ACFCS Contributor Report: Gambling and Fraud: When Addiction Fuels Embezzlement, Occupational Fraud, and Elder Financial Exploitation

Introduction

Fraud investigators have long relied on the “fraud triangle”—pressure, opportunity, and rationalization—to explain why trusted individuals commit financial crimes. In recent years, another behavioral force has been increasingly evident in casework: gambling addiction.

Whether through workplace embezzlement, occupational fraud, or exploitation of vulnerable elders, the compulsive need to gamble transforms ordinary financial stress into acute desperation.

This is not a fringe phenomenon. According to the National Council on Problem Gambling, two to three percent of U.S. adults meet the criteria for problem gambling.

Studies further show that problem gamblers are over twice as likely to commit economic crimes compared to the general population.

The emerging picture is clear, present and dangerous: gambling does not merely correlate with fraud—it often acts as its accelerant.

By intensifying the “pressure” element of the fraud triangle, a gambling disorder transforms financial stress into a destructive compulsion that fuels embezzlement, occupational fraud, and elder financial exploitation – in some high-profile cases, to the tune of hundreds of millions of dollars.

Today, the risks are magnified by the accessibility of gambling.

“mystery boxes” that hold the chance of a rare, coveted weapon, piece of armor or simply a cosmetic ornament for your digital avatar.

All of these systems work the same way mentally and physically: surging dopamine highs and crushing cortical lows when the winning streak stops, pushing individuals to cast reason, logic and mathematic improbabilities aside.

The mindset driving this: it will all be worth it and I can pay everything and everyone back with the next big jackpot.

For the gambling addict of today, this constant access collapses the time between losses, desperation, and fraudulent action.

A single night of online betting can result in tens of thousands of dollars in debt—far faster than the gradual accumulation of losses in most traditional settings.

Case histories confirm the pattern

From executives at professional sports franchises embezzling millions for online wagers, to nonprofit CFOs withdrawing donor funds at casinos, to caregivers draining elder accounts at racetrack ATMs, gambling repeatedly surfaces as a driving factor behind fraud.

In nearly every instance, offenders rationalize their actions as a temporary fix, believing they will soon “win it back.”

Instead, the cycle of losses ensures that the fraud only grows until detection is inevitable.

These dynamics also played a role in a recent case that shocked the sporting worlds and tarnished the reputation of basketball’s largest and most profitable global stage.

In October 2025, federal authorities unveiled a sweeping indictment that included more than 30 individuals tied to illegal betting and rigged poker operations, with some of those involved connected to the National Basketball Association, or NBA.

Terry Rozier (of the Miami Heat basketball team) and Chauncey Billups (head coach of the Portland Trail Blazers) were among those arrested. Prosecutors allege the schemes involved using non-public information—such as player injuries, minutes, or game-status data—to place large bets, especially on “player prop” markets (e.g., how many points a player would score).

Gambling addiction often becomes a gateway into these kinds of schemes.

When individuals (whether players, coaches, or insiders) become burdened by mounting debts or obsession with winning, they are more vulnerable to offers—to share inside information, manipulate participation, or join collusion—to recover losses or capitalize on perceived opportunities.

For example, earlier in 2024 another NBA player, Jontay Porter, pleaded guilty to a scheme where he limited his on-court minutes (thereby affecting his statistical output) after placing bets and tipping off others.

His motivation: clearing large gambling debts.

Such addiction not only clouds judgment but also creates leverage for others: people deep in gambling trouble may accept risky or unethical proposals, be less willing to refuse conspiratorial suggestions, and may be directly targeted by criminal operators who exploit their vulnerability.

In short, the addiction both fuels the misconduct and makes the person an easy target for manipulation or coercion.

Problem Gambling and the Fraud Triangle

The American Psychiatric Association classifies gambling disorder as a behavioral addiction marked by preoccupation with gambling, “chasing” losses, unsuccessful efforts to cut back, and reliance on others to relieve financial stress.

These traits align closely with the pressure element of the fraud triangle.

• Pressure: Mounting losses, debt collectors, and the compulsion to “win it back” create an ongoing cash crisis.
• Opportunity: Weak internal controls or sole authority over finances give addicts a ready outlet to access funds.
• Rationalization: Offenders often frame theft as “borrowing” until the next big win allows them to repay.

