Other People's Money: Gambling and Bankruptcy

Abstract

There has been a renewed focus on gambling and its social consequences. One potential consequence facing gamblers is bankruptcy. This article considers how gambling and gambling debts are treated in bankruptcy. It includes an examination of the extent to which gambling is a cause of bankruptcy; whether gambling debts should be treated differently from other debts; the attempts to deter and/or punish gambling through the use of criminal sanctions in bankruptcy legislation; whether gamblers should be denied, or have delayed, their 'fresh start'; and whether gambling transactions prior to bankruptcy are, and should be, avoidable by the trustee in bankruptcy.

Keywords: bankruptcy, gambling, debt, criminal sanctions, punitive measures

JEL Classification: K0, K00, K19, K29, K39