Nearly 80% of Australians have participated in some form of gambling. For most people, the activity of gambling is an occasional recreational pursuit and does not cause a problem. It is for some, however, a debilitating addiction affecting every area of their lives. Pathological gambling commonly referred to as compulsive gambling or gambling addiction, is a progressive behaviour disorder in which a person has an uncontrollable preoccupation, and urge to gamble. This results in excessive gambling, the outcome of which is the loss of time, money and emotional and mental health. The gambling reaches the point where it compromises, disrupts and destroys the gambler's personal life, family relationships or vocational pursuits. These problems lead to the intensification of the gambling behaviour.

Very often Pathological Gambling is referred to as the "hidden disease" because there are no physical or visual symptoms. There is no "telltale" smell on the breath, no stumbling when walking or slurring of speech. Yet, the effects of Pathological Gambling can be as devastating as alcohol and drug addiction and can result in both financial and personal destruction.

Since 1980, the American Psychological Association has classified Pathological Gambling, as a mental health disorder of impulse control. For an individual to be diagnosed with this addiction, the person must have five or more of 10 criteria. In prevalence studies, individuals with three or four of the following criteria are considered "problem" gamblers and those with one or two are classified as "at-risk."
Gambling addiction starts quietly. Winning enhances the gambler's self-image and ego. Losses are rationalized as poor advice or bad luck. However, as losses increase and self-esteem is jeopardized, the gambler borrows money to "invest" in gambling in hopes of breaking even. The need arises to hide new losses and borrow more money to make up the difference. At this point, lies, loan fraud, absenteeism, family disputes and job changes are common danger signals.

Finally, desperation occurs as the gambler becomes obsessed with getting even to cover stolen money, withdrawals from family bank accounts and secret loans. The gambler panics at the thought that the gambling action will cease if the credit or bailouts stop. This results in the eventual destruction of the gambler's personal life, family relationships and career. The gambler can experience severe mood swings and suicide may be considered and attempted as a way out. The costs to the gamblers are only the beginning. Excessive gambling also presents negative consequences to those closest to the gambler (e.g. family and friends), as well as to employers (e.g. poor work performance, theft and embezzlement) and places a hardship on our legal and prison systems, and public assistance programs. Overall, the cost to society, as a result of compulsive gambling, is considerable and it is now a major public health problem in Australia.