Problem gambling—more commonly referred to as gambling addiction—is not simply about the act of wagering money; it’s a behavioral disorder rooted in compulsion, risk-seeking, and the psychological rush of potential reward.

Forensic and behavioral research reveal that compulsive gambling can fundamentally alter decision-making, eroding a person’s ability to assess risk, delay gratification, or adhere to ethical boundaries.

Within occupational or fiduciary settings, this addiction can create a powerful internal conflict between financial need and professional responsibility.

The individual’s desperation to recover losses or sustain the thrill of gambling amplifies the “pressure” element of the fraud triangle—often the first step toward rationalizing or committing fraud.

In this context, gambling addiction also influences the other two elements of the fraud triangle: opportunity and rationalization.

The opportunity often arises from access to assets, weak internal controls, or trust-based roles, allowing the gambler to divert funds undetected.

Meanwhile, rationalization—justifying the behavior—emerges as the gambler convinces themselves that the theft is temporary, that they will “pay it back after the next win,” or that they are simply borrowing from their employer, client, or family member.

Over time, this cycle of pressure, opportunity, and rationalization becomes self-perpetuating, as losses mount and integrity erodes.

The result is not only financial ruin but also reputational and emotional devastation, underscoring the importance of recognizing problem gaming as both a mental health issue and a significant fraud risk factor within organizations and families alike.

Occupational Fraud and Embezzlement: A Costly Pattern

The Association of Certified Fraud Examiners (ACFE) 2024 Report to the Nations highlights that the median loss from occupational fraud is $145,000 per case, with a significant number exceeding $1 million.

Among the most common red flags are living beyond one’s means and financial difficulties—both hallmark traits of gambling disorder.

Recent prosecutions illustrate the pattern:

• Shohei Ohtani was victimized by his longtime interpreter and confidant, Ippei Mizuhara, who was accused and later convicted of stealing approximately $17 million from Ohtani’s bank accounts between November 2021 and March 2024 to pay off gambling debts. Mizuhara also impersonated Ohtani in communications with banks. He pleaded guilty to bank fraud and tax fraud, was sentenced to 57 months in prison, and ordered to pay restitution to Ohtani.
  
  
• Jacksonville Jaguars Case (2019–2023). Amit Patel, the team’s former finance manager, stole more than $22 million through a virtual credit card scheme, much of which was gambled away. He was sentenced to 78 months in federal prison.
  
  
• Washington Nonprofit CFO (2016–2021). Susana Tran Tantico embezzled over $3 million from a Seattle-based nonprofit, withdrawing significant amounts at casinos. She received 41 months in prison.
  
  
• Minnesota Property Manager (2023). Mai Houa Xiong stole over $1 million from her employer to fuel a gambling addiction, resulting in a 5½-year prison sentence.

Each offender rationalized the conduct as temporary, convinced that one more win would restore the missing funds. Instead, the schemes grew until exposure was inevitable.

Elder Financial Exploitation: A Vulnerable Target

The connection between gambling and financial exploitation extends beyond the workplaces and targets vulnerable victims.

Between June 2022 and June 2023 FinCEN received more than 155,000 Suspicious Activity Reports (SARs), identifying nearly $27 billion in suspicious activity, that listed elder financial exploitation as the alleged suspicious activity.

In September 2024, The Washington State Gambling Commission issued a statement regarding “Elder abuse often has a gambling connection”:

Key Findings & Observations

• The Commission notes a rise in financial exploitation of vulnerable adults, and in many of the cases they investigate, gambling plays a central role.

• In many of these cases, the victim is not a gambler—often bedridden, cognitively impaired, or otherwise unable to participate in gambling. The perpetrator is typically someone close: a trusted family member, friend, or caregiver.

• Frequently, the perpetrator holds power of attorney or otherwise has control over financial affairs, which they misuse to withdraw funds and spend on gambling (e.g. casinos, slot machines, table games).

• The thefts can be extensive—sometimes depleting life savings, with amounts running into hundreds of thousands of dollars.

