only gamble what you have and don’t withdraw from savings and investments: If you gamble on credit cards, you could face additional fees and exorbitant interest rates after losing bets. Many gamblers also make the mistake of being overconfident and withdrawing from retirement savings and other investment accounts to fund a wager. If you do engage in sports betting, stick to betting funds that are readily available in your checking account.

Can Bankruptcy Provide Debt Relief For Sports Bettors?

Bankruptcy provides massive benefits to people struggling with debt, but as one might expect, there are limitations in place to keep people from misusing bankruptcy. Sports betting is hardly a necessary expense, and generally isn’t an approved expenditure in a bankruptcy debtor’s budget. But this won’t, for the most part, have any bearing on the dischargeability of a sports betting debt. Fraud can give debt priority status, which usually means that it can’t be wiped away without repayment by a bankruptcy filing. But most gambling debts are considered good faith debts absent a showing of fraud. Bankruptcy can clear unsecured debts with non-priority status, which includes sports betting debts, including those acquired using credit cards. The debtor just needs to abide by limits on luxury purchases and cash advances for their credit cards in the applicable time periods before their bankruptcy filing.

How bankruptcy addresses gambling debts and other financial issues will largely depend on which chapter of bankruptcy the debtor files. If you are considering filing for bankruptcy in Las Vegas, the main types of bankruptcy you should consider first are chapter 7 and chapter 13. If your sports betting debts fall into the unsecured category, they should be eligible for discharge in both. In chapter 7, these debts are wiped out, and the debtor can also abandon secured assets that aren’t financially viable. It only takes a matter of months to clear unsecured debts in chapter 7 bankruptcy. The chapter 13 process is longer, and may require that unsecured debts be repaid, but can provide numerous benefits for a debtor seeking to protect assets they wish to keep.

If you want to file for bankruptcy in Las Vegas, you might only qualify for one or the other when it comes to chapter 7 and chapter 13 bankruptcy. Some qualify for both, and some may qualify for neither. Our Zero Down Bankruptcy Lawyers Of Nevada offers free case evaluations so you can determine which is best for you. To schedule your free consultation today, call (702) 842-0700.