Do credit card bans reduce gambling harm? Experts say not always

"Not being able to use credit cards on gambling apps may help reduce credit card debt for a few people, but many people will just use their credit cards for their other expenses. Once the debt is in cash form, it is easy to use those funds to gamble."

"Morgan says some people go a step further. They take out personal loans or pull cash advances, turning credit into spendable cash before they ever open a betting app. Once the debt is in cash form, it is easy to use those funds to gamble."

"The tax issues with gambling are likely to keep getting worse. Previously, you could zero out any winnings by your losses... but now winnings are only offset by up to 90%. For frequent bettors, that can translate into taxes on money they didn't actually keep, adding another layer of financial strain even as access to credit tightens."

States blocking credit cards for gambling aim to reduce harm by limiting borrowed money. However, this policy has mixed results. People often shift to other payment methods, such as debit cards or personal loans, to fund their gambling. Ashley Morgan, a debt attorney, notes that while some may reduce credit card debt, many will still rely on credit for everyday expenses. Additionally, recent tax changes complicate the financial landscape for gamblers, as winnings can no longer be fully offset by losses, increasing their tax burden.

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