Online sports betting presents security concerns which fall under multiple guidelines. As is sometimes the case, a specific security concern may apply to multiple guidelines. A wager high enough to trigger a Suspicious Activity Report (SAR) to the Treasury Department may initiate increased scrutiny, but money may not be the ultimate reason for security clearance denial or revocation.

How Sports Betting Can Raise a Security Concern: Guideline E – Personal Conduct

Sports betting can trigger security concerns under Guideline E – Personal Conduct in several ways, some more obvious than others.

Failing to disclose sports betting activity in the security clearance process

The Personnel Vetting Questionnaire (PVQ), formerly Standard Form 86 (SF 86), demands exacting and accurate detail. It asks: “Have you EVER experienced financial problems due to gambling?”

If you answer “no,” but you have substantial debt or a history of delinquent payments and a record of frequent transactions on DraftKings or similar, then a potential financial risk may have compounded into a personal conduct risk.

This may be somewhat mitigated if the mistake was an honest misunderstanding. People—especially young people—often fail to understand just what “gambling” is. For many, the word “gambling” calls to mind casinos and bookies at the horse track: not sports betting designed to have more in common with mobile games than anything else. University at Albany Senior Research Scientist Dolores Cimini observed that college students, when asked if they gamble, often answer no. But those same students may well answer yes when asked if they engage in something specific, like betting on the Super Bowl.

Chasing Bets and High-Risk Behavior

Patterns of risky behavior in one arena of life indicate the potential to take risks in other arenas: namely, security. Online sportsbooks are designed to entice the reward centers of the brain to induce repeated engagement at higher and higher stakes. The $5 bet that once satisfied a bettor’s dopamine fix may soon be insufficient. This produces the compulsion to place higher and higher bets. Even before qualifying as an addiction, such dopamine spikes skew one’s ability to perceive and accurately assess risk. When combined with mobile sportsbooks’ use of consumer data to target bettors with highly individualized, “no-sweat” offers, the risk of problem gambling increases considerably.

Notably, for those who suspect they may have a gambling problem, seeking professional help will not automatically trigger denial or revocation of security clearance eligibility. Establishing a treatment plan under the direction of a reputable professional, and following through with that plan evinces the good judgment and trustworthiness demanded in the classified workspace.

Legally Questionable Sports Betting Activity

Sports betting is not legal for all people in all situations. An unwillingness to follow rules presents a security risk. The following are examples of incidents that may merit proactive mitigation:

• Did you begin sports betting while below the legal gambling age in your state?
• Have you placed bets while in a state where sports betting is not legal?
• Did you bet on the same college sports you played in as a college athlete?
• Gambling may be legal in your state, but is the sportsbook you are using authorized to operate in your state?

Mitigating Sports Betting Security Concerns Under Guideline E

Be the One to Correct the Record

The surest way to mitigate providing false information, misrepresenting the facts, or failing to provide relevant information during the security clearance process is to correct the mistake yourself. Say, for example, you realize after the fact that you do, in fact, have experienced financial issues related to gambling, do not wait for the government to confront you with this information. Be the one to point out the incorrect information and provide the correct information. Also be prepared to explain the reason for the incorrect information.

If you realize now that you did fail to report gambling activity. This can sometimes be mitigated if the omission came from an honest misunderstanding. Generally, it is preferable to be the one disclosing an omission/false information than for the government to be the one confronting you with it.

Be prepared to explain the reasons for the omission or false information. This comes with the caveat that the explanation, “I did not realize that betting on sports was gambling,” does not speak highly of your judgment. It does, however, present a far more flattering picture than the alternative: being a liar whom the government needed to confront with “the receipts.”

Sports Betting and Guideline F – Financial Considerations

Sports betting is a legal form of gambling in many states that in and of itself does not present an issue. But in some cases, sports betting may present a security concern under Guideline F – Financial Considerations.

Failing to report gambling earnings to the IRS

Though you may not be a professional gambler, winnings from sports betting are still fully taxable income. You are obligated to report your winnings to the IRS if they meet the applicable threshold. Educate yourself on federal, state and local tax codes.

It is not good to be in debt. It is even worse to be in debt to the government.

Maintain records of all wins and losses, including such details as:

• The sporting event bet on
• Amount of payment
• Date of the winning/losing event
• Details of the wager
• Taxes withheld, if any

For all these transactions, it is to your benefit to be able to explain where that money came from and where it went. One practice NOT to adopt is using your credit card to process multiple bets from buddies watching a game; that is serving as a bookie and raises a whole host of issues regarding outside employment.

