Concerns grow over gambling addiction in military

After 9/11, then-Army Staff Sergeant Dave Yeager sat down at a slot machine operated by the Department of Defense at a U.S. military base in South Korea and made what he now calls the biggest mistake a budding problem gambler can make: He won.

“All that stress, all that tension, everything that I was carrying at that moment, just disappeared,” Yeager told CNBC.

What should have been entertainment, a way for soldiers to relax, turned into a disorder for Yeager that cost him his career, his financial security, and his family.

“It went from, I enjoyed doing this, to, I have to do this. It became an obsession for me,” he said.

In his book:Fall In: A veteran with a gambling addictionYeager wrote about how he borrowed money from subordinates, stole from petty cash, and financially abandoned his family. Such vulnerability in a military man affects individual readiness and potentially even national security if enemies exploited it, he pointed out.

But when Yeager confessed his vulnerabilities to his commanders and advisers, no one pointed the finger at his gambling or helped him help himself.

“The chaplain said I should go to bingo night on Sunday. It would give me something to do,” Yeager said. “And I thought, 'I think you're missing the point.'”

According to a report by the U.S. Department of Defense, there were more than 3,100 slot machines in operation on U.S. military installations in a dozen foreign countries in 2017. Government Accountability Office reportThe machines generate more than $100 million in revenue annually and are seen as a morale booster for military personnel's well-being and recreation, similar to activities such as golf, libraries and other entertainment.

Abroad, military personnel aged 18 and over are allowed to gamble.

Domestically, slot machines are prohibited on military bases, although casinos are often located nearby. There are seven local casinos located 20 minutes from Joint Base Lewis-McChord in Washington state, one of the country's largest military installations.

In 2018, when a Supreme Court ruling cleared the way for states to legalize sports betting, betting opportunities exploded. Now, all but four states allow some form of legal betting.

“Suddenly, we started seeing a lot of people with gambling problems calling and asking for help, usually within a year or two of the problem developing,” said Heather Chapman, a clinical psychologist and director of the national gambling treatment program for the Department of Veterans Affairs.

Diagnoses of pathological gambling disorder among military personnel and veterans are skyrocketing, with more patients receiving a diagnosis in the first half of 2024 than in all of 2022, according to VA research. Twenty percent of those referrals are women.

“That's not too surprising because as access and availability increases, we often see an increase in unhealthy involvement,” said Dominick DePhilippis, deputy national director of mental health services for substance use disorders at the VA.

The VA study found that military personnel are more vulnerable to gambling problems than civilians and are reluctant to self-disclose, fearing loss of security clearance or wanting to avoid the stigma attached to gambling problems.

Research has found that gambling problems and gambling disorders among veterans in some parts of the U.S. are as high as 10.7 percent, the department said. However, these studies have been smaller and typically regional in nature, leading to wide variations in results.

To address the growing concerns, the VA operates two residential treatment centers for gambling addiction and has numerous partnerships with civilian agencies across the country, Chapman said.

“We're kind of a Mecca for gambling addiction,” she said.

The VA began treating gambling disorders in the late 1960s, about nine years after Congress banned slot machines in the U.S.

The Defense Department declined CNBC’s request for an interview but said in a statement that there has been no systemwide increase in resources to address problem gambling. It said a 2018 Health Related Behavior Survey — before the sports betting boom — found that rates of problem gambling among military personnel, at 1.6% to 1.7%, were in line with rates among the civilian population.

“DoD researchers are aware of changes in gambling availability as a result of new mobile and sports betting options and will consider these variables in future military gambling research,” a department spokesperson said in an email.

The army is carrying out a new studythe results of which are expected in the fall, the spokesman added

Service members are now screened for gambling disorder every year during their medical exams, following a provision signed into the National Defense Authorization Act by then-President Trump. And the Defense Department said service members with gambling problems would not be punished for seeking treatment after being screened.

Education policies are largely determined by individual commanders and vary widely from base to base.

Brianne Doura-Schawohl, a Coast Guardsman's wife and responsible gaming lobbyist, wants the Defense Department to implement military-wide gambling education and treatment policies.

“These policy manuals need to be updated to address this addiction the way they address things like alcohol. We need to do more to prevent and treat this disorder,” Doura-Schawohl said.

“I believe that the men and women who wear that uniform every day are willing to sacrifice everything. I think the least we can do is have the government say we have your back,” she said.

Unlike casinos in the U.S., the DOD is not required to provide educational materials or resources on how to get help for a gambling problem, according to a spokeswoman for the National Council on Problem Gambling.

“The NCPG believes that those who make profits from gambling – including the Department of Defence – have an ethical and economic obligation to use some of those profits to reduce gambling-related harm,” the organisation said in a statement.

Senators Elizabeth Warren (D-Mass.) and Steve Daines (R-Mont.) introduced a bill in 2018 called the Gambling Addiction Prevention Act (GAP) that sought to require the Department of Defense to track gambling disorders and implement policies and programs to treat gambling problems among military personnel. It failed to gain traction.

Recently, Rep. Paul Tonko, D-N.Y., proposed an amendment to the most recent National Defense Authorization Act to ban all gambling on military bases. However, the amendment was not included in the final legislation.

“Our brave service men and women sacrifice everything to protect our nation and its freedoms. We must do everything we can to support them by addressing problem gambling head-on and ensuring that this known addictive substance is treated with the same seriousness and caution as other addictions,” Tonko said in a statement to CNBC.

Around patriotic holidays like the 4th of July, many casinos and bookmakers send targeted promotions to military personnel and veterans.

At Pahrump Nugget and Lakeside Casino in Nevada, Golden Casino Group offers “Military Mondays,” where veterans and active military personnel can win free slots using just their card.

Some casinos offer veterans their own military themed membership card based on their service. For example, Penn's Heroes Program offers rewards and promotions “for those who have given more.”

Caesars' Rewards Salute Card “shows its appreciation” for active military personnel and veterans by rewarding them with credits and free play offersalthough the company said that any rewards member can convert the rewards into free play.

“We are not offering veterans easier access to free play offers or additional offers,” a company spokeswoman said.

MGM Resorts has decided to offer only non-gambling related promotions that are targeted at the military and veterans. It also helps fund clinical research into gambling disorders within the military community.

BetMGM, a joint venture with Contain which employs a veteran to lead its responsible gambling initiatives, has chosen not to target promotions to military personnel or veterans.