Online gambling creates insolvency surge

by Gill Montia

Story link: Online gambling creates insolvency surge

The Insolvency Service, the government department that deals with bankruptcy, has reported a major increase in debt resulting from gambling activities.

Although the service has traditionally had referrals from casino and slot machine providers, a rapid growth in the number of online gambling portals is now impacting on its caseload.

A spokesperson for the Insolvency Service has warned that people playing online using their credit or debit cards can generate as much debt as their cards will allow.

As with many gamblers, this group of people will try to win back any money they have lost, and generate further debt in the process.

The Gambling Commission recently published data showing that 8.6% of adults participated in remote gambling on a monthly basis, during the 12 months to June 2007.

The Gambling Commission is a government body set up to regulate gambling in the public interest.

Its brief is to ensure that gambling is conducted in a fair and open manner and that children and vulnerable people are protected from being harmed or exploited by gambling.

As such, it will no doubt be responding to calls from the Insolvency Service requiring online gambling portals to do more to demonstrate their social responsibility.