Fantasy sports and online sports betting are big business. It is estimated that 56 million players participate in fantasy sports leagues, which generates an annual revenue of $1.5 billion. Chances are, you or someone you know is involved in fantasy sports.
By 2020, more than half of sports betting was done online with a credit card or online account through sites like, Bet365.com, DraftKings, FanDuel, and Caesars Sportsbook. Sports betting generated a record revenue of $1.5 billion in 2020 in the U.S according to the American Gaming Association. DraftKings’ revenue skyrocketed to $644 million in 2020, which is a 49 percent increase from the $432 million they earned in 2019.
Recently, we have seen a wave of clients struggling to deal with debt as a result of placing bets on these sites. Gambling debt is more than just the money placed – and lost – on bets. It is the credit card debt and personal loans that accrue because of the gambling.
Experts predict that by the end of the decade, 90% of sports betting will be done by mobile app. Gambling debt may be from using your credit cards to gamble, or from running them up to pay expenses as you spend more on gambling than you can afford.
A 2020 Science Digest study found that those with a gambling problem use credit cards to cover expenses as well as to keep gambling, and it becomes a spiral that increases debt, as well as anxiety.
Those looking for a way out of gambling debt must tackle both the issue of the gambling itself, and the debt accrued from the same.
Can Gambling Debt Be Discharged in Bankruptcy?
The question of whether you can discharge gambling debt, and debt accrued from fantasy sports sites like, DraftKings and FanDuel, in bankruptcy depends on when the gambling occurred. If the debt was accrued within 90 days before filing for bankruptcy, the debt is non-dischargeable, meaning you are on the hook for the debt after the case is over.
If you are struggling with gambling debt, it is highly likely you are struggling with other forms of debt, meaning the gambling debt you owe is only one of many other outstanding debts.
However, under the law, certain gambling debts are not dischargeable. If your gambling debt is more than $500 and was incurred within 90 days of you filing for bankruptcy, you are still on the hook for what is owed. In many cases we wait to file your case. Additionally, if you obtained a cash advance for more than $750 through a credit extension made within 70 days of filing for bankruptcy, these debts are also assumed to be fraudulent debts and are not allowed to be discharged.
The good news is that most gambling debts, along with credit card debt, personal loans, and cash advances can be easily discharged in bankruptcy.
If you have questions on this topic or are struggling with debt, call our law firm today to schedule a free consultation. Having debt makes you stay up at night. It stresses you out. It ruins relationships. I went through it. I found the courage to call a bankruptcy attorney and I pressed the restart button in 2008. I never forgot what it did for me and how it helped me start over. To date, The Benenati Law Firm has eliminated nearly a billion dollars of debt for its bankruptcy clients. Our firm is the largest filer of consumer bankruptcy cases in the nation. Go to https://www.407bankrupt.com/ or call 407-777-7777 to set up a free consultation.
Because Life Has a Restart Button.