The influence of rising living costs on gambling behavior
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21 Jun 2024 •
Reading time: 4 minutes The crisis surrounding the rising costs of living that is gripping Belgium and much of the world has a profound impact on gambling behavior. This crisis acts as a catalyst for shifts within the digital gambling landscape. As households struggle with increasing expenses and declining purchasing power, individuals from diverse socio-economic strata find themselves in uncharted territory in search of financial stability.
The changes in gambling behavior manifest themselves in different ways, such as people visiting knowledge centers online and using physical betting shops to keep warm due to rising energy bills.
The psychological impact of financial pressure
The psychological effect of financial pressure also plays a role, highlighting a link between economic difficulties and gambling behavior. As individuals struggle with mounting debt and dwindling financial resources, the appeal of online gambling as a possible escape from reality is becoming increasingly tempting.
The proliferation of online gambling platforms has further increased the accessibility and convenience of gambling. While many people choose to visit physical betting shops, a growing number of individuals have turned to digital gambling as a way to relieve boredom and escape the constraints that come with minimal disposable incomes.
Gambling remains popular in disadvantaged neighborhoods
According to the Patterns of Play report, commissioned by GambleAware in the UK and carried out by the Gambling Commission in partnership with the National Center for Social Research and the University of Liverpool, gambling on football and horse racing remains very popular especially among people in deprived areas.
GamCare also examined the impact of rising living costs on casino industry trends and found that people on welfare and those living in underserved areas are likely to gamble to supplement their income. Advisors at the National Gambling Helpline have heard numerous reports of how rising living costs are impacting the lives of callers.
In total, 29% of gambling accounts come from the most deprived areas, while only 13% come from the least deprived areas. Similarly, 25% of gamblers’ losses came from the top 20% of deprived areas in the UK. This highlights the greater likelihood of someone from a disadvantaged area gambling to ease their financial burden.
Parents turn to gambling under financial pressure
Findings from GamCare, conducted by YouGov, also show that a specific sub-section of society – parents – is coming under pressure. For those struggling with gambling problems, it is not uncommon for parents to sacrifice essentials for their children in order to gamble. This could have a huge socio-economic impact, causing further challenges for many families who are already struggling.
Although GamCare and GambleAware both state that rising costs of living are likely to lead to an increase in betting and gambling, there are conflicting figures. GamCare’s report also suggests that for most consumers, the recession and cost of living crisis has not significantly negatively affected their online gambling spend. On the contrary, gamblers have reduced both their offline and online gambling activities in line with the increased financial pressure.
The impact of living costs on gambling
Of course, it is impossible to say that the rising cost of living has affected everyone’s gambling behavior in the same way as explained by the Gaming Commission. For some segments of the population, the rising cost of living may serve as a moderating force. Faced with increasing financial pressures, some individuals may adopt a more cautious approach to gambling, showing more restraint and discernment in their gambling activities.
This subset of gamblers may view gambling as a discretionary or optional expense, subject to adjustment in accordance with changing economic conditions. This means that the rising cost of living can lead to a reassessment of priorities, resulting in reduced gambling spending and increased awareness of the need to be money conscious.
Conversely, the increase in economic hardship and rising costs of living may exacerbate vulnerabilities for certain consumers, increasing the risk of gambling.
Supporting gamblers through the livelihood crisis
As the rising cost of living continues to influence consumer behavior, particularly within gambling, it is important to recognize the diverse and nuanced ways in which individuals navigate these economic challenges. Amid these evolving dynamics, Go Gambling is committed to providing the tools and information needed to make informed gambling decisions.