You can get out of gambling debt in Canada by seeking support and working with a Licensed Insolvency Trustee to explore solutions like a consumer proposal or bankruptcy. These options can reduce or eliminate unsecured debts, stop collection calls, and give you a clear path to rebuild your finances.
For many in Canada, gambling can lead to serious financial consequences. From online casinos to sports betting apps, the quick access to gambling has made it easier than ever for people to slip into debt. When losses start piling up, many Canadians turn to credit cards, payday loans, or lines of credit to keep gambling or to chase the money they’ve already lost. This cycle often results in overwhelming gambling debt that feels impossible to manage.
The reality is that gambling debt in Canada is common, and it can happen to anyone. The good news? There are legal and effective ways to deal with it. Licensed Insolvency Trustees (LITs) can help you explore debt relief options like consumer proposals or bankruptcy, while provincial helplines and support services provide the resources needed to address gambling behaviour itself.
In this guide, we’ll explain how gambling debt happens, what solutions are available, and how you can rebuild your finances.
Jump to:
- How many people have gambling debt in Canada?
- What to do if you have gambling debt
- Can I get a consumer proposal for gambling debt?
- Can you file bankruptcy on gambling debts?
- Are gambling debts enforceable in Canada?
- How to rebuild after debt relief
- Where can I get help to stop gambling in Canada?
How many people have gambling debt in Canada?
While there isn’t a single national number for Canadians with gambling debt, research shows that the issue is real and widespread.
Nearly two-thirds (64.5%) of Canadians aged 15 and over have gambled in the past year. Of those, roughly 304,000 people were at a moderate-to-severe risk of problem gambling. Problem gambling often leads to unsecured debts such as credit cards, lines of credit, and payday loans, when people borrow money to keep gambling or chase losses.
What to do if you have gambling debt
If gambling has left you with unmanageable debt, the most important thing is to act quickly. Here’s a 5-step approach you can take:
Step 1: Stop the gambling cycle
Stopping the cycle of gambling is the first and often hardest step to take, but there are things that can help ease the process:
- Use self-exclusion programs (like My PlayBreak in Ontario) to block access to casinos and online gambling sites.
- Install gambling-blocking apps to prevent or limit access to betting platforms on your devices.
- Cancel cash advances and freeze credit where possible to cut off quick funds that fuel gambling.
Step 2: Get gambling debt support
Gambling debt is often tied to gambling addiction. Provincial helplines, counselling services, and treatment programs (such as those offered by CAMH or the Responsible Gambling Council) can provide confidential help and help you address the root cause of the issue for long-term recovery.
Step 3: Assess all of your debt
To figure out how much of an impact your gambling debt is having, you need to look at the full picture. Write down every debt you owe: amounts, interest rates, and whether it’s secured (e.g., mortgage) or unsecured (e.g., credit card). Most gambling-related debt falls into the unsecured category. Once you have this clear picture, you’ll be able to make a fully informed decision on what to do next.
Step 4: Speak to a Licensed Insolvency Trustee (LIT)
Only LITs can administer legal debt solutions like consumer proposals and bankruptcies. A free consultation will give you a clear picture of your options and a structured path to gaining control over your gambling debt.
Step 5: Choose your gambling debt relief solution
LITs are there to provide your options, but they will never push you towards a specific choice. You choose, with their help, based on what you can afford and what fits with your life. Options include:
- Consumer proposals, which can wipe up to 80% of your unsecured debts.
- Bankruptcy, which provides a clean slate for more severe situations.
- Debt management plans, where you go through credit counselling.
Can I get a consumer proposal for gambling debt?
Yes. Most gambling-related debts are unsecured, which means they can be included in a consumer proposal.
This is a formal agreement, filed by an LIT, that allows you to:
- Consolidate unsecured debts into a single monthly payment.
- Pay back only a portion of what you owe, based on what you can afford.
- Freeze interest and stop collection calls.
- Keep your assets, as long as you keep up with the payments.
To be eligible for a consumer proposal, your total debts must be $250,000 or less (not including your mortgage). Usually, your total debt amount is reduced, and the remaining balance is repaid over a set period of time—often 5 years. Once completed, your credit report shows an R7 rating for three years or 6 years after it’s filed, whichever comes first.
Can you file bankruptcy on gambling debts?
Yes, most gambling-related debts, like credit cards, lines of credit, and payday loans, can be discharged through bankruptcy.
That said, gambling-related bankruptcies can be treated differently from other cases. Under the Bankruptcy and Insolvency Act (BIA), if the court finds that gambling contributed to your insolvency, it may:
- Delay your discharge,
- Add conditions (such as requiring proof of treatment or repayment efforts), or
- Suspend the discharge until you can show progress in addressing the gambling issue.
This doesn’t mean you cannot file for bankruptcy, it simply means the court may look more closely at the circumstances. Licensed Insolvency Trustees often recommend demonstrating that you’ve taken steps to stop gambling (such as counselling, self-exclusion, or treatment programs) to strengthen your case.
For many people, bankruptcy is a last resort when other options, like a consumer proposal, are not affordable.
Are gambling debts enforceable in Canada?
Yes, gambling debts are enforceable in Canada if they come from legal, regulated gambling or from borrowing (credit cards, lines of credit, payday loans). Creditors can pursue collection, add interest, and even sue for repayment. Informal or unregulated betting debts may not be enforceable, but in practice, most gambling debt involves mainstream credit.
How to rebuild after debt relief
No matter what debt relief you choose for your gambling debt, it will give you a clear slate to rebuild from. Here are a few key things you can do:
- Create a realistic budget and track spending.
- Consider a secured credit card to rebuild credit history.
- Pay all bills on time and in full.
- Build a small emergency savings fund.
- Avoid environments or triggers linked to gambling.
Where can I get help to stop gambling in Canada?
There are several confidential support options available across Canada:
- Provincial gambling helplines (available 24/7).
- CAMH (Centre for Addiction and Mental Health), which offers programs for gambling addiction.
- Responsible Gambling Council resources and treatment centre directory.
- Gamblers Anonymous (GA) meetings, which provide peer support.
Combining professional debt relief with treatment or counselling gives you the best chance of long-term recovery—financially and personally.
Gambling debt action plan checklist
- Create a realistic budget and track spending.
- Consider a secured credit card to rebuild credit history.
- Pay all bills on time and in full.
- Build a small emergency savings fund.
- Avoid environments or triggers linked to gambling.
Get out of gambling debt with Harris & Partners
At Harris & Partners, we’ve helped Canadians resolve debt—including gambling-related debt—for decades. Whether you’re looking into consumer proposals, bankruptcy, or just need some advice, our Licensed Insolvency Trustees can provide legally binding solutions that stop collection calls and give you a plan to move forward.
If gambling debt has taken over your finances, we can help you take back control safely, legally, and with long-term recovery in mind.
