How Gambling Can Negatively Impact Loans, Mortgage Applications
Published:
Jul 30, 2025
,
2:41 p.m.
ET
Key Points
Lenders are increasingly flagging gambling transactions during the loan and mortgage application review processes.
Regular or high-volume gambling can be seen as a sign of financial instability in the eyes of underwriters.
Gambling-related activity on bank statements can reduce approval chances or loan amounts.
—————
We are now a little over seven years removed from the Supreme Court’s reversal of the Professional and Amateur Sports Protection Act of 1992, allowing states to legalize sports betting. As time has passed, more and more Americans have been surprised to learn that their gambling activity can jeopardize their loan or mortgage applications, as reviewers see deposits to sportsbooks or online casinos on recent bank statements.
With mobile sports betting now legal in 30 states, plus Washington D.C., many individuals are unaware that even occasional gambling transactions can raise red flags during financial assessments. Lenders are scrutinizing personal finances more closely than ever, and for prospective homebuyers or loan applicants, gambling habits could be the unexpected reason a dream home or small-business vision stays out of reach.
Let’s dive into how gambling can impact your chances of getting a mortgage or loan approved, what lenders are looking for and how you can improve your approval chances if gambling has become a regular piece of your financial behaviors.
Can gambling transactions impact Americans’ ability to get approved for loans and mortgages?
Yes, nowadays gambling can undoubtedly affect whether or not you’re approved for a mortgage or personal loan.
Most lenders perform a full-fledged review of your recent financial activity, including bank statements from the previous 3-6 months. If these show frequent or high-dollar deposits to betting platforms like DraftKings, FanDuel or BetMGM, it can be interpreted as a sign of risk. Underwriters are looking for indicators that borrowers can consistently repay debt, so erratic, unreliable or high-risk spending habits do not help.
Occasional, low-stakes betting may not raise notable concerns, especially if your income is strong and your credit score is healthy. But if gambling appears to be a regular habit or is funded by credit cards, loans or overdrafts, it could tank your application.
Even if you meet the eligibility requirements, gambling could tilt the scales against you when lenders evaluate affordability and financial stability.
Increased focus on gambling transactions when reviewing U.S. loan applications
One reason lenders are focusing more on gambling transactions today is the surge in mobile sports betting and online casinos across the U.S., which has normalized gambling as a daily activity. Many borrowers don’t realize how visible their habits are during underwriting reviews.
Lenders are under more regulatory pressure to evaluate financial vulnerability and risk, particularly as consumer debt hits record highs. Thanks to data analytics, banks can now automatically flag payments to gambling platforms, and if they are around paydays, it can be an indicator of worrying behavior.
This scrutiny is nothing new in places like the U.K. and Australia, where gambling has long been considered a red flag in mortgage underwriting. But U.S. institutions are quickly catching up.
Why gambling activities are seen as a negative by lenders
From a lender’s point of view, gambling represents uncertainty and potential instability, which are the last things they want in a borrower. Their primary concern is affordability: can you consistently make payments for years to come?
Gambling worries lenders because it often involves unpredictable, high-risk behavior that can compromise your ability to save, potentially leading to late or missed payments, and may be symptomatic of deeper financial mismanagement.
How often, how much, and how gambling is funded are what generally determine the level of concern. Small, rare bets funded by discretionary income may be overlooked, but daily or weekly deposits, especially if linked to credit or overdrafts, can lead to rejection.
How far back will lenders look to see if you’ve been gambling?
Typically, lenders will examine the last 3 to 6 months of bank statements during your application. That means even if you’ve cleaned up your finances, recent gambling could still appear in your file.
If you’re serious about getting approved, experts recommend pausing all gambling activity at least three to six months before submitting an application. This helps increase the chances of a clean record and avoids the need to explain past transactions.
Some lenders may also ask for explanations if gambling activity is visible and coincides with large withdrawals or inconsistent income.
Gambling and other red flags in lenders’ risk calculations
Gambling is just one of many red flags underwriters look for when evaluating a mortgage or loan application. High credit utilization, frequent overdrafts, irregular income, unpaid debts and late payments on bills or loans are among the other red flags that combined can create a portrait of risk. When gambling is part of that picture, it can push an application into the rejection pile, even if everything else seems okay.
Lenders want to see responsible, consistent financial habits. If your bank statements show regular gambling deposits, daily betting habits or reliance on credit to place wagers, you may be considered too risky.
How to stop gambling if you want to
If you’re planning to apply for a mortgage or loan, stopping gambling may be the single most effective step you can take to strengthen your financial profile.
Here are practical ways to start:
Set a freeze on your betting accounts, consider self-exclusion or gambling app/site blocking tools like Gamban.
Move gambling activity to a separate account or prepaid card (although ideally, you should pause/stop it altogether).
Speak with a certified counselor or financial coach for support.
Replace gambling with other hobbies that provide similar excitement without financial risk.
You don’t have to do it alone, and if you’re struggling, professional help can make a big difference.
Birches Health understands how gambling, sports betting and even day-trading can spiral out of control. What starts as a fun hobby can quietly sabotage your long-term financial goals, including your ability to buy a home or get approved for a loan.
Birches’ expert team of certified counselors offers virtual, evidence-based treatment that’s private, personalized and built around your specific habits. Whether you’re looking to quit entirely or simply regain control, Birches is here to help you get back on track before it impacts your future. To get in touch with Birches or learn more about your options, you can:
Call 833-483-3838
Email help@bircheshealth.com
