Gambling addiction, also known as problem gambling, is a compulsive behavior that can lead to severe financial distress, collapsed relationships, and even legal consequences. Many of us who have worked in the gaming industry are familiar with how problem gambling becomes a problem and the constant “chasing effect” that stems from it. Moreover, we are familiar with the far-reaching impact it has on friends, family and coworkers related to the individual who is stuck in the downward spiral of problem gambling.
Among the most concerning outcomes is the link between gambling addiction and financial crimes such as fraud, theft, and embezzlement. This connection, sometimes subtle, is easily explained through the lens of the “Fraud Triangle,” a concept that outlines three key factors that drive individuals to commit fraud: pressure, opportunity and rationalization. The general opinion is, no matter the type of fraud or theft, at least one point of the triangle correlates to the facilitation of that illicit activity.
The Fraud Triangle and Gambling Addiction:
- Pressure: Individuals with a gambling addiction often find themselves in dire financial situations. As the addiction escalates, so does the need for money to continue gambling. The intense pressure to cover gambling debts or simply to keep playing leads some to consider illegal means of obtaining funds.
- Opportunity: In many cases, those with access to organizational funds or financial accounts may see an opportunity to divert money without immediate detection. Whether it’s through their job or a position of trust, the availability of funds coupled with weak internal controls can create the perfect storm for fraud or embezzlement.
- Rationalization: People with a gambling addiction might rationalize their actions by convincing themselves that they will repay the stolen money after a big win. This flawed reasoning often leads to a cycle of repeated theft as losses mount and the need for funds becomes more desperate.
Real-Life Examples of Fraud Driven by Gambling Addiction
Several recent cases highlight the devastating consequences of gambling addiction when it intersects with access to large sums of money:
- Jacksonville Jaguars employee pleaded guilty to stealing $22 million from the NFL team to support his gambling addiction. (Spots Grid Article)
- School district payroll benefits specialist jailed for embezzlement. Suspect points to gambling addiction for the reasoning behind the embezzlement. (Midland Daily News)
- Retired nun stole more than $835,000 from a Catholic elementary school to fund a gambling habit. (org)
Compassionate Support for Those Affected
While these cases demonstrate the serious consequences of gambling addiction, it’s crucial to approach this issue with compassion. Individuals who resort to fraud, theft, embezzlement or any other illegal activities due to gambling addiction are often in a state of significant emotional and psychological distress. Addressing the root causes of their behavior—addiction and mental health issues—is essential for both prevention and rehabilitation.
Support systems such as counseling, addiction treatment programs, and financial management assistance can help individuals recover from their addiction and rebuild their lives. Thankfully, casinos have mandatory training and postings (signs and brochures) to help empower persons with gambling addictions to find appropriate resources.
Where Do We Go From Here?
Organizations should implement robust financial controls and regularly monitor for signs of fraud to protect against these kinds of crimes. It begs the question: With requirements for those who serve alcohol to be trained in recognizing persons who might be visibly intoxicated, are there techniques to recognize individuals with potential gambling issues? And if so, how can that be incorporated into training, into Anti-Money Laundering and Fraud Mitigation programs? As financial institutions (including casinos) gain more knowledge about their customers, different programs can and should evolve to both prevent illicit activities but also offer the support these individuals need to help put them on the path toward healing and rehabilitation.
