Gambling Explored – Does the UK Really have a Problem?
Posted by Harry Kane on Friday, May 17, 2019
At present, there’s a huge focus on problem gambling in the UK, as the Gambling Commission continues to push ahead with its core strategic objectives through 2021. At the heart of this is the desire to safeguard vulnerable and underage customers online, through a series of measures and far greater collaboration with operators.
There’s some dispute about the extent of the issue in the UK, however, particularly with regards to underage gambling. After all, figures from the gambling commission suggest that the amount of potential problem gamblers aged under 16 has almost halved since 2011, as the regulator and technological innovation combine to provide more effective safeguard youngsters.
But where exactly does the truth lie? We’ll assess this in the article below, whilst asking whether the true extent of problem gambling in the UK is accurately reported.
Participation and Betting – The Key Statistics
There’s no doubt that the iGaming market has become big business during the last decade, with this sector having seen its gross gaming yield (GGY) increase by 13.7% in the year ending March 2018.
At this time, the iGaming GGY was estimated at a hefty £5.4 billion in the UK, with more than 93.1% of this turnover provided by casino gameplay and sports betting.
At the same time, the market grew to account for 37% of the overall gambling industry, and there’s no doubt that this trend will continue at pace in the future.
This is clearly being driven by higher levels of participation in the marketplace, as the number of casual gamblers continues to increase exponentially. This is particularly relevant in the case of sports betting, where fans of specific sports are increasingly inclined to place frequent wagers through online and mobile channels.
In this respect, it’s horse racing fans who are the most likely to wager on their preferred sport. In fact, an estimated 97.4% of horse racing enthusiasts regular bet on the action that they watch, primarily as a way of enhancing their enjoyment of the overall experience.
Boxing follows closely behind with 86.4%, whilst 81.1% of tennis and golf fans wager on specific matches and events. A surprisingly low number of football fans participate in sports betting, with 76.8% of supporters regularly wagering on results and chosen markets.
These statistics have been extracted from detailed data sets, which canvassed the opinion of respondents in the UK aged between 18 and 54.
Whilst this does little to inform us about problem gambling in the UK, it at least suggests that audiences watching our nation’s most popular sports are increasingly likely to place bets on the action as it unfolds.
It also highlights the way in which is online and mobile gambling channels have offered a convenient betting vehicle for casual sports fans, whilst revealing the immersive nature of in-play wagering and its incredible range of available markets.
A similar trend has emerged in the world of virtual casino gameplay, as the number of online operators has increased exponentially since 2015. This has helped to contribute to a vast GGY for the remote casino sector, with slots alone generating a turnover of £2 billion in the year ending March 2018.
This also hints at a rise in the number of casual but frequent gamblers, who have been engaged by the fun and immersive nature of slots and consider virtual gameplay as one of their preferred pastimes in the digital age.
Assessing the Concept of Problem Gambling in the UK
It’s at this point that we need to join the dots that connect online sports betting and casino gameplay, with casual bettors increasingly likely to indulge themselves in both marketplaces.
More specifically, individuals who bet on sports occasionally are around 3.2 times more likely to gamble on casino games. Conversely, regular sports bettors are more than 3.9 times more likely to frequent casino platforms, with most of the UK’s market leading operators operating these services through a single website.
Whilst this may create a scenario where people are more likely to become immersed in the increasingly diverse world of gambling, however, is there any evidence to suggest that problem gambling is on the rise in Britain?
The short answer is yes, with a hefty 35.3% of sports bettors currently considering themselves to be profitable. Despite the fact, 52.6% of these individuals fully understand how a betting exchange works, and it has been suggested that this type of optimistic mindset often underpins unhealthy gambling behaviour.
Interestingly, people who regularly bet in-play (which roughly amounts to 45.4% of the gambling audience in the UK), were around 2.2 times more likely to believe that their actions proved to be profitable.
This reaffirms the notion that diverse and emotive real-time markets may provide a more fertile breeding ground for problem gamblers, which is one of the reasons why leading operators have agreed to a voluntary advertising ban during televised sporting events.
In terms of gender, men are considerably more likely to bet on the sports that they watch, whilst this demographic is also 22% more likely to believe that they were profitable than women. This is a fascinating statistic and one that seems to support the findings that males are seven-and-a-half times more likely than women to become problem gamblers over time.
Exposure to sports betting and online casino gameplay is clearly a key factor here, but it cannot be denied that fundamental flaws in their mindset may also place men at higher risk of developing an addiction.
Similar trends can be found and followed in the online casino vertical, where 29.6% of players consider themselves to be profitable. This number mostly consists of frequent gamblers, with this demographic more than two times more likely to believe that they were popular than occasional players.
Once again, men are more likely to consider themselves profitable than women in the world of virtual casino gambling, with 31.4% of males continuing to wager under this belief. In contrast, just 24.4% of women claim that they’re profitable casino players, and this only serves to underline the suggestion that male gamblers are considerably more at risk than their female counterparts (even as women become increasingly active in the marketplace).
