|
Does gambling cause bankruptcy in Las Vegas?Gambling and tourism are obviously the largest industries in Las Vegas, Nevada. Is the rate of bankruptcy higher in places like Las Vegas, when compared to places where there is less access to gambling? There are many studies on bankruptcy in Las Vegas, and the results vary depending on who has conducted the study. |
There is no doubt that some people are problem gamblers. That means that they gamble more than they can afford to lose, and get into trouble because of it.
An informal survey of bankruptcy attorneys reveals that between one and ten percent of bankruptcy filings are linked to gambling losses. Other research has shown that a significant percentage of compulsive gamblers are forced to file personal bankruptcy because of their losses. This is not surprising, since it is estimated that the vast majority of compulsive gamblers use debt to gamble, including high interest credit card debt.
Does that mean that gambling causes bankruptcy in Las Vegas? No, in most cases it doesn’t. If you don’t borrow to gamble, you won’t incur any debts if you lose, so you won’t need to go bankrupt.
So why is it that people believe that the rate of personal bankruptcy is higher in areas close to legalized casinos and other gambling establishments?
Part of the reason is that if you are close to gambling, you have the opportunity to gamble more, and if you are a compulsive gambler, you may get into trouble, which can lead to personal bankruptcy.
Another reason is that the person most likely to go bankrupt is someone who is working, and needs protection from their creditors to prevent their wages from being garnisheed. If you have been unemployed, you may move to a city where there are jobs. Las Vegas is a growing city, so many people move there to make a better life for themselves and their family. But if you bring a lot of debt with you, it may be necessary to go bankrupt once you get there.
Thus it may appear that gambling is the cause of more bankruptcies, but in some cases it is the exact opposite. People move to Las Vegas for a good job, but once they start working their creditors track them down and they need to go bankrupt to protect themselves from the debts they incurred before they moved to Las Vegas.
If you are experiencing financial problems and are considering bankruptcy in Las Vegas, please contact an attorney today.
 |
| Build your Nevada business with online incorporation services or get a cash loan. Learn how online today. |