Can I Get a Payday Loan To Cover Gambling Losses?

Author · Modified on 18 July, 2023

Whilst you can use payday loans for any purpose including gambling debts, this is absolutely not recommended, since it is an expensive form of credit and could lead to a dangerous spiral of debt and financial trouble.

Payday loans exist to help people who need money for emergencies until their next payday, or to help cover an unexpected bill, i.e. a medical bill, car repair or dental bill.

The American Gaming Association have stated that gaming in the U.S. is a $240 billion industry, and as many as 10 million Americans live with a gambling addiction, and so gambling debts are all too common across the country.


More than 20% of compulsive gamblers end up filing for bankruptcy because of gambling losses.


Can I Use Payday Loans to Pay-Off Gambling Debt?


Technically speaking, you could use a payday loan to pay-off a gambling debt; it does come under the bracket of a financial emergency (see same day loans for emergencies for more information). Having said that, it is not advisable to do so.

According to, the average debt generated by a man addicted to gambling is between $55,000 and $90,000. Women gamblers average $15,000 of debt. More than 20% of compulsive gamblers end up filing for bankruptcy because of gambling losses.

To put it bluntly, gambling debt is a serious problem for people across the US, and if you are struggling to pay this off, the chances are that you won’t find it any easier to pay-off debt accumulated from payday loans.

Therefore, if you are intending on paying off your gambling losses with a payday loan, you need to ensure that you have a solidified plan as to how you intend on repaying your loan on-time and in full.


Why Should I Not Use Payday Loans To Pay Gambling Losses?


Payday loans are expensive form of finance and should not be used to pay off gambling debts. Payday loans are used for genuine emergencies with a view that you can repay in full on your next payday from work. But the danger is that if you struggle to repay, you can find the interest increases rapidly and you can find yourself taking our multiple loans and into a quick spiral of debt.

And if you already have issues with gambling losses, this is not addition financial pressure that you need on top. A payday loan could be effective as a complete one-off, but speaking to a professional financial advisor, debt counsellor or family and friends should be your first choice.


Will Gambling Debt Affect My Credit?


Gambling payments, online or offline, won’t specifically show up on your credit history. Even though gambling does not explicitly affect your credit score, behaviours associated with recreational gambling could result in debt that does impact your credit.


Missed Payments

If funds get tied up in gambling payments or debts, you may find yourself missing payments for other things. Missed payments are reported to the credit bureaus and can hurt your score.


Casino Lines of Credit

Casinos may directly grant lines of credit to gamblers. An application for a casino line of credit most likely will result in a hard inquiry on your credit file, which can drop it a few points.


How to Get Help with Gambling Debt


1. Limit how much you gamble.

Firstly, if you are finding yourself accumulating debt that you’re struggling to repay, you can take measures to limit how much you gamble. You can ask gambling companies to stop serving you, and they will likely be happy to do so. You can also ask your bank to put a limit on how much you spend on gambling sites. You could also use software to block gambling websites on your computer.


2. Talk to someone about your gambling problem.

Secondly, you should rest assured that there is always someone that you can talk to about your problem. You could get group support by going to a Gamblers Anonymous meeting near you, or you could speak to a trusted friend or family member.


3. Talk to a debt management specialist.

Lastly, if you find yourself having accrued a large amount of debt through gambling, there are debt management sites that can help you decide on the next steps for you to take.

How To Get Out of a Gambling Debt Cycle


Gambling is a problem that could affect both you and your nearest and dearest too. The financial ramifications as well as the emotional and mental consequences of a gambling addiction can have a heavy toll on your personal life. If you find yourself in debt as a result of a gambling addiction, these solutions could help you to recover and get your life back on track:


Debt Snowball Method

With the snowball method, you build up momentum by paying off your debts starting with the smallest account and progressing until you tackle the largest.


Debt Avalanche Method

Using the avalanche method, begin paying off the account with the highest interest rate first to save yourself the most over your debt repayment.


Debt Consolidation Loan

A debt consolidation loan lets you consolidate several debts into one single loan payment, possibly at a lower interest rate. With this option, it’s important to resist the urge to take on more debt.

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