Challenges, Motivations & Considerations

• Since the victim usually doesn’t benefit from the gambling, proving motive becomes more straightforward in some respects: the Commission argues that using someone else’s funds to gamble provides no legitimate benefit to the victim.

• Investigations can be complicated by limited evidence retention (e.g. casino video footage is stored only for a limited time), and by victims’ cognitive impairments, which make them less reliable as witnesses.

Perpetrators often rationalize their actions by treating the funds as something they would have inherited or by convincing themselves the theft is justifiable given their gambling losses.

Gambling-Linked Exploitation in Practice:

• Texas Caregiver Case (2024). A caregiver for a 91-year-old repeatedly used the victim’s debit card for ATM withdrawals at Delta Downs Racetrack Casino & Hotel, draining the elder’s account until discovery. The caregiver was convicted and ordered to pay restitution.
  
  
• Regional Bank SAR Reviews. Investigators increasingly note that unexplained withdrawals at casinos or sportsbooks often appear in elder exploitation cases, especially where relatives or caregivers have financial control.

These cases demonstrate the dual harm of gambling-fueled elder financial exploitation: the immediate financial devastation and the permanent loss of trust in caregiving relationships.

Forensic Indicators and Red Flags

Fraud fighters and compliance professionals should be alert to identifying these forensic indicators and Red Flags that fuels embezzlement, occupational fraud, and elder financial exploitation, such as:

• Frequent ATM withdrawals at or near casinos.
• Large payments to online gambling or sportsbook platforms.
• Unexplained cash activity by employees or caregivers with financial access.
• Reluctance to share bank statements or take vacations.

One challenge is that gambling-related fraud is often concealed through small, repeated withdrawals rather than single large transactions, delaying detection. Advanced analytics and behavioral monitoring can help close this gap.

Mitigation and Prevention

Organizations and families can take concrete steps to mitgate risk:

Strengthening Internal and External Controls

To combat gambling-fueled fraud and financial exploitation, compliance officers, internal auditors, bank secrecy act officers, and law enforcement must adopt a multidisciplinary approach that blends behavioral awareness with forensic vigilance.

Internal auditors and compliance employees should strengthen internal controls through segregation of duties, dual authorization, and independent review of financial accounts.

Financial institutions can leverage data and transactional monitoring analytics to identify patterns consistent with gambling-related fraud—such as frequent ATM withdrawals near casinos, large or repeated transfers to online betting platforms, and attempts to conceal such activity through small, incremental transactions.

Training programs should also help employees recognize behavioral red flags, including financial distress, sudden secrecy, or lifestyle inflation among staff or fiduciaries with asset access.

These proactive steps designed to help deter fraud before losses escalate.

Bank secrecy act officers and law enforcement play a critical role in detection and interdiction.

Banks should enhance suspicious activity monitoring systems to flag transactions tied to gambling establishments or sportsbooks, especially when linked to fiduciary accounts or vulnerable clients.

Cross-agency collaboration between FinCEN, state gambling commissions, and local authorities should be strengthened to identify emerging typologies and share data from Suspicious Activity Reports (SARs) more effectively. Law enforcement should prioritize rapid evidence collection, as casino surveillance data and transaction logs.

Finally, outreach programs promoting awareness of gambling addiction and its financial implications—supported by employee assistance initiatives and public hotlines—can help address the root behavioral drivers before they manifest as fraud.

Together, these strategies can help financial institutions and investigators close the gap between early warning and criminal consequence.

Conclusion

The link between gambling addiction and financial fraud is not hypothetical—it is visible in indictments, courtrooms, and suspicious activity reports across the country.

Gambling disorder intensifies the very pressures that drive embezzlement, occupational fraud, and elder financial exploitation, making early detection and strong controls essential.

As financial professionals, investigators, and advisors, recognizing the behavioral underpinnings of fraud is just as critical as spotting the accounting irregularities.

Understanding gambling’s role in the fraud cycle allows us not only to hold offenders accountable but also to protect organizations, clients, and vulnerable populations before the damage is done.

Need Help with a Gambling Problem?
The National Council on Problem Gambling has a phone number and website to help. You can call 1-800-522-4700 or go to www.ncpgambling.org.