Gambling & Debt: When Hope Turns Into Harm

As household debt rises to 165% of disposable income, some are turning to gambling, hoping for a big win to solve their money worries. But this perceived shortcut rarely pays off, often leading to devastating financial and emotional consequences.

At Money Sweetspot, we see the harsh realities of gambling debt every day. Applications with 30%, 50%, or even 90% of income spent on gambling are no longer rare - they’ve become alarmingly common. Behind these numbers are stories of people desperate for change but caught in a cycle that feels impossible to break.
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The False Promise of Gambling

For many, gambling starts as entertainment - a Lotto ticket, a sports bet, or a few spins online. But for those already under financial pressure, it can quickly turn into a pursuit of hope. The lure of a big win is powerful, but the reality is harsh: most people lose far more than they gain.

Consider these statistics:

• TAB’s 2023 annual report revealed a 21% year-on-year increase in gaming income, with 80% of bets placed online.
• On Melbourne Cup Day, $30 million was gambled by Kiwis, with nearly 7000 bets processed every minute before the race.

Young men in their 20s are particularly vulnerable, targeted by ads on sports and gaming platforms. The gamified nature of online gambling makes it feel harmless - like “just a game” - while silently draining financial stability.
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‍The Real Cost of Gambling

‍‍What could 50% of your income do for your future? For some, that’s what’s being spent on gambling each month. Money that could go toward paying off debt, saving for a home, or building financial security is often lost in the cycle. Instead of solving problems, gambling creates more debt, more stress, and fewer options.
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Breaking Free From the Cycle

‍The journey out of gambling and debt isn’t easy, but it’s possible. Here’s how to take the first steps:

• ‍Know Your Numbers: Review your bank statements to see the true impact of gambling on your finances. It can be an eye-opening experience.
• ‍Block Gambling Transactions: Many banks offer tools to block gambling-related payments. Use these to create barriers.
• ‍Seek Support: Services like Safer Gambling Aotearoa provide free and confidential help. Call 0800 654 655 or text 8006 to get started.
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Real Hope Comes From Taking Control

We understand that gambling can feel like the only way out. But hope doesn’t come from a lottery ticket or a bet—it comes from small, consistent steps toward a better future. At Money Sweetspot, we believe in real financial freedom - not the illusion of a lucky break. Through our free financial education platform, we empower customers to develop long-term money skills, break free from the debt cycle, and stay debt-free.