Problem Gambling, Compulsive Betting and Gambling Addiction

The Financial Record portion of the PVQ (SF-86) asks if you have EVER experienced financial problems due to gambling? It then prompts the applicant to provide dates, amounts, description of ensuing financial problems. It also asks what actions you have taken to remedy the problem and, if you have not taken steps to rectify the issue, asks you to explain: why not?

Substantial credit card debt caused by a furlough or natural disaster is one thing. Credit card debt exacerbated by frequent betting transactions on a mobile sportsbook is another matter. Gambling addiction, like any addiction, has the potential to skew one’s priorities and impact one’s ability to assess risk, as well as override reason and values. In addition to being particularly susceptible to monetary bribes and blackmail, the addict’s judgment and reliability are highly questionable at best.

What if Your Spouse or Partner is the One With a Gambling Problem?

Your household and relationships are relevant to assessing the relative security risk you present. Adjudication emphasizes trustworthiness and reliability, but factors beyond your control may still present a security concern. The question is not only: did the financial issue result from circumstances beyond your control? But also, did you act responsibly at the time given the circumstances when you discovered the issue? And, if you did not discover the issue for some time, why not?

The need to be proactive in identifying, reporting, and resolving the issue remains the same: whether “patient zero” is you or your spouse.

Mitigating Sports Betting Security Concerns Under Guideline F

Be Mindful of Your Tax Obligations

Sports Betting Wins Are Reportable Income. Maintain careful financial records. File your taxes on time. If you owe taxes, work with the IRS to establish a payment plan and make payments consistently.

Make a Plan to Resolve Debts

If in debt, work proactively to resolve it. Work with creditors to establish a practicable plan and follow through consistently.

Problem Sports Betting and Gambling Addiction

Many of the states that opted into legalizing sports betting offer resources to address problem gambling. Research state-sponsored support resources. Seek professional help and establish a treatment plan. Track and record progress.

Candor and proactivity are valued in addiction-related situations. With credible professional support, establish a plan to correct the situation and follow through with that plan.

Does Seeking Professional Help for a Gambling Problem Result in Losing Security Clearance Eligibility?

No, seeking professional help for a psychological condition—including addictions like gambling addiction—are not sufficient cause for security clearance denial or revocation in most cases. In general, it speaks highly to one’s trustworthiness to: (1) identify with clear eyes that one has a problem; (2) take ownership of the problem and self-report as appropriate; (3) take proactive steps to address the problem and ensure it does not repeat.

Contrary to popular belief, actively avoiding treatment is not a sound way to protect one’s security clearance. Rather, seeking reputable, professional help demonstrates good judgment: a required quality for anyone entrusted with classified information.

Mitigating Security Concerns Related to Problem Sports Betting and Gambling Addiction

The trustworthiness of any given individual is assessed in terms of a larger context. Mitigation strategy can often benefit from a similarly holistic approach. Cases vary, but steps like the following may help to mitigate security concerns related to problem sports betting or gambling addiction in applicable situations:

• Enrolling in state-sponsored self-exclusion options;
• Contacting tax authorities to establish a payment plan and making those payments consistently;
• Enrolling in debt counselling;
• Participating in regular support group meetings, like Gamblers Anonymous, Gam-Anon, etc.;
• Seeing a psychiatrist, psychologist, and/or counselor to establish a treatment plan, then following through with that plan.

For all such steps, maintaining careful records and documenting progress helps demonstrate positive pattern shifts over time.

Some states, including New York, Maryland, as well as D.C. offer Self-Exclusion Programs which enable applicants to prevent themselves from participating in gambling activity and forfeit winnings. In general, state-sponsored resources—whether behavioral, financial, or both—are a solid option when mitigating security concerns.

For some, organizations and groups that cater to the unique needs of servicemembers and veterans may be worth considering. The U.S. Government Accountability Office (GAO) 2025 report confirmed independent research which found military personnel and veterans to be at higher risk for problem gambling than the general population. The GAO suggests that problem gambling’s prevalence among servicemembers is fueled, in part, by the accessibility of online sports betting. Problem gambling often presents alongside other psychological conditions, like PTSD.

The common factor between these mitigating steps is this: taking ownership of an issue, seeking professional help when appropriate, proactively establishing a plan to correct the issue, and following through with the plan.

Dan Meyer, Esq. is a Partner at Tully Rinckey PLLC’s Washington, D.C. office and has dedicated more than 25 years of service to the field of Federal Employment and National Security law as both a practicing attorney and federal investigator and senior executive. He is a lead in advocating for service members, Federal civilian employees, and contractors as they fight to retain their credentialing, suitability and security clearances.

Tully Rinckey attorneys understand that issues involving security clearances and financial strain can be challenging, and they will handle your matter with the attention and tact it deserves. If you have additional questions, our team of dedicated security clearance attorneys is available to assist you today. Please call 8885294543, or schedule a consultation online.