A wide body of research indicates that military veterans experience financial hardship within their first few years after leaving the military. While older veterans tend to show higher financial stability, younger veterans (under the age of 40) face significantly higher rates of financial strain. Recent studies also suggest that nearly one-third of active duty soldiers in the United States face financial distress, which sets the table for further issues once they are discharged from service. Health-related financial strain is prominent, with new veterans reporting that they had to deplete savings from their time in service to cover medical costs. Meanwhile, they are statistically more prone to relying on high-cost, short-term financial solutions, including payday loans, pawn shop loans, and paying bank overdraft fees. It’s the perceived financial solutions that are proving to be especially problematic, with one in particular being explored in today’s article.
While gambling is often looked at as being a cause of money troubles, which it generally is, the converse may also be true for one of America’s most vulnerable populations. Do younger veterans financial problems lead to gambling behavior as an erroneous release from financial distress? And if so, will participation lead them further into debt and other negative outcomes? Let’s review.
Overview of How Younger Veterans Financial Problems May Lead to a Vicious Cycle of Unhealthy Gambling Behavior
I. Why Young Veterans Return Home with Financial Problems
“Because service members living on base have their basic needs met, they may not have had the opportunity to learn the skills necessary to be financially independent and manage money that their counterparts in the civilian sector had to master at an earlier age.” (University of North Carolina-Chapel Hill)
Young veterans often face significant financial problems returning home from service due to a jarring loss of housing and food subsidies, a lack of civilian career experience, and the delayed processing of disability benefits. These issues are frequently compounded by mental health challenges (more on this in Section III below) and above-mentioned predatory lending targeted at young service members.
Studies show debt and financial problems act as a powerful catalyst for gambling initiation. Individuals in financial distress (veterans included) often turn to betting as a high-risk “quick fix” to clear existing financial obligations. Rather than solving the issue, this coping mechanism for financial anxiety frequently accelerates debt. We explore the irrationality of this behavior in Section II.
II. False Belief in Gambling as Relief from Financial Anxiety
Recently discharged veterans are turning to gambling with the hope of making quick money to offset post-service drops in income, clear civilian debt, and escape financial anxiety. In doing so, they join tens of thousands of other Americans – namely young adult males – who hold the perception that gambling is a reasonable reaction to rising living costs and housing affordability that have made traditional post-service career paths feel insufficient. Desperate for a way to achieve financial independence, online gambling is looked at as a means to an end. This false perception is egged-on by social media platforms that are currently flooded with influencers and sponsored content showcasing curated lifestyles funded by sports betting and prediction market operators, all of which perpetuate the illusion that making money on their respective platforms is a common outcome. The belief is elevated within many sports betting veterans who consider themselves knowledgeable enough about leagues (NFL, NBA, et cetera) to give themselves an edge over sportsbooks. Meanwhile, after having served in the military, some may believe they have superior insight into political events being offered as tradable contracts on prediction market platforms. An active serviceperson has already been charged with using classified information to make money on these markets, so it’s no stretch to suggest that recently discharged servicepersons may attempt to leverage real or perceived intel to make successful trades. Consider the implications of such a thing – a young veteran may have just served in an overseas conflict, only to return home to bet on it.
“A young veteran may have just served in an overseas conflict, only to return home to bet on it.”
Are these veterans actually holding on to false beliefs regarding gambling as a way out of financial problems? For the vast majority of them, yes. The often cited Gambler’s Ruin formula confirms that over time, gamblers will lose their stake and enter into debt against any operator with infinite or significantly larger wealth, such is the case when playing against any regulated online casino or sportsbook (view details here). And what about prediction markets that are being positioned as investment vessels for supplementing income, if not as a career? While reports from military media may make a veteran believe that they have a leg up on the average civilian in making prediction market trades (for example) the reality is as follows:
Over 70% of traders on CFTC regulated prediction market platforms lose their money. (source)
76.5% of all gains on CFTC regulated prediction market platforms are captured by the top 1% of traders (source)
III. Already Prone to Problematic Gambling Behavior
The false belief that gambling can hedge against financial problems is a cognitive distortion that is observed in other vulnerable population groups that have an illusion of control over the activity. And yes, veterans are a vulnerable population – one of the most vulnerable, in fact.
This susceptibility to problem gambling is due to a combination of factors, including their risk-taking nature, exposure to traumatic events, and easy access to 24/7 online betting apps that they can tap into whenever boredom along with service related feelings of anxiety, stress, depression creep into their psyche. Soon after habitual engagement, a dopamine loop associated with addictive gambling behavior often becomes evident within the veteran population, because as mentioned, many struggle with stress, trauma, boredom, and difficulties adjusting to civilian life after military service. Online gambling provides fast rewards and bursts of dopamine that temporarily relieve these issues, along with financial anxiety. Over time, repeated exposure to these dopamine surges can condition a young veteran’s brain to crave the excitement and escape gambling provides. A harmful cycle of compulsive behavior takes hold, which is followed by added financial instability that is the most common symptom of problem gambling.
IV. Effective Support for Managing Veteran Financial Anxiety
Are you a veteran struggling with anxiety related to financial problems, and considering gambling as a way out? Or have you already ventured into gambling behavior and realized it’s proving to be an ineffective and unhealthy solution? Be thankful that you found Kindbridge Behavioral Health.
Financial Counseling
To begin with, we encourage you to access resources to help correct the specific financial issues that you struggle with. You must proceed with caution, however, as predatory debt relief services specifically target veterans by charging exorbitant upfront fees, offering false promises of “military credit forgiveness,” and even directing vets to stop paying creditors which ruins credit scores and invites lawsuits. Watch out for red flags such as i) upfront fees, ii) advertisements using verbiage such as “”Veteran Forgiveness”, and iii) companies that tell you to stop paying creditors while they negotiate a better settlement on your behalf. Instead, seek out free, vetted credit counseling and debt management plans made available by specific military charities in your area (homework required), federal resources, and accredited non-profit organizations. Examples include the following:
- VA Debt Management Center (view more)
- National Foundation for Credit Counseling (NFCC)
- Money Management International (MMI)
- Military OneSource (view more)
Financial Anxiety Counseling and Gambling Treatment
To get help with anxiety, stress, and depression related to financial problems in addition to cooccurring issues such as problem gambling, lean on our online counseling platform. Kindbridge Behavioral Health has deep pedigree in counseling services for active and retired members of the U.S. Armed Forces.
We are proud to offer FREE no-commitment mental and behavioral health assessments and have various programs in place to offer FREE ongoing counseling to the military in certain regions (view here). Additionally, we have partnered with one of the two main regional managed-care health plans for the U.S. military, serving active-duty members, retirees, and their families. Through our partnership with TriWest Healthcare Alliance, we are able to provide covered comprehensive support across 26 states. We have also partnered with other insurance providers that may further supplement counseling for digital dependencies and cooccurring mental health issues. Reach out today by clicking below or calling the provided number to begin with a FREE assessment.
