The cost of living crisis gripping the UK and much of the world is having a profound impact on gambling behaviours, serving as a catalyst for shifts within the digital gambling landscape. As households grapple with escalating expenses and dwindling purchasing power, individuals from diverse socio-economic backgrounds have found themselves navigating uncharted territories in their search for financial stability.
This change in gambling behaviour has shown itself in various ways, such as people heading to online knowledge hubs and visiting brick-and-mortar betting shops to keep warm as energy bills rise.
Unexpected financial strain: A key driving force behind online gambling?
In the face of mounting financial pressures, the allure of online gambling as a potential source of supplementary income has become increasingly enticing. For some people, the cost of living crisis has led to a surge in online gambling activity. Faced with the daunting challenge of meeting basic necessities on limited budgets – such as paying bills, buying groceries and affording childcare – a subset of the population has turned to gambling as a means of boosting their income. In fact, according to a 2023 study from GamCare, 42% of respondents were optimistic that gambling would enhance their financial situation in the coming year.
The psychological toll of financial strain also comes into play, highlighting a link between economic hardships and gambling behaviours. As individuals struggle with mounting debts and dwindling financial resources, the allure of online gambling as a potential escape from reality has become increasingly enticing.
Plus, the proliferation of online gambling platforms has further amplified the accessibility and convenience of gambling. Though many people choose to visit brick-and-mortar betting shops (one in six people gambling at harmful levels had used a warm bank in the past 12 months according to YouGov compared with 5% of the general population) a growing number of individuals have turned to digital gambling
as a means of alleviating boredom and escaping the limitations that come with having minimal disposable income.
Betting remains popular in deprived neighbourhoods
According to Patterns of Play – a report commissioned by GambleAware in the UK, conducted by the Gambling Commission (GC), in conjunction with National Centre for Social Research (NatCen) and the University of Liverpool – betting on football and horseracing remains highly popular, as do bets associated with higher risks of significant losses, especially amongst those in deprived areas.
GamCare has also investigated the impact of the cost of living on gambling trends and found that those on Universal Credit and people living in deprived areas are likely to resort to gambling to boost their income. National Gambling Helpline advisors have heard numerous reports of how the rising cost of living is impacting the lives of callers.
In total, 29% of gaming accounts come from the most deprived areas, while only 13% came from the least deprived areas. Similarly, 25% of customer losses from gaming came from the top 20% of deprived areas in the UK. This highlights the increased chance of someone from a deprived area resorting to betting to lighten their financial burden.
Over the last year, advisors have heard from callers who have been using betting shops as a warm bank, people on Universal Credit gambling to make extra money to cover their bills, as well as people on disability benefits who have turned to the gambling to try and make ends meet.
Parents resort to betting in light of financial strain, but reports are conflicting
GamCare’s findings, conducted by YouGov, also shed light on a specific subsection of society - parents. For those struggling with gambling problems, it’s not uncommon for parents to sacrifice essentials for their children to allow for bets to be made. In fact, half of parents who are problem gamblers were going without food or clean clothes to support children, compared with 20% of parents overall. This can have a huge socio-economic impact, placing many families who are already struggling into further challenges.
However, despite GamCare and GambleAware both stating that the cost of living is likely leading 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 have not significantly influenced their online gambling spending habits negatively. The report further states that if anything, gamblers have reduced both their offline and online betting activities in accordance with the increased financial pressure.
The cost of living’s impact on gambling depends on personal circumstances
Of course, it’s impossible to say that the cost of living has impacted everyone’s gambling behaviours in the same way, as explained by the Gambling Commission. For some segments of the population, the rise in the cost of living can serve as a moderating force. Faced with mounting financial pressures, some individuals may adopt a more cautious approach towards gambling, exercising greater restraint and discernment in their wagering activities.
This subset of gamblers may view gaming as a discretionary or optional expense, susceptible to adjustments
in accordance with changing economic conditions. This means that the rising cost of living could prompt a reassessment of priorities, leading to reduced gambling spending and a heightened awareness of the need to be money-savvy.
Conversely, the increase of economic hardships and escalating living costs may exacerbate vulnerabilities for certain consumers, increasing the risk of gambling.
As households contend with strained budgets, the appeal of gambling as a potential means of income could intensify, particularly among those struggling with precarious financial circumstances. It’s easy to see how someone could feel that betting is one of the only ways to overcome financial hurdles, especially if there are no other ways to boost their income. It’s a lot easier to succumb to problem gambling when faced with economic uncertainty.
Supporting punters through the cost of living crisis
As the cost of living continues to influence consumer behaviours, particularly within gambling, it is important to recognise the diverse and nuanced ways in which individuals navigate these economic challenges. Amid these evolving dynamics, Go Gambling is dedicated to empowering individuals with the resources and information needed to make informed decisions about betting.
