GAMBLING DEBTS - The government is promoting plans to better regulate internet gambling

As the first international summit on the global impact of the industry opens, the government is promoting plans to better regulate internet gambling.  Culture Secretary Tessa Jowell says a regulated internet gambling industry would offer people better protection than outlawing the practice altogether.  One former addict tells how she went from never playing the lottery to losing £27,000 on a gaming site in just eight weeks.  “It is very easy to get into online gambling, before you know it you are just getting dratted down.  It is just one short click on the internet, the money can go so fast (source: http//news.bbc.co.uk/1/hi/uk/6101518.stm 31.10.06).

Four of a kind, full house and royal flush used to be phrases only known by dedicated poker players but now novices enjoy the game due to the surge in popularity of internet gaming sites, interactive television channels and mobile phones offering gambling services.  Nearly six million people in the UK engage in online gambling each month but unfortunately this is leading to a rise in the levels of unserviceable debt among participants with online gambling forecast to grow by 22% this year and with it fears over the number of players with serious debt. The average online gambling debt in the country is now £25,000 (source: bbc.news.co.uk 1.7.06)

The Gambling Commission, the independent regulator for gambling in Britain, was launched in 2005 but will not have responsibility for the regulation of 'remote gambling' until 2007, when the gambling bill comes to fruition. The new legislation will bring in a number of licensing conditions for gambling websites, which will require them to demonstrate that they are operating responsibly. These will include obtaining proper verification that a gambler is over 18 and allowing gamblers to set deposit limits and time limits themselves - something some sites do already.

Online betting has a unique set of characteristics that could lead to a further increase in gambling problems and the associated debts that go with them including the ability to gamble 24 hours a day as well as the risk of access by children and the decrease in the perception of the value of cash. At the moment, online gambling is still relatively new with the number of people running into debt low compared to the more traditional gambling such as horse racing and fruit machines.  However with predictions that online gambling will rise by 22% a year over the next five years and online poker predicted to rise by 44% it is believed that the rise in online betting will add to the UK's growing debt problem in the future.

There have always been a certain proportion of debt problems due to gambling but online gambling allows people to run up debts much more easily and faster. Unlike traditional gambling venues, where there is very much a cash culture, online gambling relies on credit cards and once you have registered your card details you can play for as long as your credit limit allows without breaking off to get more money.  Unfortunately, many online gamblers follow the traditional pattern of trying to 'chase their debts', betting more and more heavily in an increasingly desperate attempt to win back the money to pay them off.

The profile of the “typical gambler” is also changing due to the rise in internet sites available as there are now significant numbers of women gambling online many of whom have been tempted by the launch of internet bingo sites.  It has been reported that one website provider recently claimed that they take more through bingo than through poker and other casino games put together.  The internet also introduces people to games they might not have previously tried and removes the stigma associated with visiting the bookies although for many people the social aspect of gambling was an attraction with online gambling being done is isolation often without the knowledge of other members of the family.

If you have found yourself deep in debt due to gambling, or other issues contact us for advice. In the past it was felt that bankruptcy was the only solution but that can lead to a Bankruptcy Restriction Order with years and years of extra repayments which can take up to fifteen years but we can help you mange your debt problems.

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