Gambling isn’t exactly America’s pastime, but it is a pretty common source of entertainment for lots of people. It got even more popular when everyone was shut in for the pandemic, too. But beware: for many it’s an addiction! Also, if it gets out of control, the odds are pretty good it’ll have a serious impact on your Paycheck.
So, how should YOUR Paycheck think and feel about gambling? 🤔
Here are Five Fast Facts:
- 🌎 It’s Everywhere! Gambling in some form – whether casinos, race tracks, or online – is allowed in every state except Utah and Hawaii. Around 75% of American adults have gambled in the past year, 15% gamble weekly, and over 5 million have a gambling “problem.” And no, that problem is not the fact that the house almost always wins!
- ⚖️ Tax Implications - The IRS allows you to count losses (at least some of them…maybe), and of course requires you to report winnings. There are a bunch of rules around it (it’s a tax thing, after all), but remember that Uncle Sam always gets his cut!
- 📝 Track It - Perhaps ironically, it’s very important to keep good records of your gambling. This should help cover you in terms of paying the proper amount of taxes, as well as giving you a shot at deducting losses. The Feds aren’t likely to storm your house for a few hundred bucks in unreported gambling winnings, but why take the chance? After all, they did recently allocate money to hire 87,000 new agents…
- 💸 Taking Credit - Does gambling affect your credit? Not directly, but a lot of the behaviors that go along with gambling do. For example, taking out cash advances or payday loans, missing bill payments, and increased credit utilization all impact your credit score. And when your credit score goes down, you pay higher interest rates for financing (or you get denied altogether).
- 📈 Gambling Into The Poor House (Or Worse) - A recent study found a connection between gambling and financial hardship. Any amount of gambling increased the chances of financial trouble, but people who spent just 3.6% of their income were one-third more likely to miss a mortgage payment! Gamblers who spent 10% were twice as likely! Over a 7-year period, increased gambling spend actually increased the chances of unemployment, disability, and mortality. You’re not just gambling with your money…you’re gambling with your actual life! ☠️
🔥Bottom line: We get it, gambling can be fun! But, like most anything, it needs to be in moderation. Too much and you start getting into all kinds of trouble, not the least of which is financial. Keep yourself in check and your Paychecks – and your family and friends! – will thank you! If you do need help, there are resources everywhere. Go find one!
What’s the worst gambling story you’ve ever heard (or experienced)?
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