In 2016, multiple news sources (including the Hollywood Reporter, New York Magazine, TV Guide and People) reported that David Milch is a gambling addict who lost about $25 million between 2000 and 2011 (mostly through racetrack betting) and who owes the IRS $17 million. The financial collapse came as a surprise to Milch's wife Rita, who then sued their business managers for not informing her of the losses. The Milches put both of their houses (a six-bedroom, five bathroom, Brentwood, California, mansion and a 22-acre Martha's Vineyard estate) on the market and moved into a much-smaller rental property in Santa Monica, and Rita has placed David on a $40-a-week allowance to ensure that he can no longer gamble.