Given the focus on young and underage gambling, it’s also interesting to note that younger demographics are amongst the most likely to hold inaccurate beliefs concerning their profitability.
In fact, a staggering 54.5% of casino players aged 18 to 24 believe that they’re profitable overall, with this figure falling to just 30.7% for punters aged between 25 and 34. The number continues to decline as the age demographics increase, suggesting that the regulator is right to address the issue of problem gambling amongst youngsters.
In the world of sports betting, 58.5% of 18 to 24-year-olds claim to be profitable in their endeavours, compared to just 36.% of those aged between 25 and 34.
There’s a clear and significant takeaway here; as younger players appear to be more vulnerable online and are clearly finding it increasingly difficult to distinguish between perception and reality. This may arguably because online and largely unregulated social channels are exposing youngsters to gambling at an early age, without equipping them with the knowledge or understanding of how betting markets actually work.
Even more, concerningly, gamblers aged between 18 and 24 are betting in larger quantities than their contemporaries. Overall, 52.3% of bettors are currently risking more than £10 a month online, which is over than 4% more than people aged between 25 and 34.
This number falls even further (to 41.5%) for those aged between 45 and 54, so it’s clear that younger gamblers are a little more reckless and arguably less well-versed in managing their bankrolls when wagering online.
Incredibly, an estimated 12.2% of people aged between 18 and 24 are wagering more than £100 a month on sports bets alone in the UK. This number falls considerably for older demographics, and this represents a clear area of focus for responsible gambling authorities and one that’s surely indicative or problem behaviour nationwide.
In order to put these figures into context and analyse the true extent of problem gambling in the UK, it’s important to consider the spending power of each demographic reviewed. It’s well-known that Millennials are part of the most influential and biggest spending consumer demographics in the world, for example, so the fact that people in the 18 to 24 age wager more than others may not be a particular cause for concern.
However, it’s fair to surmise that the youngest members of this demographic are unlikely to have the spending power of those who are older, whilst there’s also evidence to suggest that individuals in low-income brackets are more likely to believe that they’re profitable when wagering online.
Across all demographics, gamblers from low-income brackets were a worrying 8% more likely to believe that they were profitable when playing casino games. This unearths a potentially significant source of societal harm, whilst suggesting that some bettors are suffering from a lack of financial education and a deep desire to improve their fiscal circumstances through online gambling.
However, people in this demographic are less likely to bet on sports than those from middle-income brackets, which in turn identifies online casino gameplay as a more significant threat to those exhibiting problem betting behaviours.
These figures provide a little more confusion and something of a grey area for analysts, but it’s fair to assume that individuals from low-income backgrounds are at higher risk of becoming addicted to casino games.
Casino players are also more likely to believe themselves to be profitable then sports bettors overall, although members of the latter demographic spend more on average and are likely to live within middle-income brackets.
The Last Word – Online and Problem Gambling in the UK
Whilst the figures are inconclusive and the prevalence of problem gambling in the UK may be a little overstated, members of society are certainly showcasing concerning signs and patterns of problem behaviour at present.
Of particular concern is the sheer number of sports bettors and casino players who believe themselves to be profitable, as these figures simply don’t tally with the house edge provided by bookmakers and profit margins achieved by these entities.
This hints at an evident and apparent lack of financial education, and one that continues to impact on youngsters as the government struggles to provide financial lessons for secondary school children.
In the case of lower-income casino players, there’s also a concern that aspirational advertising and the accessibility of online gameplay is promoting gambling as a viable way for people to improve their financial circumstances.
It’s also arguable that people who bet online are more likely to wager more every month, particularly in relation to those who frequent high street bookmakers.
Around 38.7% of online bettors wager between £10 and £100 each month, whilst just 29% of gamblers spend this month offline. Not only this, but 8.6% of online gamblers bet between £100 and £500 each month, compared to just 5% of all offline players.
This makes it clear that the accessibility of online gambling is underpinning a number of social and educational issues in the UK, creating a younger demographic of gamblers who are spending more and overestimating their profitability, without fully understanding betting exchanges or how return-to-player (RTP) rates and the house edge impacts on their potential return.
Whilst this is a concern that continues to drive the actions of the UKGC, there are a couple of the reasons for optimism in the market. Firstly, the Commission, operators and responsible gambling organisations are becoming more committed in their attempts to safeguard vulnerable players, with more stringent regulatory measures and a greater sense of collaboration between these stakeholders ushering in changes for the better.
Secondly, it appears to be younger gamblers who are most likely to showcase signs of problem behaviour, and this provides ample time and opportunity for industry stakeholders to educate their customers and cultivate responsible conduct online.
As with most things in life, the true extent of problem gambling in the UK sits somewhere in the middle of two extremes. However, it’s important that the UKGC and its partners continue to prioritise the safety of underage and vulnerable gamblers nationwide, whilst outlining proactive and reactive solutions that challenge irresponsible behaviour.