Gambling Addiction Can Hit Seniors Hard

For senior citizens, protecting your assets and preserving your cash flow are challenging enough under normal conditions; it’s even harder when behavior - including gambling addiction - is the source of your financial distress.

For seniors, financial pitfalls come in many forms, such as Ponzi schemes, Internet scams or a relative who takes advantage of them. But many also see their life savings slip away — and into casino coffers — because of their own actions.

Protecting your assets is challenging enough under normal conditions; it’s even harder when your behavior is the source of your financial distress. The AARP cites studies that estimate Americans lost $100 billion gambling in 2008 alone and that 4% to 5% of U.S. residents are addicted to gambling. Practically speaking, that means nearly 15 million Americans are gambling addicts, and anecdotal evidence alone suggests that a substantial number of them are seniors.

While you didn’t wake up one day and suddenly become addicted to gambling, there are risk factors that can increase the vulnerability of people in general, and older persons in particular. Losing a spouse and the resulting loneliness can be a trigger. After working for your entire life, sudden retirement can leave you at a loss for what to do, and gambling can appear to be a way to fill that void. Health problems can limit physical activities, and gambling is nothing if not a sedentary activity. And, according to a BMC Geriatrics research article, declining cognition can take away a person’s aversion to risk.

In recent years, the advent of gambling on Indian land and liberalization of state gambling laws have allowed gambling conglomerates to expand their operations beyond their traditional homes in Nevada and Atlantic City and proliferated across the country, offering a convenient temptation for would-be players who are no longer precluded from gambling by distance and travel. According to the AARP, casinos and other forms of gambling establishments operate in 38 states, making it easier for a bored senior to join the fun.

In its article "Older Adults Vulnerable to Gambling Addiction," the Seattle Times tells the story of a former Boeing executive. After she retired, her fondness for blackjack became a full-blown addiction, and the once highly paid executive lost approximately $500,000. It was common for her to get cash from her credit union and use cash advances on credit cards for money to feed her addiction. Only when her husband threatened to leave her did Selymes confront her problem. Getting into a treatment program helped, but it still took several years before she was gambling-free for one continuous year.

Help Is Available

Spotting the warning signs of a gambling problem can be the first step in helping a friend or relative get it under control, says the Nevada Council on Problem Gambling:

• Look for a sudden need for money or loans, or secrecy or anger when questioned about their financial situation.
• Watch for changes in personality, attitude and physical health.
• Missing possessions or assets can be another sign, as can a loss of interest in activities with family and friends.

Adapted from the Daily Plan-It Newsletter